Some might consider investing in whisky rather than drinking it a cardinal sin. But with prices rising rapidly, many investors are choosing to combine their passion for the spirit with a spot of speculation.
The recent events on the US stock market, with members of Reddit manipulating the share price of GameStop, have shown how risky traditional investing can be. However, cask whiskey has far less risk and can be a very wise decision. We have a look at a few of the reason why.
In the past 5 years, whisky casks have generated an average return of 12.4 per cent per annum, with popular distilleries delivering even greater advances. Few tangible assets can boast such robust levels of growth under every economic cycle.
In contrast, to assess such as precious metals, property, or art, cask whisky gets better with time and will grow exponentially in value in your portfolio. For every five years of maturation, the average cask will nearly double in value.
Whisky Casks move beyond tangible assets valued entirely based on demand, they have intrinsic value as well. Whatever the economic climate, the whisky contained inside casks can be bottled and sold.
Due to restrictions in place by the Scottish government, every cask of Scotch whisky must be held in a government bonded warehouse and carefully tracked from the time it is distilled. These regulations were established to ensure that every bottle that is labelled as Scotch Whisky can be verified as authentic and adhere to the strict standards adopted by the industry.
5. Surging Demand
Exports of single malt scotch have continued to experience robust growth that shows no signs of slowing. As demand for whisky continues to grow and distilleries struggle to ramp up production, the need for casks of matured liquid will only continue to increase across the industry.
If you’re looking for an introduction to the whisky stock exchange, visit our website today.