As whisky brokers, we buy and sell whisky casks every day of the week, here at Spiritfilled. But, whisky investment is a very new idea to many people. And, understandably, people have a lot of questions. So we thought it might be helpful to answer four questions we're often asked about whisky investment. This isn't personal financial advice, and you should always reflect carefully on your own situation. But, we hope the article is helpful nonetheless!
Can I invest in whisky?
In one word, yes. In a few more words, yes investing in whisky is both possible, and in fact easier than you may think. There are three main approaches to whisky investment.
First and most common, is investing in bottles. The bottles that make the best whisky investment tend to be limited edition premium releases from popular distilleries. Macallan is an example.
The second approach is buying whisky casks. This is where you buy a whole barrel of whisky while it is still aging. You'd typically keep the whisky cask for a period of a few years, during which it will continue to mature.
The third approach to whisky investment is buying shares in a whisky company. There are major drinks brands listed on the stock exchange, for example Diageo. But there are other approaches, for example some of the smaller distilleries have done crowdfunding rounds.
Can you make money investing in whisky?
Yes, it is possible to make money investing in whisky. The key here is that you need to invest in the right way. And you need to understand the downsides and risks, as well as the potential reward.
At Spiritfilled, we help our clients invest in whisky casks. Because the whisky is still ageing in the barrel, the whisky improves over time. This helps generate a return. Over the past 10 years whisky casks have generated an average return of 8 to 9% per annum, after storage fees. While the past isn't a guarantee of the future, this is an encouraging track record.
Is whisky investment safe?
All investments have some risk associated with them. It's this risk that helps justify rewards for investors. The notion of 'risk and reward' is commonly associated with the stock market, but is true in general.
Here are the five things we say to people considering whisky cask investment. Five tips to keep your investment as safe as possible.
- Whisky investment should be just one part of your overall portfolio
- You should only invest money that you can keep locked away in a cask for at least five years
- Research the market thoroughly, and make sure you're getting fair market values from a cask broker you trust
- Make sure that the cask is under your name, and that you own it. Not the cask broker.
- Make sure you have insurance on your cask, just in case something happens to it.
How much does whisky investment cost?
It depends. It's a broad range. A limited edition bottle of whisky may be a couple of hundred pounds. A rare Macallan might be six or even seven figures. And however much you put into whisky investments, make sure it's right for you - and part of a broader portfolio.
The whisky casks we sell at Spiritfilled start from around £1,000. An average market cask might be around £8,000. And, of course, whisky casks can go up to five figures and beyond. But we help our clients find the casks they're looking for and secure them for the best possible price.
Learn more with our whisky investment guide
If you would like to explore whisky investment further, then we've written a free guide all about the subject. You can download our Whisky Investment Guide here.
If you'd like to talk about whisky casks, we'd be pleased to help. You can speak with one of our whisky cask experts by contacting us here today.
Very good product, I enjoy it
Very good product, I enjoy it