Market Prices more up-to-date than ever
This summer, Liv-ex reviewed how Market Prices are calculated. The algorithm changes have resulted in a significant increase in the number of wines with a Market Price, and prices that are more up-to-date. This is particularly true of older and rarer wines.
Key changes Essentially, the Market Price is what you are likely to pay for wine with no condition issues in the market. Tax and duty are excluded. It’s drawn from the lowest price advertised by leading stockholders, mostly in the EU. Historically, this was based on wines in 12×75 or 6×75 packs.
From this summer, wines packed as 3×75 are also used in the calculation. Additionally, machine learning is used to detect when a wine has become so rare that single bottles represent a significant proportion of the market. At this point, single bottles will begin to influence the Market Price.
For US wines, US merchant prices are now included. This has contributed to the rise in data on US wines.
Market Prices are still based on lists from major stockholders. This makes benchmark prices from Liv-ex more accurate than other sources.
The results Since the changes have been brought in:
19% more wines have a Market Price.
33% more Market Prices are from lists processed in the last 35 days
133% more US wines have Market Price
The biggest improvements have been for old and rare wines.
Examples The charts below show the Market Price history for wines before and after the changes were introduced.
Chapoutier, Ermitage Pavillon 1990
Guy Roulot, Meursault Charmes, 2010
The impact has been smaller on more liquid wines, such as Pontet Canet 2010.
Liv-ex Prices As a member of Liv-ex we have access to these prices. Please talk to one of our team at Veblen Wines by emailing firstname.lastname@example.org or calling 01622 672314 for more information or to discuss how we can help you trade your interest in fine wine.