Today’s whisky markets are not just about investing, but it is also about speculation. Many people are willing to pay a lot of money for whisky bottles that they can resell at a much higher price in the future. Investing and speculation come with some risks involved. It is a long-term process that requires one to have patience, perseverance, and luck. The potential for success and profit for this type of investment lies in the fact that stocks can be bought and sold at different prices. Prices fluctuate with demand and supply once it’s mature. And the longer you can hang on to your assets, the better off you will be.
To amp up your portfolio with an investment, here are eight winning strategies you must remember:
- Why Investing In Whisky A Good Idea?
Investing in the appropriate new-made scotch may return more than a quarter of a million dollars over the course of a decade. Many whisky investors see it as an opportunity to earn money by trading a product they appreciate.
As long as you’re eager to learn about whisky, you’ll have a better grasp on why particular bottles appreciate in value over time.
- Whisky Investment Fundamentals
There are two main ways to invest in whisky: using platforms like Whisky Cask Club or buying and selling whisky on your own.
Every approach comes with its own set of perks. Third-party platforms store your assets for you, so you don’t have to figure out where to keep the bottles. They also have insurance and safety measures in place, and your stock is checked on a regular basis.
If you want to buy and sell things on your own, you’ll need space at home. This might not be a problem if you only have a few bottles to store, but it gets harder as you buy more whiskies.
Still, if you do it yourself, you get to decide how to trade your bottles. You could sell on websites like eBay, at regular auctions, or directly to people.
If you do decide to store your own whiskies, you should find a place with a steady temperature (usually between 15-20°C) and out of direct sunlight. A cellar that stays between 15°C and 18°C is ideal, but a shelf in a dark part of the kitchen often works just as well.
You should also keep bottles standing up most of the time, but turn them once a month to keep the cork from drying out. Whisky can often be kept for a long time without being opened.
In contrast to wine, if a whisky has been aged in a barrel for 15 years and then preserved on a shelf for 100 years, it will still be regarded as a 15-year-old whisky.
- Types Of Whisky Investments
When it comes to investing in whisky, one of the most common methods is to purchase a bottle, wait a few years, and then resell it. Like fine wines, premium whiskies are divided into vintages. Due to inflation, a whisky bottled in 2020 will be worth significantly more in 2040 than it would be today.
Investing in whiskies that are naturally unique, such as those from defunct distilleries or limited editions commemorating royal weddings, might provide higher profits faster. If you’re not familiar with the market, the “waiting game” strategy may be simpler to master.
However, you can’t depend just on the bottles you’ll find in the grocery store. Those prices are likely to remain stable, and you won’t be able to recoup much of your investment. Visit the Whisky Cask Club website to learn more about how vintages increase in value over time.
- The Basic Principle of Investing
You should only invest money you can afford to lose, just as with any other investment. Do some study and then get your feet wet in the realm of whisky investment by investing little amounts. Don’t spend money you can’t afford to lose. Even if you see some short-term gains, most investors are in it for the long haul.
Keep your hopes modest in the beginning, but if you can earn a little money in a year or so, you may raise your expectations. You might make a lot of money and have a lot of fun learning about whisky at the same time.
Remember to avoid the temptation to “taste” too much of your own stock by starting small and being realistic.
- Whiskey Flipping
Whiskey flipping is a great way to get started in the whisky business! Flipping is a frequent word used to describe the practice of purchasing limited-edition alcoholic beverages with the goal of storing them and then reselling them for a higher price later.
There are some who go out of their way to seek out and buy and sell limited edition whiskeys, and there are others who have long-aged whiskeys handed down to them from family or friends. Even if you don’t own a distillery, whisky flipping is a technique to improve your or your business’s earnings from the selling of alcohol.
- Storage Solutions
For the most part, unopened whisky retains its quality for a lengthy period of time. The best way to ensure that your whisky stays at its optimal quality is to keep it correctly. A whisky bottle should never be opened for investment reasons, and the bottles should always be kept upright to prevent any contact between the cork and the liquor within.
Keeping this in mind, the right whisky storage solutions may be quite beneficial to your company. If you’re planning to invest in high-quality whiskies, you may as well employ efficient liquor storage methods to keep them safe. In the short term, this may be a more expensive alternative, but in the long run, you may be able to stockpile a bigger quantity of whisky to distribute later.
- Learn About the Business
Understanding the industry is the greatest approach to guarantee that your whisky investments are well-founded when the time comes to invest in high-quality spirits. Researching the performance of significant distilleries, the market in general, and the most sought bottles is strongly recommended.
Considering your financial objectives might help in the decision-making process when it comes to selecting the best investment option.
- Capitalize on Longevity
There are a variety of strategies to make money from your whisky investment. Bottles, casks, and distillery shares all fall under this category. As a result, each sort of investment has its own set of pros and downsides to consider. Bottles may be a better long-term investment option than casks, depending on your company or financial objectives.
Investing in second-hand whisky is a game of time and patience, just like any other. If you’re hoping to get in on the ground floor, keep an eye on the market and the newest whisky releases from distilleries you’re interested in. Set yourself up for success and discover riches in whisky investments sooner by doing so.