Diversify Your Portfolio with Whisky casks

How to Diversify Your Portfolio with Whisky Casks

Whisky casks are a lucrative and prestigious investment opportunity that provide healthy returns. The best part? Stock market performance bears no weight on whisky cask performance. That means whisky casks can effectively safeguard your wealth while still offering unparalleled returns.

Distilleries throughout Scotland are capitalising on the natural maturation process of whisky casks. As whisky continues to mature in its cask, the flavours develop and mellow into the perfectly dignified spirit that enthusiasts crave. As whisky is left to mature and encompass the characteristics of its cask, the spirit becomes more and more desirable and, thus, more expensive.

Scotch distillers know that a 25-year-old whisky can fetch a higher price than a 10-year-old whisky. Of course, you know that, too. However, you’ve never been able to benefit from the natural maturation process of whisky… until now.

Why Invest in Whisky Casks?

Hedge Against Market Fluctuations

The stock market can be volatile. Gains can quickly turn to losses and by the time you realise you should’ve done something about it, it’s too late. Your money is gone. While the stock market has historically recovered from downturns, it’s still stressful to ride that roller coaster. Plus, you never really know when your accounts are going to bounce back.

Even if they do recover, it feels like you’re working back up to the starting line, which can be frustrating. 

Instead of limiting yourself to traditional stock market investing, you can choose investments that help safeguard your wealth. Whisky cask investment performance isn’t at the whims of the market. Because whisky casks have real value and can be bottled and sold at any time, their value goes well beyond “paper investments”

Largely Untapped Market

Historically, whisky cask investments have been reserved for industry insiders. That makes the market for this investment still largely untapped. Right now, the competition among buyers for casks is as low as it will ever be. As the benefits of whisky cask investment become more widely known, investors will be flooding the market.

However, investors today have the chance to get their foot in the door before the competition rises. Since the barrier to entry is still relatively low, investors can benefit from buying prestigious casks today which will mature into the best, most desirable dram of tomorrow.

It’s Delicious

Perhaps this seems like a silly reason to consider an investment. After all, what does it matter whether it’s delicious as long as it gives you a healthy return and safeguards you against market swings?

Turns out, this is one of the best reasons to invest in whisky casks. The fact that whisky is a delicious and overall delightful drinking experience is what makes whisky casks so high in demand. As an investor, you’re capitalising on the demand for whisky and getting some great returns in the process. 

Consider this:

Does anybody invite their friends over to enjoy their gold coin collection? 

Not likely. 

But how many people are inviting their friends over for a dram of whisky?  

If your tangible asset isn’t desirable, you’re going to have a tough time getting your money out of it when it comes time to sell.

whisky cask investment

How to Get Started

Your whisky cask investment doesn’t have to be difficult. Use the steps below to get started on your whisky journey.

Choose a Reputable Advisor

You could try to go about your whisky cask investment on your own. However, there are a lot of benefits to leaning on a reputable advisor for help. You can rely on their industry expertise to help you choose the right casks, decide when to sell, and price the cask appropriately.

Plus, working with a reputable advisor helps ensure your casks are authentic. You won’t have to put in the work of tracking down documentation or transferring the legal ownership; your advisor can handle all of that for you. 

Find out how your advisor serves you after you’ve purchased your cask. Do they offer:

  • Regular portfolio evaluations
  • Exit strategy suggestions based on industry trends
  • Assistance in selling the investment
  • Cask value assessments

Set Your Budget and Goals

Whisky casks are available at a wide range of price points and can be anywhere from new-make to 30+ years old. Before you decide which cask to purchase, determine what your budget for whisky cask investment will be.

Next, decide what goals you have for whisky cask investment. Maybe you’d like to safeguard your wealth and focus on holding the investment for a long period of time. Perhaps you’re looking for a new-make cask that you can hold all the way to maturity and sell it at an exponentially higher rate. Or, maybe you want to hold a whisky cask from your favourite distillery or region. 

No matter your budget and goals, there are plenty of whisky casks available to meet your needs. After you’ve decided how much you’d like to invest and the goals for your investment, you’re ready to start the real journey.

whisky cask investment

Whisky Cask Investment Process

Whisky cask investment can be really simple, especially when you’re working with a team of experts that help you each step of the way. Here are the basic steps you’ll need to take.

1. Selection

This is the most exciting part of being an investor. Your first step is to choose the cask(s) that you want in your portfolio. You can browse through casks from some of Scotland’s most iconic distilleries. You can choose casks that reflect your personal whisky preferences such as flavour, distillery, or region.

2. Acquisition

During acquisition, you’ll be thankful you partnered with a reputable advisor. To complete the transaction and transfer the ownership into your name, you’ll have to complete some paperwork. Thankfully, your advisor can walk you through each step of the process and simplify it for you. 

3. Storage

Whisky casks must be stored and matured in a government bonded facility. Having an advisor makes this much easier. Your advisor will make sure your casks are stored properly during the life of your investment. It’s also important to have adequate insurance to protect your cask during the investment.

4. Exit

When the time is right, you can set an asking price and place your cask for sale. You can evaluate whisky industry trends to figure out how to price your cask to sell, while still reaping the largest returns. Or, you can lean on an advisor for this. A reputable advisor will have inside knowledge of recent cask performance. Not only can they help you set a price, but they can also help you figure out the best time to sell the cask in order to maximise your return.

5. Choose Your Next Whisky Cask

Whisky cask investment is so lucrative and rewarding that you’ll be ready to jump back in as soon as you’ve sold your cask. With a little experience under your belt, you’ll know what to expect so you can focus on the best parts: selecting the best casks and reaping the greatest returns.

If you’re ready to take your first step towards whisky cask investment, you can set up a free consultation with one of Braeburn Whisky’s trusted advisors. We can show you available casks within your budget and get you started on your whisky journey.

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