Liv-ex 1000 hits record high

The Liv-ex 1000 index hit a new all-time high in August, exceeding even the China-driven peak in 2011, while the Fine Wine 100 entered its ninth month of positive gains.

The 1000 index – which tracks fine wines from many regions – closed in August at 281.62, an increase of 3% on July’s close.

The index’s previous peak was in July 2011 when it hit 279.69 before it then tumbled with the market to a nadir of 242.6 in August 2014.

The market for fine wine has been improving since December last year and has been given a boost ever since Britain’s vote to leave the EU this June, which weakened sterling encouraging euro and dollar-based merchants to move in.

Bordeaux and Burgundy in particular have been leading the charge, with the Bordeaux 500 sub-index (which tracks the 50 top châteaux) gaining over 15% in a year, while the ‘Bordeaux Legends 50 is up 18%.

Liv-ex director, Justin Gibbs, remarked: “Bordeaux was the region most affected by the downturn following the peak of the China-led boom for fine wine in mid-2011. While other regions continued to perform well – particularly Burgundy and the New World – Bordeaux’s dominant share of the fine wine market weighed heavily on the index. Bordeaux’s dramatic recovery has allowed the broader index to reach new highs.”

The Fine Wine 100 index also continued its ascent in August. Up 2.9% against July the benchmark index is now at its highest level since March 2013 after nine consecutive positive months.

Best-performing wines in August included Vieux Château Certan 2009 (up 14%), Armand Rousseau’s Chambertin 2010 (up 10%), Léoville Las Cases 2000, Comtes de Champagne 2004 and Margaux 2009.

Going down however were: Margaux 2005, Petrus 2010, Pichon Lalande 2000, La Mission Haut-Brion 2009 and Beaucastel’s 2012 Châteauneuf du Pape which declined 6.1%.