Is it worth buying a cask of whisky?
Bottles of 95-year-old Scotch whisky have gone for over £1m at auctions in recent years. But savvy investors don’t mess around with bottles. They buy whisky by the barrel. That’s because Scotch gets better with age.
As a result, aficionados are increasingly enlisting whisky brokers to secure casks that are approaching their bottling dates. The casks are stored in certified warehouses. When it’s ready, a 20-year-old hogshead barrel will yield about 230 bottles. A great perk you can have the whisky bottled and branded with your own label. As Highland Cask Group is offering with world renowned artist Cyril Kongo.
With Asian demand surging there’s a bullish case for buying now. There have been some notable auctions of rare whisky in the last 12 months.
Why now spurred by rising demand from Asian investors, the value of rare whisky has soared 564% in the last decade, and the asset has outperformed not only fine wine but every other luxury asset, according to the Knight Frank 2020 Wealth Report. Knight Frank’s data shows rare whisky soaring despite the volatility in markets in recent years.
Cask prices start at about £5,000 and can run to £700,000 for top-shelf stuff, but many distilleries maintain ultra-exclusive client lists. In February, the estate of the late American businessman and collector Richard Gooding sold a 1926 Macallan for 825,000 pounds ($1.1 million). Highland Cask Group Ltd. have agreements in place with distilleries and suppliers to procure wholesale casks.
So, is it worth buying a cask of whisky? In short, yes. Whisky has increased by 800% over the last 10 years, for example, and most investors see an average yield of 11.7% per annum.
Interested in whisky investment? Download our Whisky Investment Guide here.