Whisky Investment… Better than Gold?

Leading index for Scotch Whisky rose 14% last year, while Wine fell 0.4%, Gold was down 10% and FTSE 100 index lost 4.9%
Rare Whisky has outperformed other investments such as Wine and Gold, enjoying a record year in 2015.

The Japanese Whisky market boomed last year, with the Rare Whisky Karuzaiwa Index rising by nearly 75% in nine months. Bottles that sold for £350 12 months previously fetched more than £3,000 when they were resold. However, the boom tailed off at the end of 2015, when the index fell by 6% as prices for Japanese Whisky pulled back, reflecting the overheated nature of the market, the consultancy said.

The Macallan Estate in Speyside, which has been making single malt Scotch Whisky since 1824, remains the most traded distillery, despite losing market share. It accounted for nearly 10% of the market for bottles sold and 23% of the total value, down from 31% in 2013. In second place, Ardbeg in the Inner Hebrides, which has been producing Whisky since 1798, has an 8% share of volume and value. Bowmore, another distillery on the Isle of Islay, founded in 1779, came third.

As new releases of aged Whisky become increasingly rare, the importance of age and value has grown, the consultancy said. The older the age and the earlier the vintage, the better – even relatively poor quality old-aged Scotch is becoming more valuable. The 10 most desirable distilleries now include 7 that are no longer operational.

Why Casks?

Scotch Whisky can only be distilled and matured in one country, yet it is sold in over two hundred markets worldwide. Global demand continues to rise beyond all expectations, and the number of aged casks in Scotland continues to diminish with only 15% of the Whisky being 5 years or older. Whilst this is bad news for consumers and distillers, it means the value of casks is growing dramatically which is certainly good news for owning a cask.

Unlike the volatile market of bottled Whisky, casks have proven a much safer consideration. Spirit Traders isn’t just selling you bulk litres of alcohol or a share in a cask, we sell you the cask in its entirety which affords you the comfort of numerous exit strategies. This also means that your holding is more secure as you are not waiting for a single bottle to spike in value, but instead simply maturing the raw materials until you’re ready to realise your return.

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