Liv-ex reported record levels of trade, supporting continued strong growth

Liv-ex reported record levels of trade, the highest trade by value in a single month on the exchange since July 2011, in October 2020, and the trend continues to rise in November. In the week to Friday 13th, the fine wine exchange recorded its all-time highest exposure with live bids totalling £30million and offers £50M up 27% and 14% respectively year-to-date.

The recent regional market share data illustrates the continuing broadening market in 2020 with Bordeaux now routinely accounting for less than 40% of overall trade value on the exchange month on month. This is due to the significant overall growth in trade and in the number of new labels now being transacted on Liv-ex from Italy, Champagne and the USA, all of which have benefited strongly to investor demand in 2020.

Market share of trade on Liv-ex October and November 2020:

Region 6th – 12th November 2020 inc. October 2020
Bordeaux 37% 36.2%
Burgundy 28.8% 19.6%
Champagne 8.3% 9.3%
Italy 14.2% 14.9%
USA 6.5% 10.8%
Rhone 2.9% 4.0%
Others 2.9% 5.2%

Source: 13.11.2020

Purchases for the Festive Season influenced the fine wine market last week with white Burgundy notably in demand and accounting for 7.1% of the trade from that region on Liv-ex. Investment wines in demand were led by Bordeaux First Growths which accounted for 44% of the region’s trade by value.

Bordeaux First Growths

Wine vintage Last traded price (12 x 75cl)
Chateau Lafite Rothschild 2006 £5,680
Chateau Mouton Rothschild 2010 £5,560
Soldera Carre-Basse, Toscana 100% Sangiovese 2014 £3,888
Duhart-Milon 2010 £803
Petrus 2006 £20,500

Source: 13.11.2020

Chateau Duhart-Milon, not a ‘staple’ investment wine, shows the accessibility of some fine wine which can offer returns, when bought at the right time of course. Its 2010 vintage has seen a price growth of 79% since 2014 and has benefitted from a recent rescore by Neal Martin to 93 points, stimulating fine wine buyers.

Iconic Bordeaux wines such as Petrus and the Left Bank First Growths are key components of a fine wine portfolio as they provide liquidity and long-term excellent value, especially at some of the prices currently available.

Liv-ex reported record levels of trade, supporting the strong opportunities for investors. For more information on which wines to invest in now contact our team on 0203 384 2262.