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Wednesday, 4 January 2012

Liv-ex: fine wine prices fall by 15% in 2011

From the Liv-ex blog:

'The Liv-ex Fine Wine 100 - the fine wine industry's leading benchmark - fell 3.90 per cent in December. Having declined for six consecutive months, the index closed at 286.33 - down 14.85 per cent for the year.'

Read the rest here.

Good analysis of these figures by Chris Kissack, the Wine Doctor here.

15 comments:

  1. you coments are wrong due to the fact that some 08 wines have dropped by 50% and bring the true figure down to 25% loss

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  2. Anon. Thank you – I assume that you mean that Liv-ex's comments are wrong.

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  3. yes this is also confirmed by Decanter

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  4. It all rather depends upon which of the various indices are chosen.

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  5. their are statistics, more statistics and lies, figures can be manipulated to show whatever you desire the Government does it all the time

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  6. A 15 per cent fall is negligible when you consider that over the previous 2 years the same index rose by 75 per cent. Even with the dip investors have still made 50 per cent in a little over 2 years. And looking at the progress of the market this year (the top 50 up over 1 per cent yesterday alone)it seems very likely it is on the way back up again, just as it did after the last - and almost identical - dip in 2008, the one that preceded the 75% rise over the next 24 months.

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  7. Anon. Little doubt I think that long-term the trajectory is up, whether the recent dip proved to be identical to 2008 remains to be seen.

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  8. Which is fine, because the long term trajectory is all that counts or matters: Anyone investing in fine wine should always be clear that it is a medium to long-term market. Wine needs to be given time to ride-out the storms - which it always does - and those investors who panic sell when the market periodically slides would do well to remember this.

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  9. So there's more than 1 index to go by, that's quite confusing jim quite confusing... Anyhow the bottom line and you know it is you can charge what you like for a product and be committing no crime none..... That's why companies like those mentioned in various threads on this blog exist because they can't be accused of frog marching anyone down the bank with there arm up there back, investors can put the phone down as I did..... I'm with e"on ( if that's the correct spelling ) and the cold calls I receive off British gas are ridiculous, convincing as they are I'm happy with the company I'm with....I think we all know there are more holes in your investment rules and regs ( again if that's what to call them )...than there are in my nans siv...the only rule that really should be strictly followed is make sure the product you buy you receive, and use your own good judgement with regards to price.....do your research remember the lauded wine searcher . Com Is quite Mis-leading as most companies take 6-12 weeks to even source the wine.....regards....hope you post this jim

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  10. They come and they go!!!!!!!


    Name & Registered Office:
    UK FINE WINES LTD
    TOWER 42
    OLD BROAD STREET
    LONDON
    UNITED KINGDOM
    EC2N 1HQ
    Company No. 07483335




    Status: Active - Proposal to Strike off
    Date of Incorporation: 05/01/2011

    Country of Origin: United Kingdom
    Company Type: Private Limited Company
    Nature of Business (SIC):
    None Supplied
    Accounting Reference Date: 31/01
    Last Accounts Made Up To: (NO ACCOUNTS FILED)
    Next Accounts Due: 05/10/2012
    Last Return Made Up To:
    Next Return Due: 02/02/2012
    Previous Names:
    Date of change Previous Name
    14/10/2011 UK FINE WINE INVESTMENTS LTD
    UK Establishment Details
    There are no UK Establishments associated with this company.
    Oversea Company Info
    There are no Oversea Details associated with this company.

    Type Date Description Order
    DS01 19/01/2012 APPLICATION FOR STRIKING-OFF

    CERTNM 14/10/2011 COMPANY NAME CHANGED UK FINE WINE INVESTMENTS LTD
    CERTIFICATE ISSUED ON 14/10/11

    RES15 14/10/2011 CHANGE OF NAME 11/10/2011

    CONNOT 14/10/2011 NOTICE OF CHANGE OF NAME NM01 - RESOLUTION

    NEWINC 05/01/2011 CERTIFICATE OF INCORPORATION
    GENERAL COMPANY DETAILS & STATEMENTS OF;
    OFFICERS, CAPITAL & SHAREHOLDINGS, GUARANTEE, COMPLIANCE
    MEMORANDUM OF ASSOCIATION

    LATEST SOC 05/01/2011 05/01/11 STATEMENT OF CAPITAL;GBP 1

    MODEL ARTICLES 05/01/2011 MODEL ARTICLES ADOPTED: PRIVATE LIMITED BY SHARES

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  11. January's results indicate that the market is on the way back up: This from Liv-ex this morning, 1st February.

    Measured by several metrics, January finished on quite a high. The Liv-ex 50 closed at 340.82, up 1.87% for the month- the first monthly gain since June last year. (The Liv-ex 100 will be published later today). Transactions for the month were the second highest ever recorded. The highest was in October 2010- the beginning of the final quarter, which saw a 9% surge in the Liv-ex 100. Active spreads on the exchange (wines with both bids and offers) finished the month at 431, up 70% on January 2011. Bids climbed a further £500k for the week to touch £4.5m.

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  12. The rest of the indices are also all up in January:

    Liv-ex 100 - up 1.39%

    The Liv-ex Claret Chip Index - up 2.04%

    The Liv-ex Fine Wine Investables Index - up 0.50%

    The Liv-ex 50 - up 1.87%

    This would perhaps suggest that now would be a good time to buy fine wine - perhaps the best opportunity since January 2009?

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  13. "It all rather depends upon which of the various indices are chosen"

    More grey areas from Mr Budd....

    Kudos zero
    Creedance Zero
    Endorsement Zero

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  14. Comment from Liv-ex today:

    Fine wine benchmark rises for first time in six months
    After falling for six consecutive months, the Liv-ex Fine Wine 100 posted a rise in January. The index, which is widely considered to be the fine wine industry's leading benchmark, rose 3.97 points (1.39 per cent) to 290.30.
    Liv-ex Director Justin Gibbs commented,
    "This is welcome news for the wine market. While a single month's data does not confirm a change in trend, the rise in prices combined with the uptick in transaction volumes suggests a definite lightening of the mood."

    A decline in demand for top-end Bordeaux (most notably the Bordeaux First Growths) resulted in a price correction in the second half of 2011. First Growth losses weighed heavily on the Liv-ex Fine Wine 100 and the index fell 20 per cent in the six months to 31 December.

    Since the start of the year, however, a stabilisation in the price of the First Growths has seen the market turn positive.

    Gibbs added,
    "If the market can hold this level in the run up to the Bordeaux 2011 release in May, and assuming that the vintage is released at sensible prices, then one would expect some bullish sentiment to return."

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  15. Exactly Jim - which confirms my comment that January's results indicate that the market is in all probability on the way back up following a natural correction.

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