What is Liv-Ex?
The London International Vintners Exchange (Liv-Ex) is a trading platform that was founded in 2000 and connects merchants, negociants and traders worldwide.
The number of members has grown to over 450 merchants from 36 countries globally. It has a number of useful indices and has revolutionised the wine market.
The Liv-Ex Fine Wine 50 Index tracks the daily price movement of the most heavily traded commodities in the fine wine market – the Bordeaux First Growths. It includes only the ten most recent vintages (excluding En Primeur, currently 2006-2015), with no other qualifying criteria applied.
Widely considered to be the fine wine industry’s leading benchmark, the Liv-ex Fine Wine 100 is designed to reflect price movements at the top-end of the fine wine market. Much like the FTSE 100 it is weighted by market capitalisation – which means young, expensive wines produced in larger quantities have the greatest impact on the index.
Tracks the most “investable” wines in the market – around 200 wines from 24 top Bordeaux Chateaux. In essence, it aims to mirror the performance of a typical wine investment portfolio. The index data starts in 1988, further back than any other Liv-ex index.
Accredited Member of Liv-Ex since 2013
Our Liv-Ex membership gives us access to meticulous monthly reports and studies which keeps our clients at an advantage with its unparalleled insights.
With over 450 members across the globe, this fine wine trading platform trades over 80% of the world’s fine wines.
Fine wine vs FTSE-100
The last 5 years have been relatively unsettled in the U.K due to political uncertainty, this has lead to increased volatility in the FTSE 100.
What this graph demonstrates is, not only has wine shown more stability in such times, but it has also considerably outperformed the U.K. index in terms of growth.
Fine wine vs Gold
Fine Wine has been able to uphold its reputation as a hedge against risk as it is a tangible asset with lower levels of volatility compared to Gold.
Historically the returns some fine wines have achieved (see section ‘Wine Performance’) have outperformed those achieved by other commodities. The graph shown compares Liv-Ex benchmarks performance against Gold over a period of 5 years.