The most obvious reason for any commodity to rise in value is when demand outstrips supply. As The Times article rightly mentions, Scotch Whisky has seen a surge in demand since the late nineties, with interest in old bottles and single casks reaching a “fever pitch”. Due to the time taken to mature Scotch Whisky into the fine and prestigious product that it’s renowned for, the slow supply has helped elevate the price of Scotch Whisky at a compound rate of 20% according to the Bordeaux Index, the world’s largest fine wine trader.
“As the Bordeaux Index highlights, the superb performance of Scotch Whisky has weathered some of the most challenging crises in modern times. With an equivalent gross increase of 400%, it’s not hard to see how savvy investors and collectors can make superb returns on their bottles and casks. Here at Whisky Partners, we saw an increase in first-time customers of 33.6% in 2022 alone, as more people turned to Whisky Casks for reliable performance amidst these turbulent financial times” – Alistair Moncrieff, Whisky Partners
With record-breaking sales making the headlines every few months, the interest in Scotch Whisky as an alternative investment has soared as more people look for a safe haven for their wealth. As the article mentions, the value of rare Scotch Whisky in the secondary market jumped by 21% in the first nine months of last year, with no sign of slowing down.
Cited as the best-performing asset class of the last decade by the KFL investment index, Rare Whisky’s value increased an incredible 428% between 2011 and 2021. This outstanding return has led to record-breaking sales within the market, with Ardbeg recently selling a single Whisky Cask for an eyewatering £16m just last summer.
Unlike bottles, Casks of Whisky continue to mature the spirit inside. Due to the slow natural evaporation of alcohol from the cask during this maturation period, Casks also benefit from being exempt from Capital Gains Tax. A huge win for investors looking to maximise their returns.
Although Scotch Whisky continues to make the headlines thanks to its stellar performances as an investment, the process of buying and selling casks has remained an elusive industry to most. Traditionally reserved for those in the know, sadly not everybody has been able to take advantage of the spirits performance with casks, in particular, difficult to source, purchase, and manage.
Alistair continued: “As the article in The Times quite rightly highlights, Scotch Whisky is an incredible asset that has continued to flourish even amidst some of the most challenging circumstances in modern times. We’re proud to make Cask Whisky ownership as simple as possible, allowing more people than ever before to take advantage of this incredible spirits performance.”
To read the full article featured in The Times, click here. To learn more about owning a Cask of Whisky and the benefits it can offer, please click here to download your free guide. Alternatively, you can browse our current stock by signing up to our online portal or by downloading the brand new Whisky Partners app to your mobile device.