Whisky Investment: Is It Worth It? – Insights into Investing in Rare Whiskies
*Disclaimer* – This is not financial advice. I am not a financial advisor, nor is anybody else on the Great Drams team. If you are thinking of investing in whisky, please seek professional advice and speak to a financial advisor.
As regular readers of the blog will know, I’m not, nor have I ever claimed to be, a financial advisor. I know the basics of investing in general, and know more than most about whisky investment, which is what I want to look at today.
When we think of investing, we think of Stocks and Shares, the FTSE 100, S&P 500, gold, crypto, and fine art. While those are common things to invest in, there are plenty of people out there that invest their hard-earned money in whisky, specifically, rare whiskies.
Investing in the right whisky, at the right time, can yield impressive returns on your investment. At the same time, though, investing in whisky is not a guaranteed return at all. Investments can go up as well as down, so only invest what you can realistically afford to lose.
So, is whisky investment worth it? Hopefully now that I’ve covered myself legally, here are a few insights into rare whisky investment.
Is Whisky Investment Worth It?
While there is no definitive answer to this question, what I can tell you is that there are plenty of people out there who have invested in rare whiskies, sold them at auction, and made very handsome profits.
Not to be a Debby Downer, but there have also been people out there who invested in whisky, sold it at auction years later, and made less than they paid in the first place. Some may not have even sold at all.
Historically speaking, whisky investments have proved lucrative, with rare whiskies outperforming wine, equities, and gold in the Knight Frank Luxury Investment Index.
It was only last year that a bottle of whisky, The Macallan Fine & Rare 1926, sold at auction for over £2 million! With the global whisky marketed projected to be worth $84.5 billion in 2025, there is certainly plenty of demand for this amazing tipple that we know and love so much.
If done correctly, investing in rare whisky COULD be worth it, but there are no guarantees in life.
Rare Whisky Investment Insights
If you are thinking of investing in whisky, here are a few insights into investing in rare whisky.
Know the Basics
If you do decide to invest in whisky, it’s important to know the basics. When investing, you have options. You can invest in bottles of whisky, in distillery shares, or even in casks.
Investing in bottles could be useful if you come across a whisky that is rare, or limited-edition. As supply drops, the value may increase.
If you’re getting started, investing in distillery shares could be the way to go. If you own shares in a whisky distillery, or brand, you own a small percentage of that company. As the shares hopefully increases, the value of your investment will increase with it. Share values can also fall.
Here at Great Drams, while we can’t offer you financial advice, we do offer a whisky cask brokerage service to help you buy your dream cask of whisky. Investing in casks is initially more expensive, and comes with more risk, but the returns could also be greater.
Do Your Research
While it would be great to nip down to the local off-licence, pick up a discounted bottle of whisky, wait a couple of weeks, and sell it on for double the original price, sadly whisky investment is a great deal more complex than that. This is why doing your research is so important.
Look into reputable companies and distilleries, identify brands which tend to be more valuable, and try to find out as much as you can about the whisky, you’re thinking of investing in.
Limited edition whiskies historically have performed well. Those from renowned and established distilleries have recorded annual returns of 15% in some cases. This is where established and well-known brands such as The Macallan prove so useful.
You should also look into the necessary legal documents and paperwork, looking at things like VAT, taxes, and so on.
Utilise Auctions
If you are thinking of buying or selling a whisky, use auctions to your advantage.
Most rare whiskies purchased for investment are purchased at auction. With an auction you also know that the whisky you’re investing in is genuine and authentic. You could also pick it up for a good price.
When the time comes to sell, again, auctions are the way to go as you’ll have a better chance of selling it for a healthy profit.
Store Your Whisky Correctly
Once you’ve purchased the whisky you wish to invest in, you need to make sure that you store it properly, whether in a cask or a bottle.
If storing in a bottle, keep out of direct sunlight and store at room temperature in a dark, dry place somewhere safe. Any breaks, cracks, or leakages will harm your investment. Even ripping the label could, so store it as safe and secure as possible.
As for a cask, they must be stored in a cool, dark, dry, bonded warehouse. If investing in Scotch, the whisky cask must be stored in Scotland in order for it to legally qualify as ‘Scotch’. The distillery will keep an eye on your cask so again, make sure you opt for a reputable distillery.
Know When to Sell
As far as when you decide to cash in your investment, that’s entirely down to you. Nobody can tell you when the perfect time to sell a rare whisky is, because nobody knows.
You can, however, have your investment valued and keep tabs on its growth, though when you decide is going to be entirely down to you.
Like stock markets, the value of whisky and whisky shares is constantly fluctuating. When your investment is at a number that you’re happy with, if you need the cash, or want to sell, then you go right ahead.
If you’d like to learn more about your favourite whiskies, or simply treat yourself to a wee dram or two at the same time, head on over to GreatDrams.com and take a look at what we have to offer.
With an impressive selection of limited-edition, rare, and award-winning whisky, as well as heaps of whisky info on our blog, it’s the perfect spot for all you whisky lovers out there.
Greg
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