In the world of whisky investments, it’s typicality the bottle sales that make the headline news. Individual whisky bottle sales break records every year, and rare bottles from Japanese and Scottish distillers lead the way.
But when looking at long-term investment opportunities, few people would be lucky enough to get their hands on a bottle of Macallan 1926 Fine and Rare 60 Year Old, which is expected to go for over £1.2 million at auction soon. So, what about the lesser-known category of cask investment and ownership? Which is the best option for long term returns?
Whisky bottle investment is the more common form of investment. Distillers all around the world have their own core releases and older bottling are limited. The most collectable bottles come from Macallan, Karuizawa, Yamazaki, and Dalmore distilleries.
Collectors will build huge bottle collections that are often treasured and placed on display, and for short term profits, bottles can give great returns.
However, bottle collecting has its downside. Shipping and moving bottles is difficult. Shipping is always a danger, especially when shipping high priced bottles that insurance just cannot cover. Shipping means paying customs and taxes which can get astronomical for high-value bottles.
Large collections also require their own space and, for safety, they are usually insured. Bottles increase in value, but they do not age further after they are bottled. This means that the growth of each bottle depends heavily on the brand’s popularity and not the ageing liquid.
Casks are a lesser-known category of whisky investment, and relative youth of the cask whisky investment market makes it an attractive investment option as competition for casks is yet to reach its peak, and thus steep price increases are often seen on the secondary market.
Unlike bottles, casks require no personal storage space or shipping as they are held in bonded warehouses and maintained by warehouse professionals. This also provides investors with complete confidence that the cask they are purchasing is 100 per cent authentic. Bottles can be faked or forged, but casks cannot.
Casks are whisky’s maturation container, and so continue to age over the years. So, even though a brand may not grow increasingly popular, the liquid will be ageing and thus becoming more valuable. Should the brand’s popularity also increase then profits can grow exponentially.
Which investment is best for long-term returns?
The best investment means the one that yields the highest profits and can be monitored and calculated continuously and smoothly, with minimal risk. Based on these points above, casks win over bottles for long-term investment. Come and talk to us today to reap the benefits of whisky cask ownership.