As experienced investors know – and as with any commodity or stock of this type – the most impressive results come over time. Each cask matures and appreciates in value. In particular, limited supplies and a healthy export market have ensured that demand and asking prices for premium malt whisky and rare varieties remain buoyant.
Across Scotland, this centuries-old industry has benefited from new manufacturing and management techniques, as well as efficient ways to involve investors. Forward-thinking distilleries now look to finance part of their upfront costs through private investment.
Significantly for investors, holding casks of whisky in distilleries’ HMRC-approved bonded warehouses does not incur any liability for capital gains tax. Varying levels of investment are possible, depending on the individual’s appetite and circumstances.
Specialists in whisky cask investments have taken the time to put together investment performance indices, focusing on quality liquors. By and large, annual returns of 12 to 13 per cent are not uncommon. Notably, younger investors who can maintain their holding for a decade or more stand to benefit from occasionally spectacular increases. Among the examples is a cask of 45-year-old scotch that sold for £600,000, many times its initial cost.