Investing in whisky: 500% increase in price

27.08.2019

Reasons continue to be added for investing in the whisky business in which prices of rare bottles have risen up to 500 per cent.

Whisky bottles are constantly on display at auctions: Bonham’s, Christies, Sotheby’s… and stop counting. Japanese whisky, unpublished Scots, are the main and most sought after in this business. From last year to July alone, rare bottles increased in value by 5%. Over the last decade, however, they have not doubled, nor tripled, but increased their price by 500 percent.

“We are seeing an increase in the number of valuable bottles that are sold for a greater value than ever before. This is also where we begin to see that high-end bottles outperform the rest of the market. The analysis of Rare Whisky 101 explains.

An example of these increases is illustrated by Rare Whisky 101.

Balvenie Tun 1401 bottle: launched in 2010 at a price of £150. Today it is worth £4400. Increase of 2.833%.
Macallan Royal Marriage: released in 2011 at a price of £150. Today it is worth £3000. Increase of 1.900%.
Lagavulin 30-year-old: launched in 2006 at a price of £210. Today it is worth £2650. Increase of 1.162%.
Bowmore Devil Casks: launched in 2013 at a price of £50. Today it is worth £270. Increase of 440%.
Brora Single Cast 1972: launched in 2014 at a price of £6995, today valued at £19,000. Increase of 172%.

Some things to know before investing

It is very important to be aware of some factors that, however promising the investment may seem, can guide you:

Before investing, it is important to consider that the return on the investment is not immediate. It is not guaranteed either.
Operating costs are high – auctioneers demand up to 30% of the hammer price.
Commercial costs are high, as auctioneers demand up to 30% of the price of a bottle hammer as a commission.
Participating in events is also a way of discovering trends and exchanging with negotiators. The Whisky Show, for example, is recognised as the UK’s finest whisky. Between 28th and 29th September more than 600 whiskies from all over the world will be on display. Definitely an opportunity to be up to date with new trends as well as the event highlights new brands as well.
Be on the lookout for fake whisky. According to Rare Whisky 101, high-value counterfeits have never been so prolific. This is to be expected, as values remain at historical highs.
Another type of investment is to buy whisky in barrels. A strategy for which it is necessary to be well informed about the desired final result and to have previous experience in investing in bottled whisky.

Don’t drink and drive. Enjoy responsibly.