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Ian McGlone

Can anyone explain why Penfolds Grange 1998 has suddenly shot up in price? It has remained static for some time prior to the recent hike.

RB

Dear Sir,

You mentioned two variables in your index formula which influence index weighting:

1. Components are production weighted
It would be of interest if you could tell us a decent source about annual case production. A statement like "this year first growth production is 12-13,000 cases" is not an accurate one. Perhaps it might help if you publish your estimate of Liv-ex 100 components production.

2. Components are scarcity weighted
Another obvious problem. We will probably need a hard wired numbers (estimates) about Liv-ex index wines regularly updated. Do you use a linear depreciation model or more sophisticated one?

Thank you for the answer.

Liv-ex

Alan,

A wine has never actually been removed because of a points downgrade. We have, however, removed wines for liquidity reasons. In the last year 11 wines have been replaced on the the index due to lack of trade.

The following wines were removed:

Krug 1985
Guigal E, Cote Rotie Mouline 1999
Gaja A, Sperss 1997
Guigal E, Cote Rotie Landonne 1999
Guigal E, Cote Rotie Turque 1999
DRC, Tache 1995
Gaja A, Sori San Lorenzo 2000
Guigal E, Cote Rotie Turque 1995
Gaja A, Sperss 2000
Beaucastel, CNDP Hommage J Perrin 2000
Rayas, CNDP 1995

And replaced with:
Latour 2004
Lafite Rothschild 2004
Haut Brion 2003
Mouton Rothschild 2003
Ornellaia 2004
Chave JL, Hermitage Rouge 2003
Clos Papes, CNDP 2003
Krug 1996
Guigal E, Cote Rotie Landonne 2003
Guigal E, Cote Rotie Mouline 2003
Guigal E, Cote Rotie Turque 2003

AlanM

Good insight, thank you.

can you perhaps put some numbers around comments such as "It is actually quite rare that Liv-ex removes a wine because its points score has been downgraded, because critics do not often downgrade a wine once it has been bottled."

how often are wines added or subtracted (apart from the 25 year rule), how many have been added or subtracted in the last 12 months perhaps?

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