How to Invest in Whisky Casks
Buying and holding whisky casks can be an exciting investment opportunity. It's a tangible asset that lots of people can relate to. And, because whisky gets more valuable the longer it ages in a cask, the returns can be attractive.
Six simple steps to investing in whisky casks
Investing in whisky casks isn't quite as straightforward as putting money into an ISA. And, there are a few key things you need to get right. But, that doesn't mean it needs to be difficult. Here's how to invest in whisky casks, in six simple steps.
Step 1: Reflect before you buy
As with any investment, reflect before you buy. How much money do you want to put in? Can you afford to keep that money in the assets for the medium to long term? What return are you looking for? These are basic but important reflections that set you up for sustainable success. As with any investment, value can go down as well as up over time.
Step 2: Find a reputable broker
The easiest way to buy whisky casks is through a cask broker. But do your due diligence. Do they have an established trading history? Do they hold the correct HMRC licence to trade in this regulated commodity? Are customer reviews positive? It's vital to pick a trustworthy broker.
Step 3: Choose your casks
Like fine wine, the choices on casks are endless. There are different distilleries, with different brands. Choices of spirit types, like unpeated and peated. Different sizes of casks, from very small to very large. Various cask finishes and styles. And last but by no means least, differing ages. These factors influence how much the cask costs today, and how much it could be worth in the future.
Step 4: Buy the cask
After you've chosen your cask, or casks if you're looking for a few, then comes the purchase. You agree a price, and the paperwork is drawn up. The key bit here is to ensure you own the cask. You, yourself. As opposed to a company owning them on your behalf. This important distinction protects your rights, and your assets. Read more about bailment here.
Step 5: Store your whisky cask
Storing your whisky cask allows the whisky to age, and appreciate in value. You need to store your casks in a bonded warehouse, regulated by HMRC. You should consider insurance for this period, so that you have extra protection. Part of this process is patience, as time works its magic. But there are more involved choices you can make. As your whisky ages, you may want to re-rack your cask into a different style of cask, for example a port cask. Known as finishing, this process layers extra flavours onto the whisky. The better the flavour, the more appealing the cask - and the greater its potential value.
Step 6: Sell your whisky cask
The day will come when you're ready to sell your cask. You chose well. You've looked after it. It has matured over time in the warehouse. And now it's ready for the next chapter. There are several different exit strategies, from selling through to bottling yourself. Find out more about how to sell a whisky cask here.
Are you interested in investing in whisky casks?
We hope this blog has helped you understand how to invest in whisky casks. This is what we do, here at Spiritfilled. We're experts in whisky casks, from buying through to bottling.
- We're licensed by HMRC to trade whisky casks, and our customers rate us as 'excellent' with 4.8 / 5 stars on Trustpilot.
- We have a wide range of casks available, and can use our industry network to source an even broader range.
- Our customers own their own casks. Bailment is important to us.
- Our casks age in a bonded warehouse, with free storage and insurance for your first year with us. We provide re-racking service, and can help you finish your whisky to a high standard.
- When you're ready, we're well placed to sell your cask. Whether to other customers, or into the industry. And if you want to bottle your cask yourself, we can help you with this too.
If you're interested in investing in whisky casks, we'd be pleased to help. You can download our Guide To Investing In Whisky Casks here for further information. Or, contact us today and we can discuss your needs in detail.