Whisky investments surged last year, as many investors considered it the safe option compared with the fluctuating financial markets.
Scottish investment bank Noble & Co revealed that demand for rare single malts rose by more than one-fifth in 2022, proving the beverage is one of Scotland’s most valuable assets.
Head of food and drink at the bank Duncan McFadzean told the Financial Times: “Whisky still seems to be a popular asset to hold in your portfolio.”
He went on to say the most popular whisky investments were for bottles priced between £100 and £1,000. This implies younger buyers drove interest in the market, with these investors often preferring to purchase tangible products, instead of putting their money in financial markets.
Within this price bracket, volumes rose by nearly a third during the first three quarters of 2022 in comparison with the same period the year before. As a result, this drove values up by 40 per cent.
There was even greater demand for whisky as an alternative asset after the government’s mini-Budget in September, which saw the pound tumbling and rocked the markets.
Chancellor at the time Kwasi Kwarteng cut the base rate of income tax to 19 per cent, abolished the 45 per cent higher rate of income tax, committed to axing plans to increase corporation tax to 25 per cent, and scrapped bankers’ bonus caps.
Consequently, in the week that followed, food price inflation soared, FTSE 100 fell by 232, the pound dropped to 1.03 against the dollar, which was a record low, and lenders withdrew more than 1,500 mortgages from the market.
Investors who are keen to find out more about the whisky stock exchange as an alternative investment can call us to speak to one of our experts.