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market report

Liv-ex is an electronic exchange for fine wine used by professional merchants and collectors. Each month Liv-ex publishes a detailed Market Report analysing fine wine prices and trends in the marketplace. The Market Report is part of a package of data and services offered to subscribers of Liv-ex, with subscriptions starting at £39.95 per year.

Below is just a brief extract from the latest Market Report. An extract will be offered on wine-pages as soon as it is published each month, but for the full report and Liv-Ex's extensive services, sign-up with them at www.liv-ex.com

Liv-Ex Market Report
by Liv-ex.com, June 2005

Trading
Activity in June was dominated by the Bordeaux 2004 campaign. While not a patch on the frenzy that surrounded the launch of the 2003 vintage, turnover on the exchange still recorded its most active month of the year so far, with volumes up 46% on May. Stock held by the leading UK merchants was up by 2.2% on the month. The Liv-ex 100 rose a further 0.2%.


(extensive analysis by region in the full report)

Major Movers
The table below shows the major movers, month on month, in June. The leader board was totally dominated by 1982 clarets as aggressive buying of increasingly limited stocks drove prices higher. The fallers included some well regarded, but out of favour, top Rhones.


(the featured wines are analysed in detail in full report)

Critical Corner
Whilst Bordeaux has been the focus of our reports over the last few months, we thought it would be interesting to look at another area of the wine world - Spain. Last October one of Parker's predictions for the fine wine market on a ten-year view was the emergence of Spain as major player. In his latest review of new releases from Spain (Wine Advocate Issue # 159) he says, “every year, the number of high quality Spanish wines increases, and my tastings this year were the most exciting in 26 years”.

There are still plenty of mediocre wines from Spain that cloud the issue. Indeed with Spanish wines, perhaps more so than any other country, you need to work your way through the rump to find the quality wines. The wine names alone are a bit of a minefield!

We have selected some wines below that appear to be on the rise (many of which are new to us) and have scored well in Parker's recent tastings carried out between January and June of this year. These wines are from a mixture of vintages but the wines from 2001, if you can find them, are in Parker's words, “mythical”.


(extensive list of wines in the full report)

Final Thought
The last few pieces we have written in “Final Thought” have focused on how expensive young wines have become in recent years, so if recent vintages are expensive, where does the value lie? Our analysis of both top down (i.e. by vintage) and bottom up (i.e. by wine) suggests that of the vintages that are perceived to be of investment grade, 1986, 1995 and 1996 are where most of the value is to be found.

This month we have done a screen of almost 500 Bordeaux wines on the market. We have taken 25 of the top names from 19 vintages between 1982 and 2004 (excluding 1984, 1987, 1991 and 1992). We have then compared the latest Liv-ex price and the latest Parker score (from www.erobertparker.com) to ascertain which wines stand out on our “fair value” analysis. The latter not only takes account of price and score but also the opportunity cost of holding the wines (i.e. the cost of money at 5%). This analysis has unearthed some interesting anomalies.

In the table below we highlight 15 wines, which stand out as being particularly good value. These wines not only look cheap using our fair value analysis.


(more analysis and extensive list of wines in the full report)

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