Whisky has emerged as an intriguing investment option, offering both connoisseurs and investors a chance to capitalize on the growing demand for rare and aged spirits. This unique investment avenue involves purchasing whiskey when it's newly produced and allowing it to mature over time, often appreciating in value as it gains complexity and scarcity. As the whiskey ages, its value can increase significantly Distilleries will then buy back the matured whisky from investors at higher prices than the original purchase. This investment allows enthusiasts to blend their passion for whiskey appreciation with the potential for financial gain
Here are some key points to consider if you're thinking about investing in whisky:
Long-Term Investment: Investing in whisky involves buying whisky when it is first produced and allowing it to mature over several years. The longer the whisky ages, the more it may appreciate in value.
Appreciation in Value: Whisky maturation is known to increase its value over time, making it an attractive investment option for those seeking potential capital appreciation.
Enjoyment and Consumption: The advantage of investing in whisky is that even if it doesn't appreciate as expected, you can still enjoy drinking it or share it with others.
Platform and Storage: Platforms make it easier for private investors to purchase whisky at wholesale prices and store it in a bonded warehouse under suitable conditions. Storage is typically for 3- 5 years or longer making it an investment with long term in mind. During the time you store the whisky you will be responsible for storage and insurance costs, but still expect to make a 10% annualised increase in value after costs
Liquidity and Trading: Trading platform that allows investors to buy and sell whisky with other users, offering some liquidity to the investment.
Historical Performance: Whisky as an investment has shown good returns over the years, we have seen an average of 10% but even more in the last two years with inflation price increases.
Good returns from whisky maturation have been achieved over many years, but historically only distillers and blenders could benefit. Launched in 2015, WhiskyInvestDirect changed that, by allowing private investors to buy quality whiskies at wholesale prices. Already some 5,000 users own enough to fill over 75,000 casks, that's the equivalent of 36 million bottles of maturing Scotch. Accounts range in size from £700 to £3,500,000.
Why should you invest in this? Nice alternative not effected by most market downturns
Percentage of portfolio to invest? 5%-10%
Our Risk rating? If the investment fails you can at least enjoy it 4/5
Our overall rating? 4/5
How do I start? Whiskyinvestdirect