Fine wine prices have risen consistently over the past 17 months, the market’s most bullish period to date, with the Liv-ex 100 closing October at new heights.
November 2nd – London UK – The Liv-ex Fine Wine 100 index, which tracks the price performance of the 100 most sought-after fine wines on the secondary market, rose 2.2% in October to close at 372.44 – an all time high.
This is according to a recent article from Liv-ex (the London International Vintners Exchange) titled ‘Fine wine’s benchmark index sets a new record’, which explores how and why the index has set a brand-new record in October.
The article looks at the history of the Liv-ex Fine Wine 100 index, which can be found on Bloomberg terminals. It was officially launched in December 2003 but backdated to July 2001, In its first two decades, it has increased 272.4%, survived three global financial crisis and returned more than the S&P 500.
With fine wine prices consistently rising over the last 17 months, the longest bullish period in the fine wine market to date, it indicates high investor confidence and a healthy market.
Liv-ex is the London-based global marketplace for the wine trade, where 550 fine wine businesses from around the world buy and sell wine. What happens on the exchange is a reliable indicator of the health of the secondary wine market.
Burgundy pushes price performance
Though Burgundy prices slowed in 2020, they have risen sharply again in 2021. Armaund Rousseau Chambertin 2015 was the biggest mover, up 13%, closely followed by Domaine de la Romanée-Conti, Richebourg 2014 and Domaine Leflaive, Chevalier Montrachet 2016, both up 11%.
Burgundy was one of the regions hardest hit by the severe weather challenges of 2021, with yields reportedly half that of last year. Meanwhile, older vintages available on the secondary market are seeing increased demand and are subject to rising prices.
Liv-ex Indices
The Liv-ex Fine Wine 100 Index is the industry leading benchmark. It represents the price movement of 100 of the most sought-after fine wines on the secondary market from France, Italy, USA, Australia and Spain.
The index is calculated using the Liv-ex Mid Price, which refers to the mid-point between the highest live bid and lowest live offer on the market. The prices are validated against additional data including transaction prices and are the most robust measure for pricing wines available in the market.
Mid prices provide more accurate data than other data sources as Liv-ex can uniquely provide prices from real transactions among the wine trade. These are historic trade prices, as well as firm commitments to buy or sell on the market at a given price, rather than just an advertised list price.
About Liv-ex
Liv-ex is the global marketplace for the wine trade. Along with a comprehensive database of real-time transaction prices, Liv-ex offers the wine trade smarter ways to do business. Liv-ex offers access to £80m worth of wine and the ability to trade with 550 other wine businesses worldwide. They also organise payment and delivery through their storage, transportation, and support services. Wine businesses can find out how to price, buy and sell wine smarter at www.liv-ex.com.
The above press release is a snapshot of Liv-ex’s article on fine wine’s benchmark index hitting a record high.
For more information on Liv-ex membership, click here.
