Breadth and depth

Active Markets and Spreads

2012 may not have been an easy year for the fine wine
market, but the two charts here certainly provide reason to be cheerful. Liv-ex
now has 430 merchant members in 35 countries, and their level of engagement
continues to grow. The number of active markets and the number of spreads on the
exchange hit a new high last month.  

There are currently more than 3,500 bids and offers on Liv-ex,
reflecting a broadening market. Exchange turnover reached a yearly high in
March, while the total exposure (shown below) has been rising since August 2012
and now stands at over £21.5million. 

Total Exposure

These are positive signs, but while the closing level of the
Liv-ex 100 Index in March showed another
monthly rise
, it remains 23% below its peak of June 2011. All eyes now turn
to Bordeaux 2012. If they price it right – and this is by no means guaranteed –
the market will continue to broaden and deepen to the benefit of all.