Why WOULD ANYONE CHOOSE Whisky Investment?
Why invest in Whisky?
Whisky Investment when you're looking for long term profits and security are a very profitable source of income - that's of course providing you don't drink the profits!
Whether you're purely looking for investment or are a whisky lover, cask investments are on the rise & very safe.
THE BEST PLACE FOR US TO START SOURCING BARRELS FOR INVESTMENT IS BY SHARING YOUR BUDGET, THIS WILL GIVE US AN OPPORTUNITY TO OFFER YOU A PREMIUM RANGE OF BRANDS TO SELECT FROM.
A Niche Investment Opportunity
Although once little known in mainstream investment circles whisky has always been one of the worlds top physical investment options. The combination of inherent value increase over time built into the product itself alongside the worlds best performing asset market has seen growth in value at staggering rates since the second world war.
Always Profitable
While always profitable whisky as an official asset class investment emerged during the financial crisis of 2008 where it not only out-performed all other traditional ‘safe haven’ investments such as gold and rare wine, but was in fact the only market to increase in value over those turbulent times. Today whisky is ranked as the most profitable of all asset class investments with the Knight Frank luxury asset report rating it as showing a 478% ROI over ten years far out performing all others.
Knight Frank Luxury Asset Report
In 2022 whisky ranks as the worlds’ number one asset class investment and when compared to the extremely bullish Hong Kong property market it out performs it by over five times the return.
As well as these high historical returns, combined with the stability of being the only market to increase in value across all financial recession periods, whisky is far from done and is now entering a period of increasing growth due to unprecedented rising demand for the end product.
How is this possible?
As mentioned previously whisky has two drivers to value increase over time. The first is inherent to the product itself, that whisky ages and matures as it is stored. Over time the quality of the spirit in the casks improves as it ages. The older a whisky gets in the barrel the better the taste of the end bottled product. This is such a driver to value that not only do brands of whisky display the ages of the spirit as a mark of quality it is a legal requirement to only age label the bottle based on the youngest spirit used in its manufacture so that that marque of quality can be assured.
As time goes by...
Each year that passes the value of the whisky increases exponentially. Double the age and you more than double the value so while a cask of top tier five-year-old whisky can be bought for £10,000 the same cask in 20 years time sells for £100,000; casks with another 20 years added have sold for several million pounds! On top of this lies the whisky market itself which is driven by, and only by, supply and demand for the end product. Bottles of drinkable whisky.
The last 50 years speaks volumes!
Over the last 50 years demand for whisky, especially single malt whisky, has risen by a staggering rate worldwide and the whisky industry has been slow to react to this increase each time it has occurred. By its nature whisky takes time to mature and one cannot simply turn a tap on to fill demand as it takes decades to mature up aged single malt. This rate of increase has accelerated beyond the capacity of the industry to keep up especially since the Japanese markets inclusion in the early 20th century. Since then the opening up of China to whisky demand has far, far outstripped the ability of distilleries to produce and this, in turn has driven prices higher and higher.
How is the Chinese Market affecting Whisky Investment?
With the Chinese market barely begun to be tapped and, now, the Indian market (the worlds largest whisky market) opening up to international non-tariff trade this trend will not only continue but is set to accelerate and the industry predicts that within five years more than half of all whisky produced will be destined for Asia and with-it prices set to increase even beyond the extreme returns already seen.
The Benefits of Whisky Investment
As well as its profitability whisky has several side benefits that make it an attractive choice for investment. While whisky the drink is sold and taxed at some of the highest rates of any product, especially in Hong Kong, whisky casks as an investment are traded ‘in bond’ outside the international taxation system and thus immune to sales taxes and other duties and when combined with the fact that whisky is considered a depreciating asset (due to evaporation during maturation) it is also immune to capital gains tax.
Is it a Secure Investment?
Also due to its location in the bonded network investing is whisky is one of the very best ways to move money legally across borders without incurring taxation. A purchase of whisky casks in Scotland from Asia and then sold again in the UK incurs no sales tax, no extraneous international transfer fees beyond the cost of the cask itself and no limitation on the amount of money transferred across the borders.
I LOVE WHISKY!
Last, and maybe not least, for the whisky lover there is the simple fact that there is a joy in owning an entire cask of single malt whisky. Not least because, should they wish it, the owner is free to have it bottled for them personally with their own name upon the label and for their own enjoyment for many years to come.