Whisky Investment Soars In Value Over Decade By Nearly 400%

Investors who have had their money in whisky for a number of years will be pleased to hear their assets are likely to have soared in value.

This is because Knight Frank revealed rare whisky bottles have experienced the greatest increase in value over the last ten years, rising by 373 per cent. 

Its Wealth Report 2023 looked at investments following the impact of Covid-19. The pandemic undoubtedly affected market performance and asset values, and resulted in a huge increase in interest rates last year. 

This, in turn, led to a change in investor behaviour, as people wanted to put their money into a secure market or release their assets. As a result, markets plummeted and wealth among investors fell. 

Despite this, Knight Frank says: “Now is the time to look beyond the crisis. We believe that investor sentiment will brighten as interest rates are seen to peak.”

Analysing recent data and expert insights, the report provides interesting findings and informed forecasts. 

One thing it did anticipate is for cars and art to increase in value in 2023, as its Luxury Investment Index rose by 16 per cent last year. 

It noted that whisky investments enjoyed a three per cent increase in asset value in 2022, with prices stabilising after soaring over the last decade.

Knight Frank predicted rare whisky could have a rebound in 2023, with 18 per cent of UHNWIs (ultra high-net-worth individuals) interested in investing in the equity this year. 

According to the Wealth Report, the value of art rose by 29 per cent in 2022, followed by cars at 25 per cent, and watches at 18 per cent. However, whisky had the highest ten-year increase across all assets. 

One of the most lucrative investments of the year was the sale of The Macallan The Reach at Sotheby’s. This 81-year-old single malt sold for $300,000 (£245,196). 

This is the oldest whisky produced by The Macallan, having been distilled in 1940, during the Second World War. Consequently, it has great historic value, with the distiller claiming: “The Reach is testament to our history, ingenuity and unmistakable strength of character.”

It was drawn from a single cask, and has been maturing there for the last eight decades. This gives the whisky a “complexity”.

“There is a rich, sweet smokiness, attributable to the peat used when malting the barley and firing the stills during this period in time,” a spokesperson from The Macallan stated, adding: “The smoky note is subtle but unmistakable, complemented with antique oak.”

Kirsteen Campbell, who is the master whisky maker at The Macallan, stated that working on The Reach has been a career highlight, adding: “It’s hard to put into words how truly special this whisky is.”

So special, in fact, that a bottle of the auburn liquor far exceeded expectations when it was auctioned at Sotheby’s in October. Despite being given an anticipated worth of between £110,000 and £200,000, it went for £45,000 more than the highest estimate. 

If you are looking for an alternative investment to put your money in this year, this news could encourage you to consider whisky cask ownership.

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