Wine Auction 101Wine auctions can be a lot of fun for novices and experts alike. While the lively atmosphere and the opportunity to socialize with a diverse array of wine lovers is enough to draw many oinophiles to these events, the prospect of getting a bargain on some choice vintages is the best incentive of all. Here are some ideas to help you have the best experience and get the best deal at the next wine auction you attend.
Wines are sold at auction either for the purpose of drinking or collection. Drinking wines generally sell for less than $150, collector wines generally sell for $150 and up. If you are looking for collector wines, they are sold mostly by the largest auction houses. Collector wines are where these companies make most of their money, as they tend to lose money on lesser lots. Sothebys, Christie’s, Acker Merril & Conduit, Bonhams & Butterfield’s and Chicago Wine Co. are some of the most prominent and usually hold auctions about every two months. Saturday mornings are a popular time for wine auctions and the auction houses release a catalog about two weeks before a sale.
Lot sizes generally vary from 1 to 24 bottles. Mixed lots are good in that they tend to sell less than what the lot is worth, bad in that you'll end up buying wines that you don't want in order to get the ones you do. Sometimes when there are successive duplicate lots the winner may purchase the duplicate lots for the same price. The idea behind this is to drive up the price of the first lot. Sometimes this works, sometimes it does not.
Collector wines can sell for outrageous prices at charity events. It is not unusual for a wine to be sold many times at different charity auctions. In these scenarios the objective is to raise money for charity rather than to get a bargain. There is a chance of getting a bargain at a charity event if there aren't too many people there who are knowledgeable about wine, but this is rare.
If you're looking for drinking wine you can find both old and recently released wines, usually much cheaper than retail. It's fantastic when you can find wines that are 8-20 years old selling for less than a current release of similar quality. The older wines may even be of superior quality. Of course, bear in mind that there is an element of risk in that you can't be certain about storage history, how the wines were transported from the winery to the cellar, etc.
Before placing a bid you should always take into consideration where the wine came from. Some lots state the provenance: e.g. Property of an estate in New Hampshire (kept in temperature controlled storage facility), other lots may not provide any information about their history. In this case it is up to you to examine the bottles and make inquiries about the lot's history. This uncertainty is simply a risk you take, especially when buying older wine where the full provenance is difficult to determine.
Another important factor to consider when evaluating a lot is "Why is this wine for sale?". Wine is sent to auction for many reasons. Perhaps it is an estate sale of a longtime collector. Perhaps it is a surplus from an event where less wine was consumed by the guests than the host anticipated. Watch for lots where an odd number of bottles are being sold (11 or 23) It is possible that the person selling the wine tried a bottle and simply did not care for it. It can also be an indication that the wine could be past it's prime or damaged.
The auction houses hold pre-auction tastings from two hours to five days prior to the auction. These tastings are well worth the cost, you should always try to attend. Not only will you enjoy tasting the wine and socializing with fellow wine lovers, it will help you get the best value when making your bid.
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