The coronavirus pandemic has had a major impact o the global sitcom market, which has led many investors to consider looking elsewhere to invest their wealth, with shares in traditional investments sharply dropping.
Many investors have turned to the world of whiskey investment, which has seen a boom in the last decade. ask whiskey allows investors to own a commodity and asset as they look to hedge against inflation and the uncertainties of the financial markets.
The value of whiskey as an investment has risen sharply in the last ten years and has become of there most popular alternative investment opportunities. According to the 2020 index, the value of whiskey has risen by 564 per cent in the last 10 years alone. By comparison, classic cars rose in value by 194 per cent, fine art by 141 per cent, and wine by 120 per cent.
Unlike rare whiskey, the value of cask whiskey is tied to its age rather than the markets, making it appealing to investors in the current climate, with value increasing with age.
The demand and secondary markets for both Scotch and Irish whiskey have been steadily growing year on year, for example, the Irish whisky market has grown by an average of 13 per cent over the past two decades, and forecasts from the International Wines and Spirits Record (IWSR), the global benchmark for alcohol sales show that this trend is set to continue.
How can someone invest in whiskey?
Casks containing approximately 200 litres of whiskey can be purchased straight from wholesalers, allowing investors to become the full, beneficial owner.
Investing in rare bottles of whiskey, like investing in art, largely depends on the hope that the value increases. However, whisky cask ownership means there are always year-on-year returns and increases in value as it matures.
If you’re looking for more information about whisky cask investment, come and talk to us today.