Investment in 2020 Rossignol-Trapet Chambertin Grand Cru with attractive price/quality ratio

Luxury, Lipstick And Fine Wine

Burgundy seems to be a good investment both in and out of inflation, and this investment tip is all about investing in Burgundy. Even in the Grand Cru icon, Chambertin, which ranks among the world's best vineyards. 2020 Rossignol-Trapet Chambertin offers the investor a cheap but attractive opportunity to add Chambertin to the portfolio. 

According to Liv-ex, the Liv-ex Fine Wine 50 rose by 1.3 % in Q3, keeping fine wine stable in Q3. Fine wine thus shows solidity and stability against both commodities and global stocks, which fell into a bear market during the same period. So even though rising inflation and fears of recession lurk, demand for fine wine remains. The Burgundy 150 index has also been the best-performing sub-index YTD with a growth of 27 %, and in fact, the best-performing wines in the Liv-ex 1000 index are also from Burgundy.

The essence of this investment tip is, of course, world-class wine. But it is also a tale of Burgundy investment from a historical perspective, lipstick index, and affordable luxury. Read much more potential below.

An Introduction: Rossignol, Trapet And Chambertin In Formidable Union

Rossignol-trapet is a formidable union of two families whose DNA consists mainly of the art of winemaking. Since the 16th century, Rossignol has been making wine in Volnay, while the Trapet family has been making wine in Gevrey-Chambertin since the 18th century. Jacques Rossignol and Mado Trapet married and had their sons David and Nicholas, and in 1990 Mado inherited half of the Trapet family's wine holdings in Gevrey-Chambertin. The remaining half went to her nephew, Jean-Louis Trapet, which is also now a widely recognized domain in Burgundy.

In 1990, Domaine Rossignol-Trapet thus became a reality with David and Nicholas at the helm. The domain owns unique wine pearls in Burgundy, of which their 1.6 hectares on the legendary Chambertin vineyard represent their very best.

And Chambertin will always be recommended as a long-term investment, regardless of producer, because it has luxury status. Below, 2020 Rossignol-Trapet Chambertin is woven into the story of Burgundy investment, but we start somewhere else with Jeremy Siegel.

Lipstick Index And Burgundy Grand Cru

The above underlines that in the long term, prices of good Burgundy wine rise quite considerably, regardless of high and low economic cycles, which is why we continue to recommend investing in the category when suitable investment opportunities present themselves.

Right now, inflation is rising, which means that fewer people are demanding the very most expensive but are instead looking for alternatives - you may even know this from your own consumption. This phenomenon is described in the financial industry as the "Lipstick Index." Leonard Lauder, the heir to the Estee Lauder cosmetics company, noted that sales of his products increased during periods of recession when consumption otherwise tends to fall in many respects. This was a consequence of consumers seeking so-called affordable luxury. Instead of the highest luxury, such as designer bags, consumers sought affordable luxury, which in this case was expensive make-up.

The mechanism can be transferred to the luxury wine market. There will always be those who demand the ultimate, while more will seek the next best luxury in a recession. Here you have the opportunity to invest in wine from the Grand Cru vineyard Chambertin, which, together with Musigny and Romanée-Conti, is considered the absolute best vineyards in Burgundy. Chambertin is thus an excellent luxury, and there will continue to be demand for both Leroy Chambertin, Rousseau Chambertin, and Dujac Chambertin. At the same time, cheaper alternatives such as Rossignol-Trapet Chambertin may become extra popular choices.

Rarewine Invest's Opinion

At RareWine Invest, we, of course, keep a close eye on the world situation. Still, regardless of this, it is a fact that wine, and Burgundy, in particular, has been an attractive investment, regardless of the economic climate, which is why it is, of course, interesting to have an investment tip like this placed in a broader perspective.

It is, of course, significant that the average annual return on Burgundy has been 12.5% since 2004. And interestingly, consumers seek affordable luxury in recessions, which sends the consumer arrow to a wine like the 2020 Rossignol-Trapet Chambertin.

In reality, however, it is an insult to describe 2020 Rossignol-Trapet Chambertin as something that is second best, as secondary ranking in the hierarchy is only due to names like Leroy and Rousseau. To this end, it is also essential to remember that Rossignol-Trapets 2020 Chambertin is among the best the domain has released. At the same time, however, the price does not reflect that it is right on the tail of its mighty Chambertin neighbors in terms of points.

This is, therefore, a unique entry into Chambertin: one of the world's best vineyards.