2005 is set to be a record-breaking year for Bordeaux, with prices for the latest vintage predicted to go up by 77% compared with 2004, according to the London International Vintners Exchange (Liv-ex) annual survey on Bordeaux, reports The Drinks Business.

Members of the exchange, which is made up of professional wine traders and merchants, were asked to score the vintage out of 100 points. The average score given was 95+, the highest in the survey's five-year history. Chateaux Margaux was voted the wine of the vintage.

James Miles, Liv-ex founding director, says, "The Liv-ex 100 index outperformed the FTSE 100, UK Gilts, Wall Street and the FT House Price Index last year. It has risen more than 11% so far this year." The fine wine market is based on a fundamental demand/supply imbalance. There is only a limited amount of fine wine due to lower yields from non-expandable acreage, but the number of high net worth individuals with significant investable wealth is increasing, particularly in the Far East and in Russia, where investing in fine wine has become a status symbol.

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