Fine wine’s benchmark index, the Liv-ex 100, closed October at 372.44 – an all-time high – during its most bullish period to date.
- The industry benchmark, the Liv-ex Fine Wine 100 index, set a brand new record in October.
- Fine wine prices have risen consistently over the past 17 months.
- The price performance of high-end Burgundy pushed the index upwards last month.
Fine wine market becomes more bullish
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. As was reported at the start of last month, the Liv-ex 100 returned to its 2011 peak on the back of a strong September trading period. With activity staying high in October, that decade-old record has now been surpassed.
What is more, fine wine prices have been rising consistently over the past 17 months. This is the longest bullish period in the fine wine market to date. The upward direction of prices usually indicates high investor confidence and a healthy market.
Another sign of the market’s buoyancy is its increased trading activity, as discussed in a post last month.
The Liv-ex 100 index, which can be found on Bloomberg terminals, was officially launched in December 2003 and backdated to July 2001. In its first two decades, it has increased 272.4%, survived three global financial crises, and returned more than the S&P 500.
Burgundy pushes price performance
Burgundy, which experienced a price slowdown in 2020, has returned in full force in 2021. The chart below shows the price performance of the best performing wines from the region that pushed the market upwards in October.
*made using the Liv-ex charting tool
Armand Rousseau, Chambertin 2015 was the biggest mover, up 13%. It was followed by Domaine de la Romanée-Conti, Richebourg 2014 and Domaine Leflaive, Chevalier Montrachet 2016, both up 11%.
Up 9% were François Lamarche, La Grande Rue 2015 and Domaine Leroy, Vosne-Romanée Les Beaux Monts 2015.
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.
About 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.
The reason for this is because other sources of fine wine price information and indices base their calculations on list prices. These are advertised prices, often collected from sellers who may be advertising wine that they don’t even have in stock. There is no firm commitment to buy or sell at an advertised price. The real value of the wine may be higher or lower than listed.
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. All transactions are standardised by condition and tax status, allowing you to make like-for-like comparisons. Our members value this because it is real, proven price information.
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