The fine wine market has been on an upward trend now for eleven consecutive months. The Liv-ex 1000 Index – the broadest measure of the fine wine market – is up 19.7% over the last year. However, it has previously been observed that the market looks quite different when viewed in other currencies.
In Dollars, the Liv-ex 1000 is down 4.4% over one year. 90% of wines in the index have risen in Sterling terms, but only 35% have risen in Dollars. Given the recent Sterling weakness, viewing the Liv-ex 1000 in Dollars therefore gives a better perspective of where there is real strength in the fine wine market.
Most of the top performers this year have been the second wines of Bordeaux First Growths. As the table above shows, though their gains have been greater in Sterling, they are still up significantly in Dollars.
It was recently observed that the price difference between the First Growths and their second wines has been shrinking. Burgundy and Champagne also appear amongst the top risers. Both regions have performed well in recent months.
Sauternes features heavily amongst wines that have fallen and are down significantly in both Sterling and Dollars. The wines have seen limited secondary market activity and are rarely traded in volume. The wines are seemingly out of fashion but are generally high-scoring. At their current price levels they might look attractive to Dollar buyers.