Liv-ex uncorks weekly wine index

Tracking the value of a wine cellar full of “investments” will get a little easier starting Monday when the London International Vintners Exchange launches the Liv-ex Claret Chip Index, the first fine-wine weekly price index.
JAN 23, 2009
Tracking the value of a wine cellar full of “investments” will get a little easier starting Monday when the London International Vintners Exchange launches the Liv-ex Claret Chip Index, the first fine-wine weekly price index. The price-weighted index, which is made up of 31 Bordeaux wines, is designed as a more concentrated version of the Liv-ex 100 Fine Wine Index, which was launched by the exchange in 2004. “The Liv-ex Claret Chip is a simpler, more focused index that is based on just the wines that investors are most likely to buy,” Jack Hibberd, research manager at the exchange, wrote in an e-mail. He added that the index’s 31 components make up 57% of the Liv-ex 100 index by weighting. “Therefore, the Claret Chip gives a very good guide to where the 100 will finish at the end of the month,” Mr. Hibberd said. The Liv-ex 100 tracks the world’s most sought-after wines on a monthly basis, while the Claret Chip will offer weekly updates. In 2008, the Liv-ex 100 index lost 14.6%, while the Claret Chip Index, had it existed, would have been down 14.3%. This compares with a 38.5% drop by the Standard & Poor’s 500 stock index. In 2007, Claret Chip would have gained 48.1%, the 100 index gained 40.4%, and the S&P fell by 11.1%. While auction houses still represent the majority of fine-wine trading in the United States, exchanges such the London International Vintners Exchange and several websites are now responsible for 90% of global wine trading. Members of the Liv-ex exchange can enter their wine portfolios to learn the current and historical values, much like a stock or mutual fund.

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