Why bid:offer ratios?
The value of bids over value of offers for a given wine or index serves as a reliable predictor of its future price performance. Though we have proved this statistically, it also makes intuitive sense: where there is strong demand relative to supply, prices are no longer forced downwards.
Liv-ex 100’s ratio rises to 0.93
The Liv-ex 100’s bid:offer ratio continued to rise over the course of October and currently sits at 0.93, the highest recorded level since November 2022. The value of bids for its component wines has now reached £2.5 million, a return to Q1 2023 levels.
N.B. the values here are snapshots rather than an average over the course of the month
The Liv-ex 100’s bid:offer ratio remains higher than the Fine Wine 1000’s, indicating a better supply:demand balance for more sought-after wines. Nevertheless, the 1000 too saw an improvement, rising from 0.41 to 0.52 over the course of the month.
Demand for Bordeaux returns
Bordeaux made impressive gains, with the Fine Wine 50’s ratio rising from 0.56 to 0.81. Improvements in the 50’s ratio since June have been followed by bounce upward from its 2008 peak / 2015 low, adding further weight to the view that prices are now reaching heir floors.
Champagne demand returns to 2022 levels
Of the remaining Liv-ex 1000 sub-indices, the Champagne 50 continues to stand out, its ratio rising to 0.47 to 0.54 and the value of its bids now reaching 2022 levels. Dom Perignon, Pol Roger and Salon hold the highest current ratios of component wines.
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 £140m of bids and offers across 20,000 wines.
