- The Liv-ex 100 fell 1.3% in November, closing at 364.3. Year-to-date, the index is down 13.2%.
- All major indices were down month-on-month, hopes that the market will bottom out in 2023.
- Among the top price performers in the index were wines from Piedmont, Champagne and Bordeaux.
*made using the Liv-ex Charting Tool.
As the Liv-ex Fine Wine 100 fell once again in November, hopes of the market finding a bottom in 2023 are fading. That said, there is some comfort to be found in the fact that the 1.3% decline last month is less steep than the 1.9% fall recorded in October. Year-to-date, the index is down 13.2%.
Looking at the broader market, the Liv-ex Fine Wine 1000 (which tracks 1,000 wines from around the world) declined by 1.5%, a touch steeper than the previous month’s 1.4%. The Champagne 50 once again saw the most significant decline among the sub-indices of the Liv-ex 1000, dropping by 2.2%, a mild improvement on last month’s 2.5% fall. Once again, none of the sub-indices of the Liv-ex 1000 recorded positive movements in November.
The Liv-ex Fine Wine 50 (which tracks the movement of First Growths and is updated daily) dipped by 1.9% month-on-month compared to 2.1% in October. The Bordeaux 500 (which tracks 500 leading Bordeaux wines) fell 1.1%, an improvement on the 1.5% decline recorded the previous month.
As the downturn continues and sellers look to shift stock, buyers have their pick of opportunities – there is currently £93.3 million’s worth of offers on Liv-ex. Trade value on the exchange increased once again in November, as did trade volume. However, market breadth contracted slightly, with 2,811 individual labels (LWIN11s) trading in November, a sign that buyers are narrowing their focus onto the most ‘secure’ brands and wines.
What’s driving the index?
The imbalance observed in the index’s components in October continued in November; 59 wines saw their Mid-Prices* decline. However, it’s worth noting that more wines saw their value increase last month compared to the previous one (35 in total), while six ran flat.
The three best performing wines, all hailing from Italy, also recorded considerably higher increases than October’s top wines, notably Bartolo Mascarello 2017 which saw its Mid-Price rise 23.9% month-on-month.
At the other end of the scale featured many recent Bordeaux vintages, including Château Pontet-Canet 2019, Château Margaux 2018 and Château Mouton Rothschild 2018. We recently reported on young Bordeaux wines trading close or below their release prices as sellers look to shift their stock to generate cash and clear warehouses before the next vintage comes.
Which wines performed best in October?
*prices shown are Liv-ex Mid Prices; the mid-point between the highest live bid and lowest live offer on the market. These are the firm commitments to buy and sell at that price; transactional data rather than list prices. It represents the actual trading activity of 620+ of the world’s leading fine wine merchants. Because Liv-ex doesn’t itself trade, this data is truly independent and reliable.
As mentioned above, three of the top five best-performing wines in the Liv-ex 100 in November hailed from Italy, including two Barolos: Bartolo Mascarello, Barolo 2017 and Bruno Giacosa, Barolo, Falletto Vigna Le Rocche Riserva 2016.
The former has seen its value gradually decline since its release into the secondary market, currently commanding a price of £2,000 per 12×75. Some recent trades have taken place considerably lower, however, closer to the level of the best live bid (in green below).
Bartolo Mascarello, Barolo 2017 trades on Liv-ex
Louis Roederer Cristal 2014 was fourth on the list, its Mid-Price rising 6.0% month-on-month. Cristal 2014 was the most traded wine on the exchange in 2022; this year, the wine’s 2015 vintage has taken the lead, surpassing Dom Pérignon 2013 which topped the rankings for much of the year.
Château Lynch-Bages 2010 completes the top five. The wine has recorded sustained levels of trade since its release in 2011 at £1,220 per case, dipping considerably until January 2016 before rebounding. Currently, it is trading around £1,375 per 12×75.
Château Lynch-Bages 2010 trades on Liv-ex
What is the Liv-ex 100 index?
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 world’s most active and liquid marketplace from France, Italy, USA, Australia and Spain. Stretching back over 20 years, the Liv-ex 100 is quoted on Bloomberg and Reuters screens.
All Liv-ex indices are calculated using our Mid Price; the mid-point between the highest live bid and lowest live offer on the market. These are the firm commitments to buy and sell at that price; transactional data rather than list prices. It represents the actual trading activity of 620+ of the world’s leading fine wine merchants. Because Liv-ex doesn’t itself trade, this data is truly independent and reliable.
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