- The rising value of bids and offers on the exchange points to a healthy market.
- The record number of wines trading highlights the broadening definition of what constitutes a fine wine.
- More participants, means more eyes on the market and in turn, more trading opportunities.
This week, exposure on the exchange – the total value of firm bids and offers – reached an exciting milestone of £100 million (135M USD / 119M EUR/ 1,055M HKD).
This means that Liv-ex members now have access to over £100m of wine that can be bought or sold instantly on the most liquid and most active trading platform for wine.
With over 16,000 active markets from regions across the world, members can offer their customers an unparalleled choice – from everyday drinking wine, to the finest and rarest money can buy.
Signs of a healthy market
As the chart above shows, exposure has risen steeply over the past decade. Recently, both bids and offers have been on the rise, adding to the market’s liquidity.
This month the bid to offer ratio reached 1:77. Historically, a bid:offer ratio of 0.5 or higher has indicated a positive mood in the market.
More wines trading than ever before
This record exposure is in part due to the evolution of the secondary wine market over the years.
As shown in the chart below, a record number of wines traded in 2021, highlighting the broadening definition of what constitutes a fine wine.
The number of regions trading has also increased exponentially. Wines from Armenia and Crimea traded even for the first time ever last year.
This broadening of the market is not just across new regions but also within existing ones too. Burgundy, for example, has seen the biggest increase in wines trading year-to-date, as well as being the region with the highest number of wines trading.
Burgundy exemplifies the case of diversification within the region itself, as buyers seek value among different price tiers which enables new domains to enter the secondary market.
This increasing demand for variety can be seen by the number of wines (measured by LWIN11s) with an active market – either a bid or offer against them – shown in the chart below.
You can find more information on the trends that shaped the fine wine market in 2021 in our report, here.
More members means more opportunities
The rise in trading activity is also a result of increased market participants.
Liv-ex currently has over 560 merchant members that range from ambitious start-ups to established merchants. Together they make up the largest pool of trusted wine merchants worldwide.
With all these eyes on the market – and their customer’s eyes too – there are more buying and selling opportunities than ever before.
Liv-ex analysis is drawn from the world’s most comprehensive database of fine wine prices. The data reflects the real time activity of Liv-ex’s 560+ merchant members from across the globe. Together they represent the largest pool of liquidity in the world – currently £100m of bids and offers across 16,000 wines. Independent data, direct from the market.
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