Whisky Galore – a great long-term investment

Most of the investments that we promote are a little dry and dusty – here is one to both whet your financial appetite and wet your whistle!

The majority of our favourite investments are either fixed term/fixed return or more speculative investments where higher risk means potentially higher reward. Investment into rare and old whisky is a longer term play that has continuously delivered double digit annual returns for the more patient investor. After a lot of research over the last three years I have myself invested in rare whisky and I am now the proud owner of my own cask of single malt Scottish whisky that is stored in a bonded warehouse in Scotland. It is fully insured and I can visit it and taste it whenever I want but my cask will probably be at its most valuable and drinkable sometime around 2040. By which time I expect that it will be worth around  TEN times what I paid for it.

In uncertain times a whisky cask gives investors the opportunity to benefit from an investment into an industry that has performed exceptionally well over the past decades and that is non-correlated to financial markets. The Scotch Whisky industry is rich in heritage, GI protected and renowned across the globe. Our partnerships allow our investors to purchase casks of rare whisky and have them stored in the best conditions for maturation whilst being monitored by experts to help them achieve their full potential in terms of both taste and profitability. Once they reach the ideal age for enjoyment and/or sale we help you to sell or bottle your cask. Imagine…….your own rare whisky label: the “Jon Pedley 18 year old Aultmore Single Malt”!!!

The entry point is also fairly low. Casks of younger whisky (1-2 years) can be acquired for as little as £3200; a popular maturing whisky (7-10 years) for between £7000 and £12000; and should you particularly want a 30 year old whisky cask then as long as you have between £300k and £700k then we can help!! A Macallan cask purchased for £5000 in 1986 sold earlier this year for more than £900,000! This investment is also exempt from capital gains tax.

Proposition: We help you select a cask according to budget and timeline, acquire the cask, and provide annual updates on both your purchase and the industry. This is a longer term investment where you can expect to make double digit returns (10-13% per annum) on an investment of between ten and eighteen years

In the past I have seen clients buy casks of whisky or barrels of fine wine for newborn babies and younger children with the intention of giving their offspring the purchase when they turn 18 or 21 years of age. Others particularly like the idea of guaranteeing that they will have something exceptional to drink in their retirement – or to sell after they are no longer receiving an income.

A fun investment into a physical asset where returns and value are unaffected by the world economy. What´s not to like?