When planning your investment purchase, bottles are a tangible investment and relatively easy to sell or auction, either to other investors or consumers. In contrast, depending on market conditions, casks are not likely to trade quite as quickly. Investors who take the long view are unlikely to see this as a disadvantage – especially when demand for scarce varieties is high.
Significantly, annual storage costs usually apply to casks in distillery cellars. Nevertheless, investing in a barrel could widen one’s future options: sell on, or bottle the produce.
As is usual with investments, timing is of the essence. Experts usually recommend that whisky investors keep a watchful eye on the market, research distillery performance and monitor the latest product releases to identify new opportunities.
Finally, opt for the highest quality and scarcity possible. Apart from the distillery and brand, critical factors include:
- Age and vintage. Older whiskies tend to be more valuable.
- Warehouse and manufacturing processes. Where and how whisky is produced are vital clues regarding its uniqueness and quality.
- Cask type. Importantly, the type of oak and preparation (i.e. toasting or charring) contribute to the liquor’s flavour, characteristics and quality. Size and seasoning play an important part too, i.e. ex-Bourbon or ex-sherry barrels.
- Synergies with other whisky editions, which may well boost future interest from other collectors.
