Active Markets and Spreads

2012 may not have been an easy year for the fine wine
market, but the two charts here certainly provide reason to be cheerful. Liv-ex
now has 430 merchant members in 35 countries, and their level of engagement
continues to grow. The number of active markets and the number of spreads on the
exchange hit a new high last month.  

There are currently more than 3,500 bids and offers on Liv-ex,
reflecting a broadening market. Exchange turnover reached a yearly high in
March, while the total exposure (shown below) has been rising since August 2012
and now stands at over £21.5million. 

Total Exposure

These are positive signs, but while the closing level of the
Liv-ex 100 Index in March showed another
monthly rise
, it remains 23% below its peak of June 2011. All eyes now turn
to Bordeaux 2012. If they price it right – and this is by no means guaranteed –
the market will continue to broaden and deepen to the benefit of all.