can be an alluring alternative asset class. This is due to its potential for high returns. But when it comes to making an informed decision about whether it’s the right investment for you, there are several misconceptions that we commonly hear from potential investors.
Over the next few blogs, we will aim to set the record straight on the most common myths surrounding whisky investment.
Unfortunately, there are no guarantees when it comes to whisky appreciation and not every bottle or cask will increase in value. Investment-grade whiskies are typically rare, limited editions, or from prestigious distilleries.
This is one of the reasons why we only deal with the top 10-20 distilleries in Scotland – to minimise risks and maximise potential. Mass-produced whiskies are unlikely to see significant appreciation so typically yield lower potential for a return.
While age can enhance a whisky’s flavour and potentially its value, it’s not a guarantee. Other factors like the distillery’s reputation, production method, cask type, alcohol strength, and rarity play a significant role. Read our blog on older versus younger whisky for more insights.
With headlines of rare bottles making millions at auction attention grabbing, returns like these are also rare.
Far from it! Whisky investment is generally a long-term commitment much like owning a vintage car or fine art. It can take years, sometimes decades, for a bottle or cask to appreciate significantly in value.
We typically recommend investing in a cask for a minimum of 10 years to achieve full maturation and therefore the greatest potential return.
That said, there are always exceptions. One of our investors saw a 19% ROI on their whisky cask in just 18 months.
While it helps to be passionate and have an interest in what you are investing in, you don’t need to be an expert to invest.
Knowledge of the industry will mean you can appreciate your investment, but you don’t need to be a whisky connoisseur to do it successfully. What is important is doing your research, reading relevant media and undertaking due diligence. Guidance from experts, selecting the right whisky broker and staying up to date on market trends are also critical.
Our team of whisky brokers are on hand to guide customers through the process. Certified and trained by the Wine and Spirits Education Trust and the Edinburgh Whisky Academy – two of the world’s leading authorities on wine and spirits education – they can advise on not only buying but selling your investment when the time is right.
To find out more about how to invest in whisky or to speak to one of our team, get in touch.
Whisky cask investments are unregulated in the UK. The value of investments is variable and can go down as well as up. You have 14 days to change your mind and request a full refund under our cooling-off period. The volume of spirit will decrease over time (known as “the Angels’ share”). “New Make” spirit has to be matured for 3 years, during which time its alcoholic strength could be reduced. However, for the product to be classed as “whisky”, it must retain a minimum strength of 40%. Fees apply, see terms and conditions for details and terms around exiting your investment. An investor may get back less than the amount invested. Information on past performance, where given, is not necessarily a guide to future performance. The capital invested can fluctuate and the price of casks can go down as well as up and is not guaranteed. The investments and services offered by us may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from an independent financial advisor. The Whisky 1901 Ltd sale price includes a discretionary markup to cover the cost of services provided, including but not limited to, storage, movement and maintenance of casks, insurance, front and back-office software.
