What’s happening in the market?
Bordeaux has shown growth in its share of trade by value, reaching 37.2% after the close of trading on Tuesday. This increase in activity can be attributed to the trading of wines from Château Lafite Rothschild and Château Haut-Brion.
Similarly, Piedmont is gaining momentum. The region’s trade share from Friday through to Tuesday has climbed to 4.4% after ending last week at 3.6%. This uptick is mainly driven by the trading of wines from Giacomo Conterno and Produttori del Barbaresco.
Champagne remains a popular choice among traders, with Louis Roeder Cristal 2013 and 2008, as well as various vintages of Pol Roger Sir Winston Churchill changing hands. However, the region’s trade share has seen a slight decline, now standing at 19.1% after ending Monday at 22.1%.
Today’s deep-dive: Seizing opportunities with bold bids
‘Fortune favours the brave’ and Warren Buffet’s ‘Be fearful when others are greedy and greedy when others are fearful’ are clichés for a reason – they often turn out to be true. Instead of churning out more gimmicks, today we’re illustrating how one Liv-ex member embodied this attitude and successfully navigated the current downturn to their advantage.
In June this year, the Liv-ex Fine Wine 1000 recorded a 2.4% decline, bringing the index’s year-to-date performance to -6.8%. At that time, a Liv-ex member took advantage of the low prices in the market and turned this downward movement in the market into a golden opportunity.
As shown below, by gradually increasing their bidding exposure to upwards of £7 million – therefore increasing their chances of acquiring wines – they significantly increased their total purchase value.
But that’s not all. During this six-month period, this merchant achieved an average purchase price 10.65% below the acquired wines’ Market Price, with 31.2% of their purchases made at a 15% discount to the wines’ Market Prices.
Given the current challenging market conditions and the major indices’ volatility, which may indicate an impending market shift, those who strategically place bold bids could be rewarded with advantageous trade prices.
With over £95.6 million of live offers on 12,582 LWIN11s available on the exchange, bidders are presented with more opportunities than ever before. Log in to Liv-ex to view them and trade.
In case you missed it
Here’s what we’ve been reading:
- Liv-ex: A Port in a storm: Opportunities below £500 per case
- The drinks business: ‘I have always known the potential of Ornellaia’
- Financial Times: UK economy makes stronger recovery from pandemic than previously estimated
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 620+ merchant members from across the globe. Together they represent the largest pool of liquidity in the world – currently £100m of bids and offers across 20,000 wines.