Liv-ex is often asked to explain the methodology behind its prices, and why its data is the industry standard. A few months ago we expounded upon the Liv-ex Mid-Price, which is used for creating mark-to-market valuations for the world’s major fine wine funds. In this blog we turn our attention to the Market Price.
The Market Price is an indication of the price you are likely to pay for SIB-compliant stock, off the exchange. The price given is for a 9-litre case, and is based on the cheapest 6 and 12-pack wholesale prices advertised by leading merchants in the EU. (Where appropriate, alternative unit sizes are used for the calculation and then converted into a 9-litre format – such as for single bottles of rare Burgundies or half bottles of Sauternes.)
The Market Price is shown above in blue. Liv-ex trades are in red.
Liv-ex collects price data from its membership base of 430 merchants worldwide; these merchants account for the vast majority of global fine wine turnover. The data is cleaned and sorted by merchant region, merchant type, and how regularly lists are updated. We then cross check lists to ensure accuracy. From this we create a top tier of merchants whose lists are used to find the Market Price. We regularly review this Tier 1 group to ensure that we have as full a data set as possible. Market Prices are updated every time a new price is received, ensuring that our data is not only the most comprehensive but also the most current. If no new prices are found, the calculation stays the same.
Last week Liv-ex launched Liv-ex Badges. This is the official way for subscribers to Liv-ex services to promote their use of Liv-ex data, and the most accurate fine wine prices available. The "Prices from Liv-ex" badge tells you that a company has subscribed under license to publish the Market Price, or has subscribed to the Online Marketplace feed.
For more information on our prices, badges or data feed products, please get in touch.