Wine Market and Wealth
Below is just a brief extract from Liv-ex Market Report. For the full report and to access Liv-Ex's services, sign-up with them at www.liv-ex.comLiv-ex is an electronic exchange for fine wine used by professional merchants and collectors. Market Report is part of a package of services offered to subscribers of Liv-ex, with subscriptions starting at £49.95 per year.
Fine wine is most closely correlated to the prosperity of the world.s wealthiest consumers, which may partly explain why price changes in the wine market tend to lag behind equity markets. Overleaf we have compared the number of billionaires in the world (as calculated by Forbes magazine) to changes in the Liv-ex 100 Index. As the chart shows, membership of the 'billionaire club' has expanded from 243 to 946 since 2002 making the last 6 years an unprecedented period of wealth creation. Over the same period, the Liv-ex 100 Index is up by more than 150%, most of this increase has been since the middle of 2005, which corresponds with a marked increase in wealth. Some 572 new billionaires were created between Forbes. 2005 and 2007 lists - more than twice the total number in existence in 2001!
