An Exclusive Whisky Investment Opportunity.
Over the years, Scotch Single Malt Whisky has become an increasingly popular form of investment. And as its popularity has grown, so have the prices that investors are willing to pay.
The economics of Single Malt Whisky as an investment is fairly straight-forward. With a finite amount of old and rare casks on the market, combined with a growing base of investors, the rising demand and dwindling supply steadily pushes up the prices of investment grade whisky.
Interest in investing in Scotch Single Malt Whisky has been growing since the 1990s, especially in Asia and large parts of Europe. More recently, investors in India, Russia and China have also become active in the market.As a result, the call for Single Malt Whiskies is exploding.
Recent developments indicate that a number of distilleries have failed to capitalize on this trend, causing stock shortages. Due to the long ageing process, it is getting increasingly difficult to meet the ever-growing demand.On top of this, we expect whisky from closed distilleries to disappear from the market in the next 5 to 10 years.
Investors who recognize this trend are moving into the market, creating a burgeoning demand. As a result, certain rare brands of Single Malt Whisky have experienced price increases of 100 to 300 percent in a single year.
Obviously, not every cask of investment grade whisky will enjoy that type of price increase, but long-term investors could achieve substantial gains over a period of years.
In broad terms, there are 3 different types of investment-grade whisky:Rare Bottles, Casks and Exclusive Bottles.Each can play an important role in an investment portfolio based on the objectives of an investor.
Investment Grade Casks
Casks possess a unique trait, they continue to mature.Once whisky is bottled the maturation process stops, but when it remains in a cask it continues to naturally increase in flavor and value.Another benefit of casks is the ease of buying a bulk quantity of whisky at a low cost per ounce. When casks are purchased as an investment they are titled to the investor then stored in a government bonded warehouse in Scotland.
Read More About Investment Grade Casks
Rare Bottles
Rare Bottles represent bottled whisky that is very old or has a limited supply due to other underlying factors.For example, whisky produced by distilleries that are no longer in operation or years in which supply was reduced by economic and geo-political forces. Rare bottles are very limited in supply yielding a significant premium above the market price of whisky.
Exclusive Bottles
Exclusive Bottles offer the ability to buy whisky which can be transported worldwide at a cost per ounce comparable to casks. These bottles can be sold immediately or stored in anticipation of future appreciation. An added benefit for prestigious hotels, restaurants and corporations is the ability to completely customize the presentation.The label, bottle and packaging can be designed in a manner suited to it’s purpose, a truly one-of-a-kind whisky.
