Previously, we observed the relationship between the bid:offer ratio – the total value of bids on the Exchange divided by the total value of offers – and the movements of the fine wine market. Historically when the bid:offer ratio moves up, the market has followed. But how does this look when broken down by region?

As the chart above shows, the Rest of the World is the only category to see its bid:offer ratio increase over each of the past three years. As shown below, the Rest of the World 50 has also been the best performing sub-index of the Liv-ex 1000.

In contrast to this, the bid:offer ratio for Rhone wines has been consistently dropping – and the Rhone 100 has been the weakest sub-index.

What does this mean for Bordeaux? Its bid:offer ratio remained the same in August 2014 as in August 2013, but had doubled by August 2015. The Bordeaux 500 has shown signs of recovery, gaining 1.6% over one year after three consecutive years of decline. With demand in the marketplace increasing, will prices soon follow suit?