At the end of 2019 Knight Frank published their annual “Luxury Index”, reporting a 40% increase in value throughout the year, and a 580% increase during the last decade for bottled rare whisky, marking a notable increase in popularity.
At the end of 2019 Knight Frank published their annual “Luxury Index”. It reported that the Whisky Market rose 40% throughout the year, and over 580% over the last decade, making it the top performing asset class.
A Single Malt Whisky Fund launched on the Nordic Stock Exchange late 2019. It is on course to raise €25 Million. The minimum spend is €100,000 and it aims to return 10% per annum.
In November 2019 Bonhams Auction House in Hong Kong set a new record for a cask of Whisky. A 30 year old cask of Macallan sold for over £440,000. It is believed this cask was originally purchased for a few thousand pounds. The whisky boom is by no means limited to the Asian markets. In London, Sotheby’s held their first whisky-only auction which netted £7.6 Million in revenue.
Casks of whisky produced in 2020 are forecast to be highly valuable in the coming decades due to the industry’s drop in production. Trade body the Scotch Whisky Association said in a statement on 14 May during the first lockdown that “87% of production sites are either operating at reduced capacity or have closed entirely. The decline in production means the value of whisky produced in 2020 will ‘become increasingly rarer in the years to come’.
The whisky boom is by no means limited to the Asian markets. In London, Sotheby’s held their first whisky-only auction which netted £7.6 Million in revenue.
Whisky Cask Ownership is an attractive opportunity due to the slower, long-term nature of the commodity, much like gold. This stability, combined with a proven track record is preferred over new rapidly evolving markets, especially in uncertain times. Scotch whisky is a steady long-term business and the future looks set to emulate the past.
Unlike Gold, Scotch Whisky is a core part of Britain’s economic performance, last year directly contributing £4.8 Billion to the economy.
With Whisky there are fewer variables to consider. The value of Gold fluctuates daily due to numerous factors which are sometimes unforeseen, whereas whisky casks carry much more certainty. One thing you can be sure of is, given the correct storage conditions are met, all whisky casks will mature without exception.
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Whisky cask ownership is not regulated by the FCA and is therefore not eligible for the FCA Compensation Scheme. The value of whisky casks can go up as well as down.
