Liv-ex Fine Wine 50 suffers second decline

The Liv-ex Fine Wine 50 index is heading towards its second consecutive quarterly decline due to lack of demand for the Bordeaux 2012 vintage.

According to Bloomberg, the index, which tracks the price movement of the ten most recent physical vintages (currently 2001-2010) of the five Bordeaux first growths, has declined since mid-March, and is set for its fifth monthly decline in the past six months.

Although the index experienced a slight rise at the end of the summer, a 20% drop in the en primeur price of the 2012 vintage in Bordeaux compared to the 2011 vintage a year ago has failed to spark a buying trend.

However, wine fund managers remain confident about the long-term profitability of wines from the region.

“Despite the major correction in Bordeaux, we are still better off having traded in that market rather than most of the northern and southern Rhônes since inception,” William Beck, partner of Wine Asset Managers, told Bloomberg.