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Weak Sterling creates opportunities for Dollar buyers
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By September 14, 2022Bronze, Market Update, Regions

Recent trading activity 

Champagne continued to lead trade in the early part of the week. Demand for Taittinger’s Comtes de Champagne 2011, Louis Roederer’s Cristal 2014 and 2013 and Dom Pérignon 2012 remained high. 

Tenuta San Guido’s Sassicaia 2018 led trade for Italian wines and Screaming Eagle 2019 for the USA. For Bordeaux, Petrus 2014, Château Palmer 2010 and Château Mouton Rothschild 2007 where in the spotlight.  

Stronger Dollar leads to buying opportunities

The big currency news in the last two weeks was the Euro hitting parity with the US Dollar. In September last year, one Euro would have bought you US$1.18, but now they are equal. 

At the same time, the Dollar has been strengthening against Sterling. Over one year the GBP:USD exchange rate has dropped from $1.38 to $1.16. 

This drop is reflected in the prices of fine wines. Measured in Sterling, wines listed on the exchange at present are 15.9% cheaper for Dollar buyers than they were in December of last year. 

The Euro has also strengthened against Sterling over this period, the GBP:EUR going from 1.17 to €1.15, a drop of close to 3%. 

All of this is good news for fine wine buyers and collectors whose principal currency is either the Euro or US Dollar (especially the latter). 

Historically, downturns in the value of Sterling have provided a boost to the secondary market as it means fine wine prices look much more affordable to non-Sterling based buyers. 

The table below shows a selection of wines currently listed LIVE on the exchange. As a result of Sterling weakening against other currencies, some of the wines are now cheaper in USD and EUR than they were six months ago despite no changes to the GPB price during this period.  

*prices shown are Market Prices. Unless otherwise stated, it is standardised to 12x75cl.  

Opportunities to buy fine wine 

 

There are over 20,000 LIVE bids and offers of the exchange, spanning the entire length and breadth of the wine producing world. 

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 600 merchant members from across the globe. Together they represent the largest pool of liquidity in the world – currently £80m of bids and offers across 16,000 wines. Independent data, direct from the market.