Whisky investment

By LLM REPORTERS on 1st august 2019

The whisky market has been celebrating consistent growth for at least the past five years, meaning collectors and investors across the world have seen their collections improve over time. Rare Whisky 101 has been producing investment reports since 2014 and have noted considerable gains every year since. These reports include investment comparisons with such markets as Brent crude oil, the FTSE 100 and gold, showing that, in every year, the rare whisky Apex 1000 dwarfed the other markets for growth.

There has never been a better time to invest in whisky. Its intrigue is becoming increasingly prevalent across the world, even pushing in to China which has previously been a highly resistant market. Aside from the powerhouse that is Scotch whisky, emerging markets such as that of Japan are growing rapidly, meaning opportunities for investment are growing and becoming more diverse each year.

Additionally, Whisky Invest Direct notes that, since 2008, barrelled whisky has never returned less than 60% when held for at least six years. This shows the consistency of whisky as a product, as it is difficult to depreciate in quality. An 18-year-old Macallan whisky will always be an 18-year-old Macallan if left unopened, and typically older expressions are regarded more highly. For cautious investors, this also means that holding on for just the right moment holds less risk than other typical investment markets.

The Wealth Report 2019, released yesterday, shows that whisky has topped the Knight Frank Luxury Investment Index (KFLII), rising in value by 40% over the 12 months to Q4 2018.

The Knight Frank Rare Whisky 100 Index, featured for the first time in the KFLII. Compiled by Rare Whisky 101, it contains 100 bottles of the world’s most desirable rare Scotch whisky, and tracks actual UK auction prices of these bottles, finding that over the past ten years values have increased by almost 600%.

The most significant sale of 2018 was a bottle of Macallan 1926, hand painted by Irish artist Michael Dillon, that sold for a record-breaking £1.2million in November.

This growth was attributed in part of the rising interest in Scotch whisky by the Asian market, with sales of Scotch whisky to India, China and Singapore rising by 44%, 35% and 24% respectively in the first half of 2018, according to the Scotch Whisky Association, with single malts totalling almost 30% of total exports.

“The stunning price growth of rare single malt whiskies shows that the appetite for new ‘alternative’ asset classes remains strong among high-net-worth investors,” said Andrew Shirley, editor of The Wealth Report and the Knight Frank Luxury Investment Index.

“However, we are seeing growth soften for some of the other asset classes in KFLII like classic cars that had been performing exceptionally strongly. This is partly down to a slowdown in activity by speculative investors and a return to a genuine collector-driven market. Despite this, the best examples in each asset class are still setting records when they come up for sale

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