Whisky has experienced a remarkable transformation over the last decade,
and records for the most expensive bottles have been broken as the global
whisky market goes through incredible growth. As a result, there have been
increased opportunities for investment in bottles and casks.
However, before success stories such as 59-year-old Roger Parfitt’s 4,700
per cent return on his cask whisky investment in 1994 have you reaching for
your cheque book, it’s always vital to remember that any investment
opportunity comes with risk.
Cask whiskey investment has received a lot of attention as an investment
opportunity, and there has been a plethora of ads and marketing promising
similar returns on cask investments, making it sound almost like free
money. We have a look at some tips to avoid being tricked into forking over
for unremarkable casks that have low returns.
*1. Avoid firms that mention a ‘586%’, ‘564%’, or ‘562%’ 10 Year ROI*
Some investment marketing will say that whisky is a high-performance
alternative, and claim ROIs of 586 or 564 per cent, but this figure, quoted
from the Knight Frank Rare Whisky Index is from figures from the 100 most
rare and desirable bottles and does not include the market potential for
*2. Beware claims of ‘guaranteed returns’*
Some firms may quote annual returns of anywhere between 10 and 20 per cent
on cask investments, but this is a misleading figure, and there are
currently no reliable or recognised measurements of overall cask investment
*3. You don’t own a whisky cask without a Delivery Order*
A Delivery Order (DO) is a written contract between the cask seller and
buyer and addressed to the warehouse keeper who is storing the cask,
confirming the transfer of ownership. Without a DO, a buyer doesn’t legally
own the cask.
A few brokers and companies may issue an ‘ownership certificate’, however,
it doesn’t have any legal merit, it’s just a fancy piece of paper.
Though investing in whisky casks is a riskier proposition than may be
advertised, it’s still possible to do so responsibly and enjoy the results
years down the line. However, like any investment situation, it’s important
to do the proper research first before putting money down.
If you’re interested in cask whisky investment and looking for more
information, *visit our website today*.