Increasing Sales and Value
Globally, the appreciation in the sale values of fine single malt and grain whisky has added to investors’ interest in the commodity. Indeed, when stock markets fluctuate, investors usually seek safe havens to protect their assets. If you are seeking to diversify your investment portfolio, we invite you to read on.
Over recent years, a younger audience and broader cross-section of consumers have come to appreciate quality Scotch and Irish whiskies, not least for their distinct heritage and romantic overtones. Enthusiasts tend to source their collections from private sources.
While the spirit has become a conversation point, it has also become attractive to investors. However, deciding whether mature Scotch whisky or Irish whisky is the right financial move for you involves more than just a discerning palate. Our experts recommend researching performance potential and maintaining a diverse portfolio of investments, too.
Choosing Collectable Bottled Whisky
Experience and know-how matter are crucial when one is looking to buy potentially collectable whisky. To achieve growth in value over the long term, it is good to seek less popular bottles and the highest quality possible. In some cases, these rare gems could well still be undervalued, especially if they have not yet reached the mass market.
Auction spirits specialists view the increase in the selling prices of certain whiskies as remarkable, quoting examples of a whisky worth around £100 in the mid-1990s that sold for tens of thousands of pounds at Sotheby’s. A spectacular result, the selling price reflected the liquor’s undeniable quality and, due to a now limited supply, its newfound rarity.
However, as an investment, bottles do have their possible downsides, mainly the dreaded ‘double D’: drink it or drop it. Also, savvy investors would do well to deal only with a reputable broker, to reduce the risk of buying counterfeit spirit. Buyers should research their planned purchase and avoid anything suspicious.
Appreciating Values of Cask Whisky
Investing in casks can yield spectacular returns. Increasingly, today’s distilleries offer cask investment plans. Whisky fund examples range from small operators such as Ardnamurchan, Ardnahoe and Lagg to the large Diageo group with its Casks of Distinction programme. Read more: Beginners Guide to Investing in Whisky.
As one would expect, whisky casks vary considerably in cost, depending on their quality, size, the type of wood and the contents’ age. Cask purchases include the oak barrel itself and new make spirit inside, although insurance premiums and storage are extra. Initial outlay ranges from around £1,000 at entry-level up to millions of pounds when the liquor is mature.
Finally, to help deal with tax regulations, legal titles, and other occasionally complicated paperwork, investors usually enlist an experienced broker or merchant’s help. Such experts may be willing to share their opinions and offer detailed advice or an assessment of possible appreciation, based on the individual cask, distillery and year.
