Falling ratio points to falling prices

Today the ratio of bids:offers on Liv-ex is at its lowest
since August 2012, at 0.30 (a ratio of 0.50 and above typically indicates a
healthy market). While active markets (the number of wines with either a bid or
offer against them on the exchange) are at record
, it is entirely due to an increase in offers. Bids are dropping

Below we have charted the Liv-ex 50 against the bid:offer
ratio. Correlation between the two would suggest that a change of direction in
the bid:offer ratio results in a change of direction for the Liv-ex 50 (with a
lag of 2-8 weeks). While imprecise, it would seem that fine wine prices may
struggle to rise with the current ratio.  

Liv-ex 50 vs bid offer ratio

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