Liv-ex: Value of trades drops 19% in November 2014

By Erin Smith

Published: 10 December, 2014

According to the Liv-ex's most recent market report, "the value of trades in November was down 19% on this time last year" signalling the on-going challenge of Bordeaux's most iconic wines continually demanding the historical prices of just a few years ago.

"The Liv-ex fine wine indices held steady, but with the Liv-ex Fine Wine 100 having fallen 7.2% so far in 2014, we are headed for another year of price falls: the fourth in a row," the report stated.

The top index the Liv-ex Fine Wine 50 is also down -9.7% for 2014.

The two indices that struggled were the elite Liv-ex Fine Wine 50, which represents the top 50 most iconic wines and the values that they are trading at, and the Liv-ex Fine Wine 100 index, representing the top 100 fine wines. Other indices were fairly steady as the wines are much more diversified when it comes to the prices of the wines that make up the index.

Rhone wines appear to also be struggling as the percentage of trading dropped to a two-year low, accounting for just 0.85% of the trade last month.

Liv-Ex

It does appear that the increasing competitive global wine market and the increase of quality wines coming from less expensive wine regions is taking a toll. The value of the trades has dropped according the to the Cellar Watch market report, but volumes are actually up, further indicating that trades are happening, just not at the peak prices of the past.

"The volume was up 4.7% as lower priced wines continued to occupy traders' minds," stated the report.

While Bordeaux continues to struggles, other regions are making some head way in the fine wine investment sector such as Italy. Two years ago the to five most raded by volume were all French wines, today's wines are a very different make-up.

The report said: "This year our top five [wines] are far lower in value, and two of the wines are from Italy; Sassicaia 2011 (9th cheapest of the brand's recent vintages) and San Guido Guidalberto 2011."

Printer friendly version