Investing in whiskey: making money on ‘liquid gold’

It’s not just drinkers who love whiskey – investors are also interested in adding popular spirits to their portfolios.

Described as “liquid gold,” whiskey as an investment is “starting to take off,” Pavan Shamdasani said in a statement. Reputation. Investing in whiskey is increasingly “popular” and as an asset, “at least on paper” it has seen “significant returns”.

Victoria Moore says investment in whiskey is “booming” in walkie talkie. However, you cut it off, “the number of people globally interested in spirituality is enormous.”

Four bottles of Glenfiddich from the 1950s sold at auction for £1,037,500

A major fixture at auctions

What began as an “exclusive hobby of the connoisseur,” collecting rare whiskeys has become “an industry where the rarest bottles of wine are auctioned and traded on the secondary market.” Bloomberg reported.

Evidence of Whiskey’s growing popularity at auction came in early December when a batch of Glenfiddich 1950s sold for £1,037,500. Also at an event organized by The Distiller’s Charity in partnership with Sotheby’s, a bottle of The Balvenie 56 Year Old 1964 exceeded estimates between £50,000 and £80,000 and sold for £175,000.

Sotheby’s has posted record sales of $132m (£971,000) at its wine and spirits auctions in 2021 – of which spirits account for $21m (£15.4m). in total. Led by rare Scotch whiskeys, this underscores the “emergence as a staple of the global auction market”, Decanter reported.

Are from Bottle “everyday” At £250 for record auctions, the spirit “has never been hotter”, says Moore. However, there are some caveats…

In a blog on Master of Malt, Ian Buxton says that the rapidly expanding whiskey investment market “can’t keep going up forever”. There are signs that a bust is coming. “You have been warned!”

A cask of Arran Whiskey

‘Meet market expectations’

As one alternative investment, whiskey can be an “interesting option for those looking to diversify their portfolio,” Katharine Swindels said in a statement. Spear magazine. According to Knight Frank’s 2021 Wealth Report, the rare whiskey has seen a 478% growth in value over the past decade and this is higher than many other luxury items, including cars, wines, and spirits. , bags and art.

While rare bottles may be the most popular way of collecting, a recent trend has also emerged in this area – investing in whiskey casks and single casks. Despite the rarity of collectible bottles, this can be a relatively simple market to enter, either through specialty stores, auctions or private sales. But buying casks of whiskey can be “a little more difficult”, says Michael Haldane Moneyweb.

Buying a cask may provide another proposition for investors, but because whiskey appreciates as the barrel ages, “the asset has the ability to hold its value even in times of uncertainty.” Steve Bishop, founder of Elite Wine & Whiskey says CEO Magazine. “The value of casks will continue to rise, especially for aged, rare and unique whiskeys, which will continue to outperform standard single malts and continue to meet market expectations.”

A 10 year old Glenrothes whiskey cask

Case 88: chasing antique and rare whiskeys

Operating from five offices globally, 88 . barrel Co. Focusing on Scotch whiskey, Cask 88 offers rare whiskeys from renowned distilleries across Scotland.

It was founded with the mission of “opening the door to crate ownership that would otherwise be closed to individuals”, Cask 88’s global sales manager Patrick Costello told . From the time of purchase to becoming a barrel custodian, the company issues the title of the barrel, the purchase agreement and also manages the investor’s portfolio.

Cask 88’s “Pursuit of Antique and Rare Whiskey” has seen the company roll out Series “Unfiltered” in 2021 – the only four cask whiskeys bottled straight from the barrel. Rare films in the collection include 12-year-old Glen Garioch, 13-year-old Caol Ila, 14-year-old Ledaig and 32-year-old Northern Anh.

Cask 88 independently bottled

Explanation of whiskey cask ownership

The No filter the collection is “all about liquids” and this has been the main focus since Cask 88 started the business in 2015. With own a barrel of whiskey As Costello is becoming more and more popular among investors, Costello has provided some insight into the growing trend:

How did the idea for Cask 88 begin?

“We started this journey as many people have done when they embarked on their pursuit of cask ownership: with apprehension about the fact that we could control the future of the entire whiskey cask, and the last is its bottling and packaging design. One barrel of whiskey is too much whiskey for one person to drink, and so we sought to share the experience with others.

“From a small pursuit, a personal endeavor when we started trading in 2015, we are now enabling our clients to experience on a scale we could not have imagined. just 5 years ago. Each year, we have seen the number of transactions in our business more than double each year; against all odds, 2020 was our best performing year. As one of the first companies in this emerging market, we have a unique insight into the private whiskey casks market and as such, we have initiated our own analysis of cask sales data. which we have collected over the past 5 years. ”

12-year-old Glen Garioch in Cask 88's Unfiltered series
How does an investment for a crate compare to a bottle or a collection?

“Intact whiskey casks have a unique property that whiskey in the bottle does not benefit from: the spirit in the wood matures naturally over time. Whiskey has a complex aroma from the wood, which means it develops in flavor and value, as the years go by. Anyone familiar with malt whiskey will know that overall, an 18-year-old whiskey is a smoother and higher-priced wine, such as a 10-year-old whiskey.

“Once the barrel is bottled, the maturation process stops. Really only demand can drive up the price of that bottle of whiskey. Barrel whiskey is growing in prestige and longevity in the wood, alongside changing consumer demands. Those with the patience to wait will be rewarded with a whole cask of aged whiskey, which will be highly sought after and most of all quite valuable. While individual bottles of Scotch whiskey are more likely to be profitable in the short term, whiskey in the cask can be beneficial in the long run.” Investing in whiskey: making money on ‘liquid gold’

Fry Electronics Team

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