Liv-ex is often asked to explain the methodology behind its
prices, and why its data is the industry standard. A few months ago we expounded
upon the Liv-ex Mid-Price,
which is used for creating mark-to-market valuations for the world’s major fine
wine funds. In this blog we turn our attention to the Market Price.
The Market Price is an indication of the price you are
likely to pay for SIB-compliant
stock, off the exchange. The price given is for a 9-litre case, and is based on
the cheapest 6 and 12-pack wholesale prices advertised by leading merchants in
the EU. (Where appropriate, alternative unit sizes are used for the calculation
and then converted into a 9-litre format – such as for single bottles of rare
Burgundies or half bottles of Sauternes.)
The Market Price is
shown above in blue. Liv-ex trades are in red.
Liv-ex collects price data from its membership base of 430
merchants worldwide; these merchants account for the vast majority of global fine
wine turnover. The data is cleaned and sorted by merchant region, merchant
type, and how regularly lists are updated. We then cross check lists to ensure
accuracy. From this we create a top tier of merchants whose lists are used to
find the Market Price. We regularly review this Tier 1 group to ensure that we
have as full a data set as possible. Market Prices are updated every time a new
price is received, ensuring that our data is not only the most comprehensive
but also the most current. If no new
prices are found, the calculation stays the same.
Last week Liv-ex launched Liv-ex Badges.
This is the official way for subscribers to Liv-ex services to promote their
use of Liv-ex data, and the most accurate fine wine prices available. The "Prices from Liv-ex" badge tells you that
a company has subscribed under license to publish the Market Price, or has subscribed to the Online
For more information on our prices, badges or data feed
products, please get in touch.