Top of the trades

With a number of wines from the 2005 Bordeaux vintage about to enter the Liv-ex 100, we face the difficult decision of which wines to include and remove (see the forthcoming July Market Report for full details of the changes). One of the ways we do this is by looking at the level of trade each wine attracts. The more a wine is traded – the more likely it is to be included in the index (although it has to fulfil other criteria too).

As you can see below, the 20 most traded wines by value are all red Bordeaux and almost entirely first growths – with only Mission Haut Brion, Cheval Blanc and Carruades de Lafite breaking the monopoly.

This is precisely why fine wine investors like to base a portfolio around these wines. More trade, means more liquidity; making it easier to obtain the wine, keep track of its value and then sell it. This is also why the Liv-ex 100 – which is designed to reflect the fine wine market – is dominated by top red Bordeaux.

The top 20 wines in terms of total value traded on the Liv-ex fine wine exchange (year to end of May 2008) are as follows:

1. Lafite Rothschild

1996

2. Lafite Rothschild

2006

3. Latour

1996

4. Margaux

1996

5. Cheval Blanc

1998

6. Mouton Rothschild

1996

7. Lafite Rothschild

2005

8. Margaux

2004

9. Mouton Rothschild

2006

10. Lafite Rothschild

2004

11. Lafite Rothschild

2000

12. Margaux

2006

13. Haut Brion

1990

14. Mouton Rothschild

1998

15. Mission Haut Brion

2000

16. Margaux

2005

17. Mouton Rothschild

2001

18. Margaux

2003

19. Carruades de Lafite

2004

20. Haut Brion

1998

 

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