WINE buffs are calling Bordeaux’s 2005 vintage one of the greatest of all time, but investors are being warned that they will have to pay through the nose for it, making it harder to turn a profit.

The wine trade has just returned from its annual tasting in Bordeaux, where the previous year’s harvest is first sampled. Producers will gauge the response in the coming weeks, and most will set their prices next month.

So far, the 2005 vintage has received rave reviews. “It was fantastic. It is top-class,” says Donal Morris, of Greenacres, a Wexford-based wine merchant. Morris spent four days in Bordeaux earlier this month, tasting new releases with his business partners, James and Paula O’Connor. “We tasted all the ‘first growths’ (the top tier of Bordeaux’s wines), including Pétrus, and it was a shame to spit them out,” he says.

A full report of the wines they tasted, along with list prices as the producers release them, is available on the firm’s website, www.greenacres.ie.

Stephen Browett, of Farr Vintners in London, says: “There can be no doubt that 2005 is one of the greatest vintages ever produced in Bordeaux. We recently returned from tastings in the region and were stunned both by the consistency of the vintage and by the overall quality.”

Other connoisseurs believe, however, that some chateaux have let down the rest. Alan Rayne, chairman of Magnum Fine Wines, says: “While the 2005 vintage is very good, there are a number of chateaux across the board that are not up to scratch, especially in St Emilion.”

Whatever the overall quality, most commentators agree that prices will hit record levels this year. “The first growths will be released at crazy prices,” says Morris, “as will the ‘super seconds’. The American buyers were there in force this year, as were the Japanese, who weren’t so prominent last year. So that should drive up prices.”

James Miles, of Liv-ex, the London International Vintners Exchange, says: “Given the hype, prices for the top chateaux are likely to be the highest ever. The global economy is riding high, financial markets are buoyant and new markets are opening up in Russia, China and South America. Many new billionaires have been created over the past five years and they want the best chateaux, no matter what they have to pay.”

Once prices are released, investors have the opportunity to buy en primeur — while the wine is maturing in the barrel. It will not be bottled until the end of next year and will not be shipped out of Bordeaux until the following spring.

The advantage of buying en primeur is that you are getting in early. Investors hope that once the wine has been bottled, prices will have soared.

The precedents from other top vintages are good: some wines from the much-lauded 2000 vintage are trading at up to four times their en primeur price, according to Greenacres. Wine from the 1982 vintage bought from one of the top chateaux, such as Lafite, has had an annual return of 13.5% since 1983, according to Bordeaux Index, a UK-based wine trader.

“If you are buying as an investment, and you have the money to invest in ‘first growth’ wines, I’d always recommend that, as the prices will only go one way,” says Morris.

However, top chateaux, such as Latour, are likely to be out of most buyers’ reach this year. Top of the price pile will be Pétrus, a case of which is likely to cost up to €20,000.

A case of Château Lynch-Bages (established by a Galway family who fled to Bordeaux in the 17th century) will be much better value at about €450, according to Morris. Investors seeking good Pomerol wines might also look at Château La Fleur Pétrus, which has already been released at €795, and which scored extremely highly with the experts this year.

“If you are buying for investment purposes, the advice is usually to stick to the top names,” says Browett. “This year, however, prices are expected to be staggering, and it is debatable whether they will be good investments. There is certainly a case for buying second-tier wine instead.”

But, adds Browett: “If you can buy a great vintage en primeur for half the price of the mature version, you are getting good value. So if a mature Château Latour would cost £4,000 (€5,800) per case and you can get it en primeur for £2,000 (€2,900), you are getting a fair deal.”

If you buy en primeur, list prices will normally include insurance while it is matured in the barrel and storage in Bordeaux. Once the wine is shipped to Ireland, it will be held in a bonded warehouse, so duty is not payable then.

Importers such as Greenacres usually charge about €42 per case for wines bought en primeur. This covers duty when the wine is taken out of storage, transport and insurance, and is payable on delivery in about two years’ time. Vat (21% of the list price) is also payable then.

To maintain the value of the wine, evidence of proper storage will be required by potential buyers. Most traders will store wine for about €10 per case per year.