Is fine wine turning a corner?

The Liv-ex Fine Wine 100 index is finally showing a year-on-year gain as it rose 0.9% in June to close 3.4% up on the same level in June 2014.

liv-ex fine wine 100 index five yearsThe fine wine market has been in decline for four consecutive years since the 2011 crash but since late summer last year there have been signs it is recovering.

In July 2014 it closed on 234.01, the lowest level since September 2009. Nonetheless, it regained 1.9% by the end of the year and has remained stable in 2015 posting a total gain of 2.3% on the year to date.

Liv-ex’s global members have predicted that the Fine Wine 100 will rise an average of 8.7% this year, while the number of active markets on the exchange has gone from 3,000 two years ago to a record 5,000 which indicates: “broadening demand and increased engagement.”

The ratio of bids to offers is currently 0.73, the highest since February 2013.

Liv-ex director Justin Gibbs commented: “Despite a lacklustre En Primeur campaign the secondary market has held up very well. After four years of declines few are prepared to call the turn but our internal indicators suggest that a long overdue recovery may be underway.”

June’s best performers were dominated by the 2005s, with freshly minted 100-pointers Haut-Brion, La Mission and Cheval Blanc all on the up by 12%, 26% and 14% respectively, with Haut-Brion now hitting £5,245 a case.

Also up were 2009 Angelus and 2009 La Mission by 6.6% and 5% respectively.

Going down was a motley collection of brands including (in descending order): 2009 Grange, 2010 La Tache, 2001 Yquem, 2009 Sassicaia and 2010 Beaucastel Châteauneuf du Pape.

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