Liv-Ex Index Up On Euro Depreciation & Dollar Strength

The following was kindly provided to Wine Industry Insight by Liv-Ex

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 Fine Wine Market Changing

There has been much discussion about a change in direction for the fine wine market.

In 2009, fine wine prices surged due to increased demand from Asia following the removal of tax in Hong Kong and fiscal stimulus in China but later fell following government clamp-downs on gift giving.

After four consecutive years of declines the industry benchmark – the Liv-ex Fine Wine 100 – is showing tentative signs of recovery.

The index rose from its July 2014 lows to close the second half of the year up 1.9%. In January this recovery accelerated – the Liv-ex 100 climbed another 1.9%, its largest one month gain in two years.

Euro Declines bringing US & Asian buyers back into the market.

Although the index is calculated in Sterling, the recovery is perhaps better understood when viewed in Euros and Dollars. While prices have risen in Sterling, they look cheaper still in Dollars, bringing American and Asian buyers back into the market.

It may be early days for the recovery, but the ECB and the Fed are certainly playing their part

January month on month changes:
GBP: 1.9%
EUR: 5.7%
USD: -1.4%

Liv-ex MD and Co-founder, James Miles said:

“The fine wine market closed 2014 down for the fourth year in a row: an unprecedented series of declines.

“However, confidence in the market appears to be returning with the Liv-ex 100 increasing for 6 months in a row since its low in July.

“In January the index was up 1.8% on record volumes for the exchange.

The weakness of the Euro and a busy market ahead of the Chinese New Year have certainly been contributing factors, together with a sense that there is some value in the fine wine market at these levels.”

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For further information, data or comment, please contact:
Miranda Cichy: miranda@liv-ex.com (+44 (0)20 7062 8777)
Sarah Phillips: sarah@liv-ex.com (+44 (0)20 7062 8798)