The vintage of Bordeaux wines is a particular one. Contrary to the great years of , and which are already considered as forming a historical trilogy vinous. But as for the quantity, it is decidedly low. The context of how to market the vintage is also particular. Covid has caused the price of fine wines to soar for the past two years, and the sanitary restrictions have now given way to geopolitical uncertainty and inflation hitherto unseen for several decades.
In the universe of traditional financial assets stocks and bonds , it is usual to distinguish between primary and secondary markets. The first refers to the moment when an issuer company or government sells its securities to investors. The secondary market refers to the market on which investors exchange securities.
For the issuer, the question is always to determine the right price at which to sell its securities on the primary market. Too low a price means that the issuer is giving up transferring value to investors to its detriment.
So how to avoid making a mistake? The secondary market provides a wealth of information: where one can see what prices similar securities are trading at. The secondary market thus plays the role of a benchmark and allows to estimate the appropriate release price.
Wine has rather similar characteristics in terms of market organization. The en primeur campaign corresponds to the primary market. In recent years, this ecosystem has been completed by the emergence of a genuine market platform set up by the London-based company, Liv-ex.
