The liquid gold has increased 582 per cent in the past 10 years prior to 2019.Considering there are over four barrels of whisky per person in Scotland, determining the finest whisky for investment may be a difficult task. Unless you consult with specialists.
According to Knight Frank’s The Luxury Investment Index 2020, the value of rare whisky has increased by 40% in the last year, outperforming luxury assets such as watches, art, and automobiles.
But what makes purchasing the finest whisky so exceptional?
In an attempt to revolutionize the way people see investments, Steve Bishop, founder of Elite Wine & Whisky in the United Kingdom, tells The CEO Magazine, “Why not?”
“Historically, in the decade before 2019, the value of old cars increased by 258%, coins by 193%, and art by 158%, while the value of rare whisky increased by 582%,” Steve explains. The value of worldwide Scotch Whisky exports increased by 4.4% to £4.91 billion (US$6.8 billion) in 2019, with growth in more than 100 overseas markets. It was not always a worldwide commodity, though. The oldest manufacturing goes back to 1494, but it was not introduced to the rest of the globe until the nineteenth century.
Historically, “whisky” is associated with Scotland, while “whisky” originates from Ireland; nonetheless, the latter spelling is more prevalent in the United States today. Every second, 42 bottles of Scotch whisky are shipped to 175 destinations, totaling 1.3 billion bottles each year; the United States and Asia are the largest consumers and importers. It is perhaps surprising that the value of the greatest whisky has increased throughout the COVID-19 epidemic, given its illustrious history spanning centuries and surviving wars and social instability.
“Whisky is used both in times of elation and sorrow, thus the general market has remained positive throughout the years,” adds Steve. “Because the price of whisky rises as the barrels age, the asset has the capacity to retain its worth even during uncertain times.”
During periods of lower whisky production, barrels become rarer and more in demand and may thus be sold for greater prices. This indicates that once matured, the price of whisky made in the preceding year may be greater than in prior years.
The Finest Liquid Gold
Some very rare bottles of the finest whisky even fetch eye-popping seven-figure prices.
In 2019, The Macallan 1926 was sold for an unprecedented £1.5 million (US$2.1 million). But why is this premium whisky so expensive?
“It is exceptional in that the Spanish oak sherry hogshead was filled in 1926, and the beverage was aged for 60 years before being released in 1986,” notes Steve.
Regular whisky, on the other hand, must be aged in casks for at least three years by law, but most are aged for at least eight years to develop flavor.
“A whisky that’s been aged for 60 years before it’s bottled has a flavor profile that’s much more complex than other vintage whiskies,” he says. “This makes it very rare and collectible.”
According to Steve, The Macallan 1989 is the most coveted cask Elite Wine & Whisky has ever acquired.
“It had a shockingly high alcohol content and a tremendous amount of volume within the barrel,” he says. “This indicates that the barrel will definitely mature beyond 50 years, which is highly uncommon and unusual for whisky manufactured in the 1970s and 1980s.”
Following this era, huge corporations acquired distilleries and substantially invested in technology, like barrel programs, to ensure the life of casks.
This means that whisky that could age for so long before modern technology was invented is very rare and is sold at a much higher price as a result.
As interest in investing in the greatest whisky continues to rise, the sort of investor who has altered the most over the last decade is the type who has shifted the most.
Accessibility and popularity have led to the formation of the “new” investor.
“Previously, the business was dominated by collectors and aficionados. However, we’ve seen that the market has been opened up to ordinary retail investors as a result of the growing popularity of alcohol investing and the resulting media attention,” Steve explains. “It’s been exciting to watch and be a part of this movement, and we hope that it will continue to grow as we continue to teach new investors about it.”
How To Invest In The Best Whisky
The whisky specialist has spent the previous nine years imparting his vast expertise to investors eager for information. Here are Steve’s secrets to liquid gold.
Taste Test
“In order to comprehend an investment, it is essential for investors to get first-hand experience. Due to the unadulterated nature of the product, conducting informative virtual tastings is feasible. This not only gives investors the opportunity to comprehend their investment from a fresh viewpoint, but it also enables them to feel a part of the investment they are making—something that is very rare in general financial markets and in the whisky industry. “
Know What To Look For
“It is essential to seek for a spirit with a high alcohol by volume, as this will ensure its life. If you want to age the spirit for anywhere between five and fifty years, a spirit with a high ABV at any level of investment will provide the most potential for development.”