When investing in whisky barrels beats investing in gold

6.07.2021

Investing in whisky barrels is becoming one of the best options in times of uncertainty.

According to the results of the BC20 Whisky Cask Index published in the British newspaper The Times, some barrels would have increased in value. The whisky barrels acquired in July 2018 with a value of 100 000 $ would be worth today in June 2020 about 160 000 $. Other conclusions of the study state that investing in digital currencies such as Bitcoin, in the S&P 500 or even in gold, would not have given the same results.

In the press release “Why Whisky is the Safest Investment to Make During Covid-19“, the general manager of Braeburn Whisky, Samuel Gordon explains the social turbulence. “Social turbulence is often a time when investors take stock of their portfolio. They look at new ways to protect and leverage their savings. With the pandemic this is not much different.” In an article in The Times, Gordon elaborated about the subject. “Investing in whiskey barrels is a strategy that will help investors build and safeguard their wealth, while providing an alternative way to invest.”

Why so much mania for investing in whisky? A few figures

In Scotland alone there are some 22 million barrels of whisky stored with ageing whisky. Barrels have been entering the open market more and more, and collecting barrels has been gaining momentum.

Even the whisky broker and investment firm Rare Whisky 101 offers a service to meet the growing demand of whisky enthusiasts around the world. And in Japan, Nagahama Distillery is offering to sell you a cask which will age for you.

It is necessary however to understand that investing in whisky is not as easy as it seems. There are several factors to take into account. As an example, the evaporation of whisky can be as much as 2% per year. Or leaving your whisky to rest for a long time can result in a very woody whisky.

Don’t drink and drive. Enjoy responsibly.