Like most other collectibles, the market dynamics are complex. But it’s useful to start with ‘the three Ps‘:
Production volumes – There are finite supplies of wines from the top estates from particular years, and this ‘rarity’ value can increase as a vintage ages. Also, one reason why top Burgundy commands such high prices is the small production volumes, even when compared to top-end Bordeaux.
Producer reputation – Wines from producers with the best reputations tend to be the most desirable.
Provenance – Even the best wine in the world will lose its appeal if the case has been opened, or if it has been stored under the stairs for 20 years instead of, say, in the producer’s own cellar.
In addition to the above, the following factors also have a major part to play in how desirable a wine may be to collectors:
Appellation – The best Cru.
Vintage – The best rated vintages will command a big premium.
Limited edition – An extension of vintage and appellation.