A new report suggests whisky casks are a better investment than gold. Whisky is one of the fastest-growing asset markets, increasing 225% over the last six years compared to gold’s 50% rise over the same period.
Whisky can retail for thousands, sometimes tens of thousands of dollars a bottle. Many whisky expressions are also highly collectible due to their small batch numbers.
Whisky cask broker World of Whisky said: “The global demand for whisky is constantly and consistently on the rise, especially in Asia where it has become a symbol of status and wealth. As the demand for whisky continues to increase, the value of rare and vintage whiskies naturally rises in correlation. With typical returns ranging from 12% to 20% per annum many investors looking to diversify have understandably expanded their portfolios to include whisky.
“Whisky has a very long history of providing steady returns to investors. Being a class that has low correlation with other assets like stocks and bonds, it is a valuable source of diversification – particularly during times of market volatility. Not being subject to market fluctuations provides reliability as a long-term investment.”
At present there are only 143 whisky distilleries in Scotland and the demand is five times the current annual supply. This deficit in supply and demand ensures continual growth of the price of high end premium casks.
Irish whiskey, meanwhile, is the fastest growing premium spirit in the world, up 17.8% opposed to Scotch at just 3.3%.
According to World of Whisky the global malt whisky market, which is predicted to reach $110 billion by 2032, is a very attractive hedge against inflation. It is also exempt from capital gains tax due to being classed as a wasting asset, meaning more profit for investors when it comes to selling. Between 2011 and 2021, the Knight Frank Luxury Investment Index listed Scotch whisky as the best-performing asset class with an appreciation of 587% among luxury collectibles.
World of Whisky Director Neville Swann said “The whisky maturing process has typically been generating returns for an exclusive community of the wealthy for hundreds of years. Historically only distillers, blenders and a select few were able to benefit from this fantastic market.
“I have opened World of Whisky to help provide private investors the opportunity to purchase both new cask or premium, branded Scotch whisky and Irish whiskey of the highest quality at wholesale rates. To provide as much security as possible, when purchasing your cask all assets are fully insured and stored in a bonded warehouse or directly at the distillery. Our team has over 60 years experience in both the investment and beverage industries which we leverage to ensure that we only work with leading award winning Irish and Scottish brands and distilleries.”