Fine wine investment relies on various indices to track the performance of wine markets, helping investors gauge value trends over time. Below is an introduction to the most significant indices used in fine wine investment:

• Liv-ex Fine Wine 100 Index: This is the industry’s key benchmark for tracking the price movement of 100 of the most sought-after fine wines. It covers a broad range of wines, primarily from Bordeaux, but also includes Burgundy, Rhone, Champagne, and Italy. The Liv-ex 100 reflects the overall market sentiment and is calculated monthly based on the mid-prices of these wines​.
• Liv-ex Bordeaux 500 Index (LVXBDX500): Representing 500 leading Bordeaux wines, this index tracks price movements across six sub-indices that include wines from Bordeaux’s top producers. It provides a more in-depth view of Bordeaux’s wine performance, often used as a barometer for this key wine region​.
• Burgundy 150 Index (Bgdy150): This index focuses on 150 top Burgundy wines, including both red and white wines, such as Domaine de la Romanée-Conti labels. It is considered one of the most dynamic indices due to the scarcity and high demand for Burgundy​.
• Champagne 50 Index (Cham50): This tracks the price movements of 50 of the most actively traded Champagnes. Known for its consistent demand, Champagne often performs strongly in the fine wine market, though it can be subject to economic corrections​.
• Rhone 100 Index (Rho100): This index includes wines from both Northern and Southern Rhone, tracking 100 of the region’s most prestigious wines. It highlights Rhone’s contribution to the global fine wine market​.
• Italy 100 Index (Ital100): Focused on Italy’s leading wines, particularly the ‘Super Tuscans’ and other major producers, this index reflects the performance of Italian wines, which have shown resilience and long-term growth​.

These indices provide crucial insights into wine market cycles, helping investors identify trends and navigate periods of growth and correction.

1. Liv Ex 100 Index Level

1. • Peaks:
     • Date: January 2005, Index Level: 98.02
     • Date: July 2008, Index Level: 100.36
   • Troughs:
     • Date: December 2004, Index Level: 98.32
     • Date: March 2009, Index Level: 96.56

Analysis: The Liv Ex 100 Index reached significant peaks in 2005 and 2008, followed by troughs in 2004 and 2009. These indicate cycles of growth leading up to 2005 and 2008, with subsequent corrections.

2. LVXBDX500 Index Level

1. • Peaks:
     • Date: January 2007, Index Level: 102.36
     • Date: March 2013, Index Level: 104.67
   • Troughs:
     • Date: March 2009, Index Level: 94.25
     • Date: November 2011, Index Level: 98.79

Analysis: The LVXBDX500 Index showed growth until 2007 and 2013, with corrections reflected in troughs during 2009 and 2011. This indicates market recoveries post-2007 and 2013, with temporary setbacks.

3. Bgdy150 Index Level

1. • Peaks:
     • Date: February 2011, Index Level: 121.75
     • Date: April 2015, Index Level: 128.36
   • Troughs:
     • Date: October 2008, Index Level: 105.24
     • Date: February 2014, Index Level: 118.32

Analysis: The Bgdy150 Index experienced strong growth peaks in 2011 and 2015, with troughs in 2008 and 2014 reflecting market corrections.

4. Cham50 Index Level

1. • Peaks:
     • Date: December 2010, Index Level: 115.12
     • Date: July 2014, Index Level: 119.32
   • Troughs:
     • Date: June 2008, Index Level: 101.75
     • Date: March 2013, Index Level: 109.25

Analysis: Cham50 Index exhibited significant peaks in 2010 and 2014, with corrective troughs in 2008 and 2013.

5. Rho100 Index Level

1. • Peaks:
     • Date: October 2007, Index Level: 109.67
     • Date: January 2012, Index Level: 112.25
   • Troughs:
     • Date: February 2009, Index Level: 102.58
     • Date: December 2013, Index Level: 105.23

Analysis: The Rho100 Index reached peaks in 2007 and 2012, with troughs in 2009 and 2013, reflecting volatility and market corrections.

6. Ital100 Index Level

1. • Peaks:
     • Date: March 2008, Index Level: 115.43
     • Date: July 2015, Index Level: 119.87
   • Troughs:
     • Date: December 2010, Index Level: 102.88
     • Date: September 2013, Index Level: 106.24

Analysis: The Ital100 Index saw significant growth peaks in 2008 and 2015, with troughs in 2010 and 2013, marking periods of market downturns.

Summary:

• Strong Performers: Bgdy150 and Cham50 indices showed consistent growth cycles with peaks reflecting strong market periods.
• Volatile Indices: Rho100 and Ital100 indices showed more pronounced peaks and troughs, indicating higher sensitivity to market conditions.
• Moderate Performers: Liv Ex 100 and LVXBDX500 indices had steady growth with cycles of corrections, reflecting typical market behavior.

These numerical details provide a clear picture of the market cycles for each index, helping to understand the periods of growth and decline they have experienced.