Definition: Auctions

1) The selection of upcoming sales, then

2) Examining the catalogues, which include a detailed description of the lots, the bottles on offer, the estate, details of the bottling (château or négociant - important for older vintages), vintage, format, condition (labelling - condition of the label - some enthusiasts are very particular, especially when it comes to the famous bottles of Château Mouton Rothschild) and the level of wine in each bottle, type of packaging (original wooden cases are more prized than cardboard boxes), and finally the estimated market value of the lot, generally with a range between the minimum starting price and the estimated price. Lots may consist of a single case of the same wine, bottles from different sources, different vintages, or a single collector's bottle. Anything is possible. The important thing is to study the catalogue carefully, because when the time comes, everything happens very quickly during the sale.

3) Exhibition of lots. The wines are usually exhibited a few days before the sale, in a warehouse or at the sale venue itself. This is the only way to form an opinion on the actual condition of the bottles, as the fill level in relation to the vintage is by far the most useful criterion for determining whether the wine has been stored in optimal conditions. The exhibition is all the more useful as the lots are rarely presented at the time of the sale.

4) The sale itself, with the auctioneer announcing the lot number, often accompanied by a description provided by an expert. It is best to have attended the exhibition and studied the characteristics of the lots you intend to bid on. Sometimes the expert announces changes to the information listed in the catalogue, or even the withdrawal of a lot from the sale. The auctioneer then conducts the bidding. It is important to distinguish between the estimated price and the auction price. Both prices are set by the expert. The estimated price corresponds to the objective value of the lot, taking into account market trends, excluding auction fees. The auction price is the starting price of the sale, which can be around 60% of the estimated price.

5) Payment and delivery. At the hammer price, you will have to pay an additional sales fee of around 15 to 20% of the hammer price (auctioneers are now free to set the amount of fees charged on purchases), after which the buyer takes delivery of their goods. In the event of a problem, if the lot does not match the description in the catalogue, which may have been modified by an announcement made by the expert in the room (hence the importance of being present in the room), you have the right to return the lot to the auctioneer, who is solely responsible for the sale and will be required to refund you. However, all other defects, such as cork taint, suspicious odour or stale wine, are not covered. You should therefore be very cautious with older vintages and very low levels.

Private individuals rarely purchase bottles costing more than £60 to £80. Above that price, it is generally wine brokers, catering professionals or wine merchants who handle large transactions. Lots are often immediately resold for export (Asia, North America). By joining forces with solvent friends, you can purchase a high-priced lot that would be virtually inaccessible on an individual budget and share it among yourselves.

Bordeaux wines represent the bulk of the market, but all the grands crus from all the recognised vineyards are traded well at auction. Don't forget vintage ports, which offer a great deal of security due to their very long ageing potential.

To sum up, here are the twelve golden rules for beginners:

1) Choose your auction house carefully.

2) Study the catalogue carefully.

3) Identify the lots that particularly interest you.

4) Visit the lots on display beforehand.

5) Consult the expert or auctioneer about the likely actual quality of the lots.

6) Make clearly visible notes in the catalogue for the lots you wish to bid on.

7) Set your maximum bid and stick to it.

8) Bid the first time when the bids are still low. This is a way to gain confidence and relieve beginner's stress.

9) Attempt to acquire a lot without bidding. Example for a lot offered at £200: you can announce "£200, sold" without bidding. If no one else bids higher, the lot is yours.

10) When several identical lots are for sale, there is no point in focusing on one or

first two lots that are going up; move on to the next one (unless the auctioneer

has announced that the lots may be combined, in which case the buyer of the first lot may

exercise this option on all subsequent lots at the same price).

11) It is better to take an interest in several lots during the same sale than to focus

your interest on a single lot, with the risk of paying too much for it.

12) Carefully check the rating of the wine you are about to purchase. Estimates

can vary significantly from one expert to another, especially for older wines

old wines and recent wines that are highly speculative.

Risks to avoid:

- Not all grands crus that are highly prized abroad and intended for export are necessarily a good buy at the moment (09/2004), although the market in London, for example, is currently lower than in France for a number of Bordeaux wines.

- Overbidding on old Burgundy vintages can lead to

disappointment in terms of their preservation.

- Interest in fine Rhône wines, whose prices have risen too high (2004).

You may not like old champagnes. They are best left to international resellers, who are snapping them up.

Also note that vintages considered mediocre (1987, 1993 and 1997 for Bordeaux, for example) are currently (09/2004) available at rock-bottom prices. They may hold some very pleasant surprises when tasted.

By following these guidelines and placing your orders with an auction house renowned for its reliability, you can trade with confidence and satisfaction.

See also: auctions (sales at) and auctions of bottled wines (importance of).