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Liv-ex toasts a broader market

If the secondary market is becoming a little less reliant on Bordeaux and its First Growths that’s no bad thing claims Liv-ex.

Last week, with public holidays in China, trading on Liv-ex was light and Bordeaux’s share slipped to 64% with only Lafite and Mouton Rothschild seeing good levels of trade among the First Growths. The star performer in both volume and value was Sassicaia 2011.

Opus One produced in 'First Growth' quantities
Opus One produced in ‘First Growth’ quantities

According to Liv-ex director Justin Gibbs; when the market peaked in mid-2011 the First Growths accounted for over 60% of trade by value, while Bordeaux’s share was 95%. “Today Bordeaux ranges from 75 – 80%, while the First Growths are down to 20 – 30%,” said Gibbs who blamed much of the drop on the dramatic correction in value. “Lafite 2008 for example was once trading at £14,000 a case. It’s now £5,000.”

Gibbs added that: “You don’t get a full turn in the market without the First Growths participating. The broader market can go up and down without them, but it won’t power ahead.” He believes this is partly down to the limited production. “The best wines made in Burgundy, Napa and Italy don’t come in proper quantities,” he said. “The closest you get [to First Growth quantities] is probably Sassicaia on 15,000 cases and Opus One on 25,000.”

For all that, Gibbs believes trading conditions are healthier than they were. “What’s good about the current state of play is that the market’s a lot broader and less singularly focussed on the very top wines from one region. That was always going to lead to trouble.”


Liv-ex 8 OCT Source: Liv-ex

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