Grapevine: The Conflicted World of Collecting High-end and Rare Objects
We live in a society that knows no bounds in taste for revered objects. And there are those who have an insatiable craving to own the precious objects that reflect a refined palate, or a self-indulgent, self-aggrandizement.
In many cases, the desire to own highly regarded objects goes unrequited for lack of financial wherewithal. For others, money is no object; they have the means, and egos, to satiate their appetites for rare or highly regarded objects.
These objects tend to center in specific hard assets, be they objets d’art (paintings, sculptures) or rare collectibles such as cars, books, coins, autographs – and wine.
As a result of the wild swings in the global equity markets during the Great Recession, a number of investors have turned to rare objects as alternative investments. There is now an index, the Knight Frank Luxury Investment Index, which tracks the changing values of defined categories of rare objects.
There have been numerous examples of the escalating value of these luxury investments, and of the high net worth investors for whom cost is no barrier for seeking self-aggrandizement. The offerings and results of Sotheby’s and Christie’s auctions over the past five years bear this out.
Last week I reported on the record-setting auction of a portion of the private wine cellar of William I. Koch. This represented a clear example of the meteoric rise of wine as a rare collectible that has tantalized the imagination of the 99 percenters and the egos of the 1 percenters.
However, it is not only the respected auction houses that offer rare wines to investors. A subculture of entrepreneurs has emerged, although quite few in number, that is capitalizing on the highly competitive rare wine market. These individuals operate in the underground world of illegal wine trafficking. There have been a number of wine thefts in the United States in the last five years, seemingly centered on specific orders for wines from wealthy investors who seek anonymity.
I’ve reported on several thefts at the hands of these underground entrepreneurs. This week I can report that arrests have been made involving one of the more infamous rare wine thefts in recent memory.
On Dec. 26, 2014, the French Laundry, located in California’s Napa Valley, one of the most highly regarded restaurants in the United States with an equally famous wine cellar, reported that its wine cellar had been broken into. There were 76 specifically selected bottles stolen. Many other, equally expensive, bottles were passed over. The estimated retail value of the stolen wines was $300,000. (Do the per bottle math for an idea of the value of these bottles.)
In January 2015, the Napa County sheriff’s office received a phone call from an attorney in Greensboro, N.C., stating that a client had purchased 66 of the French Laundry wines (identified by published serial numbers on the bottles). The buyer had wired between $120,000 and $150,000 in multiple wire transfers (under $10,000 each, to bypass money laundering banking regulations) to an undisclosed bank account. The buyer had gotten nervous about his ill-gotten French Laundry wines – and possibly other wines from the same criminal entrepreneurs – and decided to return the wines. Was the unnamed buyer a victim or an unindicted co-conspirator? A determined collector or an egomaniacal criminal?
On Apr. 26, two men were indicted on multiple charges in the French Laundry heist, as well as several other thefts in the northern California area. They each face a maximum sentence of 10 years in prison and a $250,000 fine. Neither was anticipating buyer’s remorse on their illegal sale. Stay tuned for further updates.
The rarified air of collecting rare collectibles attracts diverse individuals. Some living vicariously through the actions of others and a few “others” poised vicariously on the edge of self-aggrandizement.
Nick Antonaccio is a 40-year Pleasantville resident. For over 20 years he has conducted wine tastings and lectures. He also offers personalized wine tastings and wine travel services. Nick’s credo: continuous experimenting results in instinctive behavior. You can reach him at nantonaccio@theexaminernews.com or on Twitter @sharingwine.
