Guides

Market Statistics

For the last 10 years the Whisky Cask Market has yielded an average return of 12% per annum. The market has moved from the margins into the mainstream due to this consistent performance.

 

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.

According to research published by Lloyds Private Bank in 2019, 88% of their whisky customers were satisfied with the market’s performance.

The 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.

Over the period from December 2014 to June 2019, the Apex 1000 Index, which tracks the best performing rare whiskies rose by 162%, considerably outperforming the FTSE 100 (13%), Brent Crude (11%) and Gold (19%).

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.

Whisky vs Gold

Picture gold bars sitting in a vault. Now swap that image for piles upon piles of Scotch Whisky Casks. The contents of each cask will be maturing for 10 or 15 years. What do you have? A commodity that gets better, and more valuable with age.

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, a mature cask which can be bottled and consumed is worth much more than a whisky which isn’t ready for consumption.