This month, exposure – the total value of bids and offers on Liv-ex – has reached record levels. It has risen steeply over the past decade, and has doubled in the last three years, as the chart above shows. It now stands at just over £50million.
This is roughly a £6million increase since our last update in October last year.
Recently, both bids and offers have been on the rise. The bid:offer ratio (i.e. the total value of bids divided by the total value of offers) has remained just above 1 and currently stands at 1.09. A bid:offer ratio of 0.5 or higher has historically indicated an uptrend in the market, or at least acts as a signal for price stability.
Another factor at play is the changing secondary market for fine wine. The market has been growing and broadening, with a record number of different wines trading. This is a theme that we will explore when our annual Power 100 list is published in the coming weeks.