A key (but sometimes overlooked) part of the service we supply to our subscribers is the Liv-ex Relative Prices functionality. This web page enables Cellar Watch subscribers to accurately compare and contrast the performance of wines, equities, selected commodities and Liv-ex indices over time.
Relative price charts and tables allow for easy comparison, and all data can be downloaded from Liv-ex.com in Excel format. Two main types of calculation are used – rebasing and ratios – and all of the price data can be viewed in seven major currencies. Any time period can be charted (as long as we have the data) with the financial series starting in January 2000 and fine wine prices usually going back to the wine's initial release.
The graph below, which tracks the performance of the Liv-ex Claret Chip Index relative to gold over the past year, is an example of charting "rebased" data – with both data series given a value of 100 in August 2009. As you can see, both wine and gold have seen positive returns since August 2009, though gold appears to be zigzagging its way from one high to the next whilst the Liv-ex Claret Chip Index – made up of top-rated First Growths - has followed a more consistent curve upwards. The index touched 366.6 on Friday – up 0.41% on the previous week.
Individual wines can also be compared. This chart shows the historical price ratio of Lafite Rothschild 2000 to Mouton Rothschild 2000 since August 2005. Having traded at a similar price level five years ago, Lafite Rothschild is now £10,000 more expensive than its First Growth peer. As such, the ratio of Lafite 2000 to Mouton 2000 is currently 2.29 – higher than the historical average ratio represented by the green line. Last month the ratio drifted slightly following the loss of Lafite 2000’s perfect Parker score, which saw Lafite prices edge below £18,000 whilst Mouton continued its steady rise.
The relative prices functionality can also be used to compare the movement of individual wines with that of the market. Carruades de Lafite 2005’s rapid rise over the past few months appears even more remarkable in comparison with the Liv-ex Fine Wine 100 Index. Since April, the wine has risen in value by almost 40% – significantly outperforming the benchmark fine wine index, which has risen by 6%.