So, you sincerely appreciate whisky and fancy yourself somewhat of a connoisseur; you’re even thinking of buying whisky barrels to add to your collection. But will this investment go down as quickly as your favorite drink, or will you end up with a financial hangover in the morning?
Here is everything you need to know about this particular asset type.
Why Are Whisky Barrels An Attractive Investment?
According to Michael Haldane, Managing Director of Global & Local The Investment Experts, the whisky industry definitely has nothing to do with economics. People cannot deny that whiskies taste great. Thus, the recent six months’ worth of national and international events have benefited the whisky industry’s expansion.
To have access to casks is a fascinating advantage. It’s 195 liters of vodka, and the more time it spends aging, the better it tastes.
As a group, they benefit individuals all around the world. It’s estimated that more than 500 million liters of whisky are consumed annually, with Scotland, the birthplace of whisky, accounting for 13 million liters. Moreover, no tax is due on selling whisky barrels.
Whisky Barrels vs. Whisky Bottles
An object like a bottle never changes its age. If a bottle of whiskey claims to be eight or nine years old, that’s how old it always is. It matures when a barrel is left in the wood for a while. This means that for the first 36 months, it is not referred to as whisky. Vodka is vodka, plain and simple. For this reason, the wood improves with age. In other words, if you purchased a bottle of whisky that was eight years old and you held it for nine years, seventeen years old, the whisky in the barrel would be far more valuable than the bottle.
How to Select Appropriate Cask?
The cost and duration must be considered. When whisky is appropriately aged (between 10 and 18 years old), it sells like hotcakes.
In other words, I think the whisky is best enjoyed after being aged for at least five years after purchase. As a result of spending your money, you will get a variety of whiskies fromLowland Scotland, Highland Scotland, and elsewhere, as well as whiskies made with various kinds of wood. Many different types of wood, including bourbon and wine barrel wood. Ultimately, a business will buy your whisky and pour all 195 liters into bottles. And it is not limited to well-known brands such as Johnny Walker or Regal.
A good rule of thumb is to purchase a cask somewhere from the age of five to eight and to sell it anywhere from the age of twelve to fifteen. Once in a while, you’ll find a great barrel you must have. However, a cask is not like a bank’s set interest rate. The annual income is not guaranteed.
Whisky is priced according to its alcohol content. The longer a barrel ages, the less alcohol it produces. So ancient barrels are okay for around 35 years, after which they become dangerous. It entirely depends on your choice. So personally, I have a mix of opinions. I purchase brand-new whiskies and age them for a minimum of eight years, although my collection of barrels dates from 1998 to the present.
How to Put Money Into This Category of Securities?
First, you’ll need to determine how much you have, which will be in pounds. The price might range from a few thousand to over a hundred thousand pounds. I guess that depends.
The origins of these barrels must be investigated in terms of geography and individual tastes. Once you confirm your interest in purchasing the five barrels in question, we will send the appropriate paperwork your way. Then, photocopies of your identification, passport, bank statements, and bill of sale are required. Those should be sent to HMRC (the British equivalent of Sars). They’re even worse than we are. If everything checks out, you will be provided an order pack. The contents, location, and cask number will all be listed on the packaging. An eight-digit cask number in a four-row, eight-deep warehouse near Inverness. To provide you a pinpointed location for it.
This is followed by the delivery of an invoice and the fund’s transfer. Once it is sent, you are officially the owner of that barrel. Then, you are provided with a contract of sale, which represents your legal ownership. Finally, you are given a serial number and official paperwork stating that you are the barrel owner.