Nov 16 2008
With the launch of a futures market for fine wines last week, wine producers, investors, retailers and everyone with an exposure to expensive wines will now be able to hedge their risks by “betting” (buying futures contracts) on the Liv-ex 100 Fine Wine Index.
For all the detail about the futures market, the available contracts and conditions for participation, please go here.
For detail about the Liv-ex 100 Fine Wine Index, including how it is calculated, please go here. It is interesting to note that almost all of the 100 wines come from France (1 or 2 comes from Italy), and that about 96 are reds, 3 are champagnes and 1 is white.
Postscript: Since SA’s producers are not represented in the index, and SA collectors, investors and/or retailers probably have very little exposure to fine wines, the Liv-ex 100 Fine Wine Index also might be of very little significance to South Africans.