whiskey cask investment

Investing in Whiskey

As gold trades at an all-time high, it is easy to see how many people are seeking a place to hide their funds that is not cash at the bank or buried in the backyard. Even with the massive change in business and the world of finance, the wealthy are still looking for stable investments. We see rock bottom interest rates also mean saving can be hard. When a government bond gives less than a 2% return for five years, we start to look at more exotic, liquid investments.

Whiskey Barrels and Cask Investing

In the search for new investment opportunities, one can quickly find the offer from the distilleries. For them, it’s good business. They pre-sell the barrel at a discount from the bottles while avoiding having to pay for the bottling, providing access to funds now, rather than in 8 – 10 years. Of course, when a barrel can hold up to 200 bottles, and they often sell for £75 a bottle, it’s hard not to get blinded by the lights of possible riches.

whiskey cask investment

The Costs Associated With Whiskey Investing

While investing in whiskey may seem exotic and owning your own barrel would be a great conversation starter at your tasting parties. Before one embarks on the journey, it’s good to be aware of the cost. When it comes to scotch whiskey there are many thorns to catch you. Firstly it must be stored and bottled in Scotland its entire life. So, a barrel may cost you £2,500 but will it include the storage and insurance costs, can you get a sample once a year, will they send you photos of your barrel?

Also, the whiskey needs to be bottled, tax to be paid, transported and even labels made. This is known to add up to £18 per empty bottle. So, you could now have 200 bottles with a break-even price of over £30.

Invest In Whiskey For Love

Like investing in classic cars, art, wine and watches such as Rolex, people often draw pleasure from these more than the profit earned. If you love whiskey and want to have your cask because it calls to you, then many clubs are set up to help.

Craft Whiskey Club

For the starting price of £79, you can invest in “shares” in various casks of whiskey. These are conveniently expressed as bottles, and for the price in 8 – 10 years, they will send you a bottle of your own. You can help guide the maturation, pick the distillery and help them keep the doors open. If you want your own bottles more to drink and enjoy, this is a great way.

Crystal Skull Vodka

As you can see, if you had 200 friends who all wanted a bottle of scotch whiskey in your own bottles, with your own label and would pay £60 for it, you’d net a nice boost of £6,000. If you happen to be a movie star and actor or have a lot of social media followers, this may work. Yet with all investments, you need to ask, how does it compare. If you had invested $4,000 in TELSA at the IPO, those shares would now be worth $248,642.92.

If you love whiskey and want to invest, join a club and get your own bottles. Otherwise, we’d recommend trying to find the next big thing. If you need to get a loan against something exotic, Suttons and Robertsons provide loans against fine wine, whiskey, rum.