Whisky is an interesting investment and passion for may high net worth. Delving into the different whiskies and learning the ropes is in itself very pleasurable. Invest in what you know and enjoy and you can't go too far wrong. Plus you won’t be short of friends to drink it with should the market fall. Though alcohol always sells well, particularly if you can afford to wait out any drop in prices.
A rare vintage bottle of Macallan sold for more than £1 million at auction in recent years. The potential if you pick the right brand is quite thrilling.
Many trading platforms promise an average annualised return of 10% after storage and fees over the last 12 years. The market can be volatile, but pick the right whiskies and you could see a much better return. Unlike wine, whisky always gets better with age. This ageing process also increases its scarcity. Not every distillery can afford to wait 8-50 years before selling their product, which is why opportunities arise as they need cash to develop, store and maturate that amber gold.
Independent whisky research shows that the whisky market is growing by around 2% each year, whilst the demand for older whisky is increasing even more. Not to mention that over 90% of UK whiskies are sold abroad, supporting many local companies and generating jobs. Plus a global market means it is more resilient to a national crisis and provides protection against weakness in Sterling or our own economy.
A bottle of Black Bowmore DB5 1964 cost less than £100 in the early '90s and now goes for more than £50,000. Macallan is the most collected whisky in the world so cast your eye over the Macallan 36-Year-Old Directors Special. Japanese whiskies such as Hakushu have also risen in price impressively due to enormous popularity and resulting shortages.
Rarity is a good investment. The Glenrothes Distillery released only 50 bottles of their Glenrothes 50-Year-Old barrelled in 1968 practically guaranteeing the future price rise as investors rushed to get in on the action.
In 2017 Midleton, makers of Dair Ghaelach, one of the finest whiskies in the world, launched their Cask Circle programme. I attended the launch of this upmarket members club offering single casks from £60,000 to £350,000. Both Irish and Scottish whiskies have done very well for investors over the last few years. The Redbreast Dream Cask Ruby Port Edition is very popular and worth a punt.
Experiment with the different whisky platforms such as Whisky Invest, Braeburn Whisky and Berry Bros. & Rudd and enjoy the process of discovering a world of scents and flavours going back generations.
Though the temptation to drink your investment rather than sell them might prove expensive.
This article is purely for informational purposes and does not constitute investment advice, always seek independent professional advice. Check with the FCA for help: https://www.fca.org.uk/investsmart