You may be wondering why diversification is necessary for whisky investments. After all, Scotch whisky is a famously safe investment. It’s been a safe haven for investors throughout the pandemic so far while other markets and assets have seen their values taken on a rollercoaster of highs and lows.
It’s certainly true that there are far fewer risks associated with whisky investment than many of the more volatile markets, but you shouldn’t just see diversification as a way of protecting yourself from disaster.
When it comes to whisky casks, diversifying means spreading the rewards, rather than the risks. The Scotch whisky market is a diverse one with historic brands, new distilleries and a wide range of flavours and traditions, so why wouldn’t you want to build a collection of casks from across the country?
Having a diverse portfolio of brands also means that you have a good chance of one of them becoming the flavor of the month at some point. Right now, that’s certainly Macallan, but a decade from now, there could be another distillery’s whiskies getting top value in auctions. Having casks from more than one distillery increases your chances of being in the right place at the right time.
Another benefit of diversification is down to timing. Patience is a virtue with whisky investments while you wait for them to mature and gain value, but if you have a spread of older and younger casks, you will be able to cash out more at various times, with some coming along more quickly and others banked for a later date.