Whiskey as an investment: How the gentle pleasure becomes a collector's object and profitable investment

People with assets have numerous options to invest or spend their money. These range from shares to real estate and art to cryptocurrencies. But even with lower amounts, it is possible to invest cleverly and later achieve good returns.

We have already reported on the possibilities of the art market ( Blue Chip Art ), fractional art investing, on the market for rarities and antiques as well as in volatile NFT cryptoma market of ​​value

In the area of ​​luxury foods and spirits, whiskey is also considered a worthwhile investment. We would like to devote ourselves to this topic in more detail today.

Whiskey is not only a noble drink to enjoy, but can also be a worthwhile investment.

Whether blended, bourbon or single, every region and every distillery has its own character and taste. Choosing the right CASK and storage over the years can increase the value of a whiskey. Gin, rum and Irish whiskey can also act as asset.

Why whiskey as an asset? Is an investment worthwhile?

Whiskey as asset? Why not! Whiskey is no longer just a drink, but also a worthwhile investment option. More and more people are opting for the purchase of rare and limited whiskey collections as a form of investment.

Luxury products such as works of art, historical cars and exquisite wines have long been considered potentially profitable and commonly referred to as "alternative investments" . Now the so -called whiskey, the water of life, is also added to wine with its promising returns.

This alcoholic asset has now attracted the attention of investors .

Alternative investments?

Alternative systems usually behave differently than conventional markets. You can lead to wider diversification of a portfolio, higher returns and greater capital growth.

This is where investments in Fasswhisky come into play. Whiskey barrels represent an alternative system that can contribute to the diversification of portfolios. Whiskey has already fulfilled his role as a clever diversifier during the past crisis times and will continue to do so.

It harmonizes well with more traditional investments. In uncertain times, the investment in whiskey barrels can be a good option.

Whiskey industry in the upswing

The whiskey industry has experienced a strong upswing in recent years, which is due to a growing demand for premium spirits, especially single malts from Scotland .

Scotch is known for its quality, authenticity and origin. The storage of the whiskey in barrels is an indispensable part of production and these supplies continuously increase. This results in investment options.

With increasing age, whiskey becomes a different and more valuable product. It begins as a fresh spirit when it first distillation. As soon as he three years old , he can be classified a Scotch whiskey

Over time, the flavors continue to develop and constantly improve the basic product. This improvement together with the increasing demand for high -quality whiskey means that stored whiskey gains value over time.

both the volume and the strength of the whiskey decrease over time ( Angel's Share

The importance of Scotland for the whiskey industry

Scotland is of an outstanding importance in the international whiskey industry. Hardly any other region in the world can come up with such a long and traditional story in the production of first -class Scotch whiskey.

's call as a home of the whiskey is known worldwide and enjoys the highest reputation. The reason for Scotland's special importance is primarily in the optimal climatic conditions that are essential for the production of high -quality single malt scotch.

The rough Scottish climate ensures that the barrels are exposed to constant temperature fluctuations during the maturation of the whiskey, which in turn leads to an intensive taste experience. water also plays a crucial role in distilling the Scottish whiskey.

The numerous clear mountain rivers and sources provide pure and soft water that is essential for the quality of the end product. This natural gift in Scotland contributes significantly to the variety of flavors and purity of the Scotch whisse.

long tradition and experience of Scottish distilleries also testifies to its importance for the industry. Many distilleries have existed for several centuries and have perfected their craft over the course of this time - from the traditional production methods and the use of the latest technologies to refine their product.

The high quality and the distinctive taste of Scottish whiskeys have meant that it is considered a synonym for exclusive enjoyment worldwide. The demand for Scottish whiskey is therefore continuously high and the export numbers speak for themselves.

A region in particular is particularly important within the Scottish national borders. The area in the northeast of Scotland, which extends along the Majestic River Spey, is widely known and valued as Speyside .

Here you can find almost half of all distillery in Scotland - an impressive number of distilleries in a confined space. This high concentration of whiskey distilleries makes the Speyside an independent region within Scotland.

The importance of the Speyside for the Scottish whiskey industry cannot be emphasized enough. With her long tradition and rich inheritance, she has developed a permanent place among the most important whiskey regions worldwide. The success of the Speyside is partly due to the fact that some of the best known and most respected distilleries are located here.

Names like Glenfiddich , Macallan or Balvenie sound familiar to every lover of noble drops. These renowned brands have found their origin in the fertile nature of the soil and the unique climate of this magical landscape.

But it is not only the high number of distilleries alone, but also its production capacity, which makes the Speyside so special. Every year an enormous amount of the finest single malt scotch whiskey is made here.

Replacement and return for rare whiskey since 2008

Whiskey as an asset is becoming increasingly popular. But what about the performance of whiskey?

In the past, the returns from these investments were highly high in statements from several sources; However, you should consider that results cannot be guaranteed and that such investments are also subject to fluctuations and risks.

According to The Scotch Whiskey Industry Review (Alan S. Gray), ripening barrels had achieved an average return of 8–9 % per year in the past decade. Unfortunately, we could not find out the release date of this statement in order to correctly classify the reference period of ten years.

The annual Knight Frank Wealth Report emphasizes rare whiskey as a worthwhile collector's object. The Knight Frank Luxury Investment Index (Kflii, Q4 2018) shows that less often whiskey is far ahead in comparison to the increase in value for other luxury goods (art, coins, cars, wine, ...). the best performance for a decade

The Knight Frank Rare Whiskey 100 Index contains 100 bottles of the most sought -after rare Scottish whiskey in the world and captures the actual British auction prices of these bottles. Over a period from 2008 to 2018, he found that the value of these bottles had risen by almost 600 % in the ten years.

In November 2018, a unique bottle of The Macallan 1926 , hand -painted by the Irish artist Michael Dillon , was sold for the record price of £ 1.2 million.

This enormous increase in value in rarely whiskey bottles is partly due to the Asian market. According to the Scotch Whiskey Association, the sales of Scottish whiskey to India, China and Singapore rose by 44 %, 35 % and 24 % in the first half of 2018, with single malts being made up almost 30 % of the total Scottish exports.

The performance of whiskey in the past 10 years (2013-2023) with an increase by impressive +322% shows the enormous potential of this asset class. However, the Knight Frank Index recorded a decline by -4%last year (Kflii Q2 2023), which is partly due to economic factors.

However, it is important to note that some indices such as the Knight Frank Index only take into account the performance of extremely rare bottles and are therefore not representative of the entire market. In fact, the broad market has also proven to be relatively resistant and, according to the Rare Whiskey 101 APEX 1000 Index in 2023, only recorded a slight decline of -1.5%.

Top performers: Clynelish and Balvenie

Andy Simpson - the co -founder of Rare Whiskey 101 commented as follows:

Clynelish has performed well in the past 12 months and its index has increased by 3.9 %. Balvenie, on the other hand, was the outstanding brand because its index rose by impressive 22 % in the same period. ”

Furthermore, Simpson found in the Kflii Q2 2023 that high prices for bottles would continue to be paid, but no longer to the extent of hundreds of thousands of pounds, as was the case in 2018 and 2019.

With regard to the trends with rare whiskey, the expert emphasized:

In my view, the same rules for investments in whiskey still apply today like 20 years ago. ”

Worldwide recognized brands, high -quality products, limited editions and individual barriers remain unchanged - no matter what short -term developments may occur on the market.

I have always said that Scottish whiskey is a medium to long-term investment ”,

So Simpson continues.

So while short -term profits are possible, investors should take into account an investment horizon of five to twenty years.

Spectacular whiskey auctions?

In 2019, a bottle of single-malt whiskey was sold for the astronomical price of 1.7 million euros at an auction at Sotheby’s . This moment has changed the whiskey market sustainably and many visitors were surprised, as the Tagesschau reported.

The auctioned copy was an extremely rare and valuable bottle of whiskey from 1926, which comes from the Scottish distillery Macallan . This unique bottle was matured in an oak barrel for 60 years and is therefore considered the most precious whiskey in the world. It is said that there are only 14 such bottles worldwide, which makes them an absolute rarity.

In 2021, a four-dancer game Glenfiddich Single Malt from the 1950s for 830,000 pounds at the charity event The Distillers One of One under the hammer and thus set a record for Glenfiddich auctions (source: Forbes).

A short time later, a collector from Asia paid breathtaking £ 16 million for a "unique" barrel ardbeg single malt scotch from 1975 - a new world record.

What criteria determine the value of a whiskeys?

Whiskey is a spirit that is valued by many people around the world. There are numerous criteria that can drive up the price of a whiskey and make it a real luxury good.

Old

A crucial factor for the price of a whiskey is the age of the distillate . The longer a whiskey matures, the more complex and intense its flavors become. The storage is usually made in oak barrels, which gives the whiskey additional flavors.

A 30-year-old Single Malt Scotch can therefore be significantly more expensive than recent bottling of the same brand.

Distillery

distillery also plays an important role in the price of a whiskey. Well -known brands such as Macallan or Ardbeg have an excellent reputation and are known for their first -class products.

These renowned distilleries often use traditional manufacturing methods and high -quality ingredients, which is reflected in the taste. This gives you higher prices on the market.

Taste / flavors

The taste itself is of course also decisive for the value of a whiskey. A good drop is characterized by a harmonious balance of different aromas such as vanilla, smoky or fruitiness.

Complex nuances and long -lasting finishs are characteristics of high quality whiskey and make its enjoyment a special experience.

Limitation and exclusivity

In addition, limited editions or special fillings a role in pricing. Whiskeys who come on the market in a limited number or are produced especially for collectors are very popular and often achieve high prices at auctions.

Ultimately, however, it is primarily the striving for exclusivity and quality that drives the price of a whiskey up.

The production of high-quality whiskey requires time, know-how and passion on the part of the distilleries. This makes this noble drop a real luxury good for lovers worldwide.

An example of this is Scottish Islay Whiskey , which is known for its smoky note and is often filled in limited editions.

Region / origin

region also plays a role in the performance: Scotch from Scotland is particularly valuable because it has to meet certain quality standards.

In addition to single malt, there is also the blended whiskey , which comes from various distilleries and is often cheaper. Bourbon or Irish Whiskey are also among the popular varieties on the market.

The content of a barrel can be between 180 and 700 liters and thus also influences the price of the end product. During the ripening process, the alcohol content decreases and the water content increases, which favors the aroma formation.

In addition, storage plays a crucial role in the value of a whiskey: the longer it matures in a cask , the higher its market price when selling to collectors or investors.

So if you are patient, you can find a profitable alternative to conventional investment by buying high -quality whiskey.

Tips for choosing return-high single malt whiskeys

In order to successfully invest in whiskey as an investor, it is important to select the right single malt whiskeys.

Whiskey is a specialty that should only make up a small part of the investments. It is ideal that everyone who thinks about an investment in whiskey already has a balanced portfolio that contains a mixture of different assets such as cash, bonds, art objects and stocks.

Potential investors should also observe the same rules that apply to all new investments before plunging into an unknown investment class for the first time:

• Keep an eye on your financial goals!
• Be ready to survive the ups and downs of the market

In addition, potential investors should ask the following questions:

• Do I understand how I can possibly earn money when I invest in whiskey?
• Am I familiar with the risk level?
• What is my investment budget?
• Can I afford to lose my entire invested money?
• Am I financially secured if something should go wrong?

According to the Rare Whiskey 101 experts, there are 2 forms of investing at whiskey:

a) buy individual bottles

You can simply buy whiskey bottles, hoping to resell them later at a higher price. Of course, the key is to purchase the right bottles - usually from well -known distilleries in limited editions.

In the area of ​​interest, Single Malt Scotch makes up most of the market (investors tend to avoid mixtures of malt and grain whiskeys). This is because countries like Ireland and Japan produce a considerable amount of whiskey, but the investment interest in these drinks is lower.

b) buy in barrels

A second way of investing in whiskey is to buy it.

Distribution enables private investors to buy whiskey barrels in order to obtain capital. The value of the whiskey increases with increasing age due to the better taste and increasing rarity.

The investment can be made directly via a distillery or a specialized broker.

An example of this is the Whiskey & Wealth Club (W&LC) , which buys premium whiskey at reduced prices from renowned distilleries. As soon as the whiskey has matured, an investor can decide whether to sell it back, fill it privately, keep it as a collector's item.

When buying barrel whisky, it is important to ensure that the broker has the required tax license for the warehouse country.

What are the three types of whiskey?

There are three types of Whiskey: Scotch , Bourbon and Irish Whiskey . Scotch is a whiskey that is made in Scotland. It is made from painted barley and has to ripen in oak barrels for at least three years. There are different types of Scotch, such as single malt or blended scotch.

Bourbon is a kind of American whiskey that is made from at least 51% corn. He also has to mature in oak barrels, but for at least two years. Bourbon mainly comes from Kentucky in the USA.

Irish whiskey is made in Ireland and consists of a mixture of painted and unmistaked barley and other types of grain. It must be stored in oak barrels for at least three years.

In contrast to Scotch, the Irish Whiskey malt dried the malt over gauch, which gives it a characteristic taste.

Every kind of whiskey has its own characteristic features and aromas that make them unique. Whether you prefer Scotch, Bourbon or Irish whiskey - it is definitely worth trying them all once!

From a pleasure point of view, what is the best whiskey?

There is no clear answer to what the best whiskey is because every whiskey lover has different preferences. It also depends on the type of whiskey you prefer: Bourbon, Scotch, Irish or Rye.

However, some of the most popular and high-quality whiskeys are Scotch-Whiskeys like Lagavulin 16 years old, Macallan 18 years old and Glenlivet 18 years old. These whiskeys have a complex taste and a long tradition in Scotland.

Bourbon lovers swear by brands like Maker's Mark , Woodford Reserve and Knob Creek . These whiskeys have a sweeter taste as a scotch and are usually made from corn.

Jameson a classic for fans of Irish whiskeys Other high -quality Irish whiskeys are Redbreast 12 years old and Green Spot . These varieties usually have a softer taste as a scotch or bourbon.

Rye Whiskey has gained popularity in recent years. Some of the best Rye Whiskeys are Sazerac Rye , Bulleit Rye and Knob Creek Rye .

Ultimately, the choice of the best whiskeys depends on individual preferences. However, it is always worth trying and experimenting different ways to find the perfect whiskey for yourself.

What is the difference between whiskey and whiskey?

The difference between whiskey and whiskey lies in the origin and spelling. Whiskey is produced in Scotland, Canada and Japan, while whiskey comes from the USA and Ireland.

The different spellings reflect the origin: "Whiskey" without "e" for Scottish, Canadian or Japanese whiskey, while "whiskey" is used with "E" for American and Irish whiskey. Another difference is in the raw materials used in manufacture.

Scottish whiskey is made of painted barley, while Irish whiskey is often made of painted barley and unpainted grain such as corn or wheat.

American bourbon whiskey is mainly made from corn. The type of distillation also differs between the different types of whisk (e) y. Scottish single malt whiskey is distilled twice, while Irish Pot Still-Whiskey is distilled three times.

In summary, it can be said that the differences between whiskey and whiskey exist due to their various countries of origin as well as their different raw materials and distillation methods. However, there are also similarities such as the long maturation duration in oak barrels and the high alcohol content (usually 40% or more).

Source directory:

• The Scotch Whiskey Industry Review , https://www.scotchwhiskyindology.com/index.htm
• Scotch whiskey association , https://www.scotch-whisky.org.uk/
• The Knight Frank Luxury Index (Kflii), Q4 2018 and Q2 2023, Knightfrank.com/Research
• Rare whiskey 101 apex 1000 index (Nov. 2023), https://www.rarewhisky101.com/indices/market-performance-indices/rw-apex-indices
• Tagesschau : noble whiskey as an alternative investment , https://www.tagesschau.de/wirtschaft/finanzen/whisky-alternative-anlagen-100.html
• Forbes Advisor : Whiskey as An Investment: All You Need To Know , https://www.forbes.com/uk/advisor/investing/whisky-as-an-investment-all-you-need-to-know/

Joachim Rodriguez y Romero

Owner and managing director of Kunstplaza. Publicist, editor and passionate blogger in the field of art, design and creativity since 2011. Successful conclusion in web design as part of a university degree (2008). Further development of creativity techniques through courses in free drawing, expression painting and theatre/acting. Profound knowledge of the art market through many years of journalistic research and numerous collaborations with actors/institutions from art and culture.

www.kunstplaza.de/