With the world still reeling from the effects of the COVID-19 and the potential for further waves, investing may be the furthest thing from many people’s minds. Indeed, when Warren Buffet is skittish, a man known for buying up big during economic downturns, it is certainly cause for consideration.
Yet as we know the world keeps turning and now more than ever it is important to make sure that your money is working for you in the best way possible. To this end Single Malt whisky is perhaps exactly what you’ve been looking for. The fact that whisky is an easily stored, physical asset that can be sold remotely means that it can potentially act as a hedge for traditional markets like shares, property and oil.
From a numbers perspective the most recent annual report compiled by Rare Whisky 101 identifies that the Apex 1000 index, which tracks the value of the collection of one thousand of the most sought after bottles of Single malt Scotch, has increased in value by an average of 23.46% per year from December 2014 to December 2019*. This is in comparison to the ASX which has seen average annual growth of 5.59% over the same period.
So what to buy?
Like anything else, the basic law of supply and demand are very much the key factors to keep in mind when deciding on what to purchase. Therefore limited release aged whiskies from well known distilleries present the safest option. Should that whisky come from what is known as a ‘ghost’ distillery (one that no longer produces whisky) then your odds of a return are even greater due to the finite level of supply.
With this in mind, The Whisky Mill recommend looking at the following whiskies as potential options for investment purposes.
Each of these featured in the top 25 brands being sought out by connoisseurs, collectors and investors as identified by rare Whisky 101.
For those who wish to be even a little bolder, The Cally 40 year old Single Grain Whisky represents an opportunity to take advantage of a category on the move. Conversely if one wanted to play a little safer and avoid too hefty of an outlay then the Special Releases are always an attractive proposition due to their appeal to collectors.
At the end of the day all investment comes with inherent and unavoidable risk so its important to consider all available research and cross reference before making any purchases**. One upside is the fact that unlike oil, property or shares in the worst case scenario whisky would be one delicious white elephant.