Provenance are delighted to announce that we are now an approved associate member of the London International Vintners Exchange (Liv-ex), the independent merchant-to-merchant fine wine trading platform.
Since their inception at the turn of the century, Liv-ex have consistently championed an enhanced level of transparency across the fine wine industry. assisting both consumers and those more focused on fine wine investment.
Their analysis of the 2008 Bordeaux en primeur season earlier this year provided an informed, independent commentary on the traditional annual between the major Bordeaux Chateaux, negociants and Europe’s leading fine wine merchants.
Even if the desire for increased transparency has not yet been mirrored entirely in the actions of the major Chateaux, it can only be a matter of time – which ultimately will only benefit consumers of fine wine.
As the first and the most successful of its kind, the London International Vintners Exchange is now arguably the world’s most important marketplace for the buying and selling of fine wine.
As one of 250 members in 22 countries across 4 continents, membership of Liv-ex gives Provenance (and therefore our clients) access to the best available prices globally for the fine wines we offer. It also enables us to provide the opportunity to sell wines back onto the secondary market almost immediately should any client wish to capitalise.
In order to join Liv-ex, Provenance had to be approved by a membership committee consisting of some of the most respected merchants in the industry, so in itself it’s a good indication that as a company we’re going about things in the right way.
“It has long been suspected that wine was a good investment, but because it’s been an opaque market, investors have been unable to quantify that, but we’ve been able to demonstrate that it performs strongly. Against that very big change in the demand dynamic for wine, you’ve also got a situation where supplies are shrinking.
Traditionally, it’s been northern Europe and Anglo Saxon markets who have been the main customers for Bordeaux/claret.
But that’s changed. The Far East has become particularly important, China and the newly rich in Asia. Top Bordeaux chateaux are becoming quality conscious, so if anything, they are making less wine. So prices are likely to go up.
I don’t think anyone is suggesting that wine should make up the bulk of your pension, but there is a case for having a small amount of your investment in wine.”*
*James Miles, Managing Director of Liv-ex, quoted in The Herald, July 8 2009: “Wine lovers pop their corks as rare vintages beat the recession”.
Tags: Bordeaux, En primeur, Fine wine investment, Liv-ex