It’s no secret that Scotch whisky is a coveted drink. Supposedly, the water used to make it must come from the River Spey, and each distillery has its own production methods and secrets. The popularity of Scotch whisky means that there’s a lot of money to be made in investing in it – but what are the benefits of doing so?
When looking to invest in a commodity, there are many factors to consider. The benefits of investing in casks of Scottish whisky are many.
Why consider adding Scottish Whisky to your portfolio
According to the Whisky Cask Index, created by independent whisky investment analysts, the top 10 distilleries were predicted to achieve annual returns of between 13-20%. This equates to projections for cask investment from these renowned distilleries indicating that an investment is likely to double over the course of five years.
Read on to find out more about the investment potential of casked Scotch whisky, and why you should consider adding this asset class to your portfolio.
- The market for whisky is growing every year, due in part to the increasing popularity for the drink, providing investors with an attractive avenue for growth.
- Whisky offers a portfolio diversification advantage. That is, whisky prices are not as correlated with stock prices as other commodities. So, unlike stocks or other commodities, the price of Scotch whisky is not as volatile. This means that there is less risk involved in investing in it.
- In times of inflation, whisky tends to hold its value better than other investments. Whisky is known as an “inflation hedge.” That is, its price tends to go up when other prices go up (and vice versa).
- The global market for whisky is growing – Especially in countries like China and India, where whisky is seen as a high-class drink.
- It’s a stable investment – Whisky has been around for centuries and shows no signs of slowing down.
- The storage and handling of whisky is lower cost than other commodities.
The different types of whisky casks to consider
While there are many different types of casks that can be used, one of the most popular type used in Scotland is the ex-bourbon cask. These casks are made from American white oak and are often used to age bourbon whiskey. The ex-bourbon casks impart a sweet, vanilla flavour to the whisky.
In addition to ex-bourbon casks, Scottish distillers also use sherry casks, port casks, and Madeira casks to give their whisky a unique flavour profile. By using a variety of casks, Scottish distillers are able to create a unique flavour for each batch of whisky.
Profitable and low-risk investment
As more and more people discover the unique flavour of Scotch whisky, the demand for it will continue to grow. This means that those who invest in it now will be able to sell their investment for a profit down the road.
These are just some of the reasons we believe that cask whisky makes an excellent addition to any investor’s portfolio. Are you ready to take the plunge?
Contact us today to learn more about investing in Scottish whisky.
In the Press
