Whisky lovers are always on the lookout for the best investment to make in their favourite tipple. When you’re looking to invest in whisky, you have two main options: buying whisky casks or bottles. Both have their pros and cons, so which option is the best investment? Let’s take a closer look at both options and see what the best decision is for you.
Bottles
When it comes to bottled whisky, the school of thought is to invest in rare and limited editions with the hopes of selling them for a higher price down the road. The most collected bottles across the globe come from the Macallan distillery, the Karuizawa distillery, the Yamazaki distillery and the Dalmore distillery. A common tactic for generating a large profit margin is buying bottles from the US and selling them off to an investor from Asia. When looking at short-term profits, bottle investments are superior.
However, there are a few factors to consider before making any type of whisky purchase, such as storage conditions, shipping and overall market trends. Bottles hold a significant value and it is important to protect them from any damage. Shipping can be very dangerous, as well as costly for high-priced bottles that may not have insurance coverage on their own due to the exorbitant cost of both shipping fees and customs duties when entering into another country's borders with goods valued at more than $200 USD per package/bottle (or its equivalent). Beyond this risk there are also potential storage issues depending upon how many collections an individual has; large spaces may need rent or purchase which can be rather pricey. As these bottles will no longer age, their value is subject to change based on the popularity of the brand, which can make it an unpredictable investment.
Casks
When it comes to cask whisky, one of the biggest advantages of investing is that it appreciates in value over time. Like other collectables, the price of rare and limited edition cask whisky can go up, giving you the potential to make a profit on your investment. Although investing in cask whisky is a less-known form of whisky investment, companies such as Heritage Casks are allowing anybody to purchase rare and exclusive whiskies from distilleries all over the globe.
One of the best things about cask whisky investment is that it doesn't require any personal storage space or shipping. The whisky stays right where it's stored, in bonded warehouses and maintained by warehouse professionals. There is also a requirement, that casks be stored in government-bonded facilities, thus providing investors with complete confidence that the cask they are purchasing is 100% authentic. This means, you may be able to find counterfeit bottles, but that will not be the same for casks. As these casks may not be linked to any one brand, in particular, this means that while a brand's popularity may fluctuate, the liquid in each cask will only continue to appreciate in value.
Conclusion
Ultimately, casks will likely provide a higher return on investment than bottles because they require less risk and do not fluctuate as much with market conditions like popularity or prices upon sale (due to lack thereof). Another thing to consider is the long-term storage requirements. For casks, you have a greater incentive to invest over time as it’s securely stored and managed by professionals, whereas, you are personally responsible for storing bottled whisky. When all is said and done, cask whisky is vastly superior when it comes to long-term and secure investment, whereas bottled whisky investments may provide a short-term flow of profit, but the value is subject to the perceptions of the brand they have purchased, thus making it a less secure route of investment in the whisky industry.
