This summer, Liv-ex reviewed how Market Prices are calculated. The algorithm changes have resulted in a significant increase in the number of wines with a Market Price, and prices that are more up-to-date. This is particularly true of older and rarer wines.
Key changes
Essentially, the Market Price is the best listed price for a wine in the secondary market. Tax and duty are excluded. It’s drawn from the lowest price advertised by leading stockholders, mostly in the EU. Historically, this was based on wines in 12×75 or 6×75 packs.
From this summer, wines packed as 3×75 are also used in the calculation. Additionally, machine learning is used to detect when a wine has become so rare that single bottles represent a significant proportion of the market. At this point, single bottles will begin to influence the Market Price.
For US wines, US merchant prices are now included. This has contributed to the rise in data on US wines.
Market Prices are still based on lists from major stockholders. This makes benchmark prices from Liv-ex more accurate than other sources.
The results
Since the changes have been brought in:
- 19% more wines have a Market Price.
- 33% more Market Prices are from lists processed in the last 35 days
- 133% more US wines have Market Price
The biggest improvements have been for old and rare wines.
Examples
The charts below show the Market Price history for wines before and after the changes were introduced.
Chapoutier, Ermitage Pavillon 1990
Before
After
Guy Roulot, Meursault Charmes, 2010
After
The impact has been smaller on more liquid wines, such as Pontet Canet 2010.
Before
After
Get Liv-ex Prices
If you are a Liv-ex member, you have access to these prices. You can also share them with your own private client customers for valuations or other purposes.
Often the most efficient way of recieving price information is via an API or data feed. You can use these to display price information in your own systems or to quickly create valuations.
You can also get prices in bulk using Wine Matcher. Wine Matcher is a browser-based tool with zero start-up costs. You just need to log in. For more information on Wine Matcher, click here.
If you are a Liv-ex member with questions on this, please speak to your Account Manager. If you are interested in joining, contact us.
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