Investing in Whisky for Beginners
So you’re thinking about investing in whisky? No surprise there.
Whisky has been the undisputed queen of alternative luxury investing, delivering 280% growth between 2013 and 2023 (The Knight Frank Luxury Investment Index).
So yes, the potential is there. The trick, however, is to know how to take advantage of it, which leads us to the main point of this guide - how to invest in whisky. Let’s start from the beginning, shall we?
How to invest in whisky - bottles vs casks
The first you need to know is that you can either invest in whisky bottles or casks. Both these routes come with their sets of potential pros and cons. Let’s see how they compare:
Investing in whisky bottles
This one is self-explanatory. You go hunting for rare whisky bottles (more on how to find them in a minute) and buy them with the hope of selling them for a higher price.
The advantage here is that investing in whisky bottles usually requires low upfront costs compared to many other luxury investments. Selling whisky bottles is also relatively easy, with numerous online forums and marketplaces for whisky connoisseurs.
Additionally, whisky bottles are easy to store and have a more flexible investment timeline.
In general, investing in bottles is the best option for short-term gains and straightforward management, making it a perfect choice for beginner whisky investors.
Investing in whisky casks
Buying whisky bottles is definitely a great way to start with whisky investments. However, if you’re interested in a longer-term investment timeline and have some extra capital to spare, investing in whisky casks can be a way to go.
In this scenario, you contact a distillery that sells whisky by cask, buy it, and wait for the whisky to mature and appreciate in value over the years.
The long-term potential of investing in whisky casks is immense, but it requires a much higher initial capital than buying whisky by bottle.
You also have to ensure the cask is stored properly. The good news here is that many distilleries offer storage options. The bad is that it usually comes with hefty fees that might eat into your investment.
The art of finding the right bottle (or cask)
Finding the perfect whisky bottle or cask for investment is an art form based on understanding the subtle yet significant factors that drive value in the whisky market.
Start by looking at distilleries with a proven track record of appreciation. Some distilleries have a heritage that makes them more collectable, while others gain traction due to limited releases or innovative production methods. Limited edition bottlings, discontinued lines, and special cask finishes (such as sherry or port casks) are often indicators of future value.
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🥃The value of finding the right bottle The most expensive whisky bottle ever sold at auction is The Macallan Fine & Rare 1926 60-Year-Old, which fetched $2.7 million at Sotheby’s in London in November 2023. This rare whisky came from a legendary cask, No. 263, which produced only 40 bottles. |
Next, timing is key. Investing in whisky is about predicting which bottles or casks will become rarer over time, either due to the distillery’s limited production or shifts in market trends. Pay attention to the bottling year and unique features that set a particular release apart - these often become the factors that collectors seek out years down the line.
Finally, and most importantly, trust your intuition. Successful whisky investors not only do their homework but also cultivate a nose for bottles or casks that speak to them.
The right choice today could very well turn into a prized possession or a highly lucrative one in the years to come. And if your nose for whisky doesn’t work, be sure to work with someone with talent to find the right bottles.
Splint Invest: An easier way to invest in whisky for beginners
We won’t beat around the bush. As lucrative and exciting as investing in whisky can be, it’s not always a walk in the park. It requires skill, time and resources - treats and features not all beginner investors have.
Well, what if we told you there’s an easier way to invest in whisky? One that doesn’t require spending time and resources on finding the right bottles and casks or storing your assets?
That’s precisely what Splint Invest offers.
We provide investors with easy access to alternative investment funds, including premium whisky, allowing you to invest in luxury assets for as little as €50.
Discover how investing in whisky with Splint Invest works, set up your account, and invest pre-vetted whisky investment funds that give you a better chance for great returns.
References
Art leads 2023 Luxury Investment Index
