Enjoying the UKV blog?
WATCH VIDEOS

Why It's a Good Time to Be Investing in Whisky Right Now?

Nov 18, 2020 2:22:43 PM / by Charles Agutter

This year, cask sales have increased greatly, with The Whisky & Wealth Club reporting a doubling of sales in 2020 compared to this time last year, for a total of 7.8million euros.

And there are tax benefits of investing and owning your own Whisky Casks.

 To say that these are uncertain economic times would be putting it mildly. The impact of the COVID-19 pandemic has already been felt across the globe and the fallout it set to extend well into 2021 and beyond. 

Gold has always been the traditional “safe haven” asset in times of crisis and indeed it is up 21% this year, a six-year high. However, for investors looking to diversify amidst the uncertainty of the pandemic, rare whisky could provide a valuable outlet. Fine wine has traditionally been the best performing of the so-called “passion assets” (alternative investment avenues that cover classic cars and rare art), but whisky has begun to pull ahead.

In 2019, rare whisky was up 40% compared to coins (12%) and fine wine (9%) and the ten-year growth has been a staggering 582%.

whisky index chart

Scotch whisky seems to be the cream of the investment crop in this regard; last year, exports reached £4.7 billion, accounting for a full fifth of all UK food and drink exports. Whilst the secondary market for whisky is relatively young, it is growing rapidly. Single bottles have begun to sell for extraordinary prices at auction; the £848,750 paid for a bottle of old malt in Edinburgh in October 2019 is almost double the record for the highest single bottle sale of a French wine.

A month later, in New York, a single bottle of Macallan 1926 fetched a record-breaking price of £1.2million.

whisky-cask-glass-smThis year, cask sales have increased greatly, with The Whisky & Wealth Club reporting a doubling of sales in 2020 compared to this time last year, for a total of 7.8million euros. The secondary market is currently being valued at over $40million according to market analysts, and the US Market in its entirety is already a $1billion industry. All these trends combined have given rise to some attractive predictions for those who would consider investing with rare whisky. The Whisky & Wealth Club itself recommends working with premium distillers in order to secure the best growth over time.

A ten-year hold time is the typical approach, similar to that of fine wine. Conservative estimates around returns put the number at approximately 16% per annum, with an annualised return on investment of 10% over ten years. The growing worldwide demand is already having an impact on the production process, with new distilleries opening yearly thanks to the investment in the market over the past decade.

If you are looking for a opportunities to diversity your investment portfolio, then buying a few casks of world-class whisky could prove to be an extremely luxurious contingency plan.

 

 

Topics: Whisky Investing

Charles Agutter

Written by Charles Agutter

UKV International

Request Whisky Investment Brochure

Recent Articles

Wine Investment Guides

intro
performance
taxation

Sign Up to UKV Wine Investment News!

WINE INVESTING VIDEOS

UKV International have produced a range of exclusive video content to support our wine investment journey and our exclusive wine investment events which we host on a regular basis throughout the year.

 

UKV Investors Q & A's

Feedback and opinions from fine wine investors and their buying and selling experience with UKV International and the wine investment services offered. 

 

UKV Wine Investment Events

Meet UKV staff and like minded investors at one of the UKV International events held throughout the year in London.  Available to existing investors only, as part of the UKV International Premier Client programme.

 

Vintage and Fine Wine Investment Explained

An insight into vintage and fine wine investing -  the leading alternative asset class, governed by a unique set of market fundamentals and possibly the investment of the last decade!

FEATURED ARTICLES

.

Take Advantage of the Fine Wine Boom in 2020!

wine-investment-graph

So, What Will The Wine Market Look Like in 2020?

According to the history books, fine wine is one of the most best performing assets of the last decade. However that doesn’t mean that the market never changes. Consumption and demand varies from country to country and emerging trends can often drive up the price of certain wines.

READ MORE

Fine Wine Investment: 4 Fundamental Rules to Success

4-rules

 There are only four fundamental ways to invest successfully in wine.

Investor behavior is determined not just by rational risk-return considerations, but also by hidden psychological biases that influence individuals to make less than optimal decisions.

FIND OUT MORE

Why do individual investors often ignore lucrative opportunities?

romanee

This behavior poses a conundrum, or seems irrational – and that’s because it is.

Alternative Investments pose an interesting paradox:  with the consistent growth and often tax-free capital gains these assets consistently deliver, why aren’t more  individual investors participating in the market to reap outsized rewards with relatively low risk?

READ MORE

.

Get the Latest Wine
Investment News & Insights to
your inbox every month!

Start your Wine Investment journey today.

UKV INTERNATIONAL AG can help select and acquire some of the best investment fine wines and champagne through our very extensive independent network of wine industry contacts.

We’re here to help potential and experienced investors who look to acquire the most prestigious vintage fine wine labels from the leading vineyards of France, Italy and Spain.

020 7471 8030

Follow Us:

GET STARTED
READ REVIEWS