Whisky Investment - a reasonable alternative and financial investment?
First, we want to point out that a top whisky can be a very special pleasure in good company or a good cigar and in no way belongs in the bank vault. Therefore, this little guide for beginners only the author's view is and has no claim to its correctness.
Lucrative option
Rare Whisky has become a quite lucrative option for the smart and conscious investors in recent years, has longstanding collectors, connoisseurs and prepares considerable capital gains and certainly a lot of fun, but what makes a good investment and how we find the right whiskies to a meaningful (enjoyment)-Investment medium and long term to guarantee? First, the following should be noted: Whisky pays no dividend and there is no rental yield as property - the goal is also (in addition to the pleasure) is capital growth.
Then there is the fundamental issue and a prerequisite for a successful investment: "Do you like whisky?" If not, leave it alone!
Market for whisky
The market for rare whiskies is booming worldwide and the value of the traded in the open market collectable whiskies rises continuously, the main index for Scotch Whisky - Whisky Apex 1000 - rose last year by 14%, surpassing even significantly the development of the top vintages of exquisite wineries from the Bordeaux. Meanwhile run rare whisky bottlings the red grape juice from the rank and also secure gold could not keep up. The special auctions for whisky at Bonhams, Krüger's and Christie's achieved some new records in particularly rare or old whiskies. But these, one should not be fooled, the purchase or the investment in whisky harbors like all investments also dangerous - the selection should be made judiciously and carefully. As first principle is certainly the choice of the quality of the bottling, bottles with highest quality will always find a buyer and as a large part of the liquid gold is consumed, taking the available quantity of old and special whisky over the years continuously. The next factor is the edition of a whisky is considered - a Single Cask Scotch Whisky with a circulation of only a few copies of a famous distillery is indeed in the acquisition usually more expensive, but provides the low quantity certainly more potential and is preferable to the standard bottlings definitely. The general recommendation is to limit directly from the distillery on original bottlings, however, there are many outstanding old single malt whiskies of the independent bottler and a decades-long tradition of nurturing whisky specialists such Gordon & MacPhail, Duncan Taylor, Hart Brothers, Murray McDavid etc. in small numbers, where often a storage and aging of the casks was directly into the manufacturer warehouse. Especially old bottlings from the 60s, 70s and early 80s have an excellent quality and a constant increase in demand and price trend.
Alternative investment at all times
Alcohol has always been in its various forms a popular medium of exchange and has to secure investment. Whether at the time of the Wild West or during Prohibition - in the US was a good bottle of bourbon whiskey always a safe investment and stable currency. In Europe had for a long time the French cognac a similar status and was nearly as precious as gold in the twenties of the last century and at the time of hyperinflation. Over the years, the meaning of "liquid currencies" declined. Although rare bottlings of Bordeaux wineries were as expensive as rare, yet new record prices were this in recent years repeatedly achieved and during the financial crisis of the noble grape juice was again increasingly used as an alternative investment. Compared to an investment in wine, whisky has however a great advantage: the whisky holds with correct storage even more than 100 years in the bottle, without loss of flavor or consistency and the storage is much less problematic than in wine. Like many other things of everyday life are the alcoholic spirit and with the rise of emerging economies, especially China, and European lifestyles were copied. In addition to wine found due to the good storability particular whisky its way to foreign countries, has been consumed, collected and more often used as an investment, because single malt whisky has become the drink of climbers in the past five years, has become a cult drink and interest in whisky is considered almost as a revolution. This is not to standard bottlings, but mostly old and quality bottlings from the traditional whisky heartland Scotland and in recent years increasingly whisky from Japan, which are bought as an alternative investment and have the best potential. In Japanese Whisky particular specimens with unusual motifs and special artistic labels are particularly in demand. Be added to whiskies from so-called "Lost Distilleries", so distilleries that are no longer in operation. These are particularly in high demand and are less and less available. Here the choice should mainly fall on bottlings matured for longer than 20 years in the cask and were bottled in small numbers.
Whiskeys of America make a niche, here, the demand is limited almost exclusively to very old and rare Bourbon and Rye Whiskeys from less distilleries and the selection requires great expertise and sensitivity and should remain only the experienced connoisseurs reserved.
Investment
Who wants to invest in whisky, which should keep its portfolio at least five years in order to achieve good yields. The renowned auction house Bonhams advises at this point even to ten years and more, because there is beyond ten years dramatic differences and this makes possibly for a drastic development of the return on the condition achieved, that the selection of whisky is true in the portfolio. And if this is wrong, you will remain after all the enjoyment. The purchase should be made only in the whisky-shop on site or at a whisky specialist with appropriate expertise and selection.
Worldly wisdom
Among successful collectors and lovers of good whiskey, there is a philosophy of life, which reads as follows, and for many years has holdings: buy from five different distilleries three identical bottles high quality single malt whisky. One bottle to enjoy and two for storage. After three years you check the first time, if price does something and how the whisky is traded. If nothing has been done, you should drink the second bottle and wait another two years. Then again if it did not work out with the price increase, you destroy your investment completely and buy back shares!
Outlooks and Brexit
The serious whisky distillers and brands are manageable compared to wine, the quantities globally available are limited and it is assumed that in the next 8-10 years, especially in the high-price segment and the high-quality single malts even bottlenecks will. The global trend was almost completely overslept in the 90s by the manufacturers and there was a failure to build the necessary capacity in time. Particularly in old and rare single malt whiskies, the stock of distilleries empty almost rapidly, due to the worldwide increase in demand and a shrinking supply should lead to further price increases this experience shows. It will therefore be increasingly difficult to obtain the coveted bottlings of special vintage single malt whisky. However, this supply bottleneck should not last forever, the producers and companies have now responded, there were new and distilleries are still built (as of 2016 more than 30 new distilleries in the planning and construction) and extends the existing production capacities. What are the implications of the proposed referendum on United Kingdom membership of the European Union we have, it can only be speculated today. In the next 2 years or until the final implementation, not much or nothing will surely change. Then probably some will change, however. Free movement of goods could be eliminated or restricted, import and export duties are imposed, which (consequently whisky) will result in reverse to higher prices for imports from England and Scotland, and prices will rise. Whether planned investments in new distilleries and extensions all be carried out or whether one or another investor changes his or otherwise and what effect this has on the whisky market, it can currently probably only be speculated. However, due to the weak pound sterling can be assumed that is already expected soon with a corresponding adjustment or price increase.
But nothing will change and probably even cause that the demand will raise particularly in old bottlings from the 60s, 70s and 80s, with small numbers next to the demand and popularity of vintage single malt whiskies, special whisky rarities and rare bottlings.
Which manufacturer or whisk(e)y are recommended?
Lucrative option
Rare Whisky has become a quite lucrative option for the smart and conscious investors in recent years, has longstanding collectors, connoisseurs and prepares considerable capital gains and certainly a lot of fun, but what makes a good investment and how we find the right whiskies to a meaningful (enjoyment)-Investment medium and long term to guarantee? First, the following should be noted: Whisky pays no dividend and there is no rental yield as property - the goal is also (in addition to the pleasure) is capital growth.
Then there is the fundamental issue and a prerequisite for a successful investment: "Do you like whisky?" If not, leave it alone!
Market for whisky
The market for rare whiskies is booming worldwide and the value of the traded in the open market collectable whiskies rises continuously, the main index for Scotch Whisky - Whisky Apex 1000 - rose last year by 14%, surpassing even significantly the development of the top vintages of exquisite wineries from the Bordeaux. Meanwhile run rare whisky bottlings the red grape juice from the rank and also secure gold could not keep up. The special auctions for whisky at Bonhams, Krüger's and Christie's achieved some new records in particularly rare or old whiskies. But these, one should not be fooled, the purchase or the investment in whisky harbors like all investments also dangerous - the selection should be made judiciously and carefully. As first principle is certainly the choice of the quality of the bottling, bottles with highest quality will always find a buyer and as a large part of the liquid gold is consumed, taking the available quantity of old and special whisky over the years continuously. The next factor is the edition of a whisky is considered - a Single Cask Scotch Whisky with a circulation of only a few copies of a famous distillery is indeed in the acquisition usually more expensive, but provides the low quantity certainly more potential and is preferable to the standard bottlings definitely. The general recommendation is to limit directly from the distillery on original bottlings, however, there are many outstanding old single malt whiskies of the independent bottler and a decades-long tradition of nurturing whisky specialists such Gordon & MacPhail, Duncan Taylor, Hart Brothers, Murray McDavid etc. in small numbers, where often a storage and aging of the casks was directly into the manufacturer warehouse. Especially old bottlings from the 60s, 70s and early 80s have an excellent quality and a constant increase in demand and price trend.
Alternative investment at all times
Alcohol has always been in its various forms a popular medium of exchange and has to secure investment. Whether at the time of the Wild West or during Prohibition - in the US was a good bottle of bourbon whiskey always a safe investment and stable currency. In Europe had for a long time the French cognac a similar status and was nearly as precious as gold in the twenties of the last century and at the time of hyperinflation. Over the years, the meaning of "liquid currencies" declined. Although rare bottlings of Bordeaux wineries were as expensive as rare, yet new record prices were this in recent years repeatedly achieved and during the financial crisis of the noble grape juice was again increasingly used as an alternative investment. Compared to an investment in wine, whisky has however a great advantage: the whisky holds with correct storage even more than 100 years in the bottle, without loss of flavor or consistency and the storage is much less problematic than in wine. Like many other things of everyday life are the alcoholic spirit and with the rise of emerging economies, especially China, and European lifestyles were copied. In addition to wine found due to the good storability particular whisky its way to foreign countries, has been consumed, collected and more often used as an investment, because single malt whisky has become the drink of climbers in the past five years, has become a cult drink and interest in whisky is considered almost as a revolution. This is not to standard bottlings, but mostly old and quality bottlings from the traditional whisky heartland Scotland and in recent years increasingly whisky from Japan, which are bought as an alternative investment and have the best potential. In Japanese Whisky particular specimens with unusual motifs and special artistic labels are particularly in demand. Be added to whiskies from so-called "Lost Distilleries", so distilleries that are no longer in operation. These are particularly in high demand and are less and less available. Here the choice should mainly fall on bottlings matured for longer than 20 years in the cask and were bottled in small numbers.
Whiskeys of America make a niche, here, the demand is limited almost exclusively to very old and rare Bourbon and Rye Whiskeys from less distilleries and the selection requires great expertise and sensitivity and should remain only the experienced connoisseurs reserved.
Investment
Who wants to invest in whisky, which should keep its portfolio at least five years in order to achieve good yields. The renowned auction house Bonhams advises at this point even to ten years and more, because there is beyond ten years dramatic differences and this makes possibly for a drastic development of the return on the condition achieved, that the selection of whisky is true in the portfolio. And if this is wrong, you will remain after all the enjoyment. The purchase should be made only in the whisky-shop on site or at a whisky specialist with appropriate expertise and selection.
Worldly wisdom
Among successful collectors and lovers of good whiskey, there is a philosophy of life, which reads as follows, and for many years has holdings: buy from five different distilleries three identical bottles high quality single malt whisky. One bottle to enjoy and two for storage. After three years you check the first time, if price does something and how the whisky is traded. If nothing has been done, you should drink the second bottle and wait another two years. Then again if it did not work out with the price increase, you destroy your investment completely and buy back shares!
Outlooks and Brexit
The serious whisky distillers and brands are manageable compared to wine, the quantities globally available are limited and it is assumed that in the next 8-10 years, especially in the high-price segment and the high-quality single malts even bottlenecks will. The global trend was almost completely overslept in the 90s by the manufacturers and there was a failure to build the necessary capacity in time. Particularly in old and rare single malt whiskies, the stock of distilleries empty almost rapidly, due to the worldwide increase in demand and a shrinking supply should lead to further price increases this experience shows. It will therefore be increasingly difficult to obtain the coveted bottlings of special vintage single malt whisky. However, this supply bottleneck should not last forever, the producers and companies have now responded, there were new and distilleries are still built (as of 2016 more than 30 new distilleries in the planning and construction) and extends the existing production capacities. What are the implications of the proposed referendum on United Kingdom membership of the European Union we have, it can only be speculated today. In the next 2 years or until the final implementation, not much or nothing will surely change. Then probably some will change, however. Free movement of goods could be eliminated or restricted, import and export duties are imposed, which (consequently whisky) will result in reverse to higher prices for imports from England and Scotland, and prices will rise. Whether planned investments in new distilleries and extensions all be carried out or whether one or another investor changes his or otherwise and what effect this has on the whisky market, it can currently probably only be speculated. However, due to the weak pound sterling can be assumed that is already expected soon with a corresponding adjustment or price increase.
But nothing will change and probably even cause that the demand will raise particularly in old bottlings from the 60s, 70s and 80s, with small numbers next to the demand and popularity of vintage single malt whiskies, special whisky rarities and rare bottlings.
Which manufacturer or whisk(e)y are recommended?
- Single Malt Scotch Whisky: Ardbeg, Balvenie, Bruichladdich, Bowmore, Clynelish, Dalmore, Glenfarclas, Glenfiddich, Glenmorangie, Highland Park, Laphroaig, Lagavulin, Strathisla, Springbank
- Single Malt Scotch Whisky from Lost Distilleries: Bannf, Ben Wyvis, Brora, Caperdonich, Convalmore, Dallas Dhu, Glenugie, Glen Mhor, Littlemill, Linkwood, Lochside, Millburn, Port Ellen, Rosebank, St. Magdalene
- Japanese Single Malt Whisky: Chichibu, Hanyu, Karuizawa, Nikka Miyagikyo, Nikka Yoichi, Yamazaki
- American Whiskey: A. H. Hirsch, Bitter Truth, Eagle Rare, George T. Stagg, Olde St. Nick, Old Rip- und Pappy Van Winkle, Sazerac, Thomas H. Handy, William Larue Weller, Wild Turkey, Willett