Do You Want to Invest Your Money on Whisky?
Whenever the market goes shaky, typically all investors like to pour all their capitals into certain “safe havens” type of assets that they will like to hold up during such turbulent times. All these are typically the usual items like gold, reserve currencies, treasury bills, and a few tried and tested asset classes having long track records.
One of the surprise contenders that awaits just in the wings is the whiskey. Whisky can offer you a very lucrative investment opportunity and Spirit Vault Collective can also offer you the required support for that.
Let us share here a few mindboggling figures, as far as making an investment in whisky is concerned.
- Rare whisky has gone up 40% last year, much ahead of coins that were just 12%
- Wine and art have gone up 9%
- Watches have gone up by 5%
- Cars have gone up just by 2%
- Furniture has gone up by 1%
- Jewelry had negative growth and had -5%.
There are 3 different options available for investing in this liquor and we will briefly discuss various opportunities and risks involved.
Table of Contents
1. Investing in bottles of valuable whiskey
- You can store these bottles for many years and as their value rises you can sell them for a profit.
- Investors can look for those bottles, which are extremely rare.
- Prefer to go for a high-quality brand that can have more demand
- If you bought a vintage Macallan of 18-year old in the year 2015 at around $25,000. By 2016, it will be worth $61,000 a bottle increase of 142% its price.
- Not knowing in full detail about whiskey may be counterproductive too.
- Difficult to source good products at affordable price
- Storing can be an issue
2. Investing in whiskey maturation
- Based upon the quality of whiskey, you will get a profit
- You can buy as per the current prices offered.
- Investors have got the option to selling to any distillery too
- The net return after considering trading as well as storage cost will be more than 50% within 4-years.
- Theft and loss
- Vulnerable to various market forces
- Company collapse
- You may choose a bad whiskey that may not appreciate.
3. Investing in a distillery company
This can be fairly straightforward as few companies are also listed on the various Stock Exchanges of London like:
- Diego PLC the owner of Johnnie Walker
- White horse
- J&B, Bell’s
- Black & White
- Old Parr
- Vat 69.
Also, an exchange-traded fund is available that is dedicated to selling and buying of companies that are owning distilleries. A few fund purchase companies like Pernod Ricard, Diego, and Brown-Forman that owns Jack Daniels are available where the fund is usually diversified that are owning several distilleries to reduce your risk.
- The company may become insolvent
- Any stock market crash can erode your money value too.
So, you may consider any of the above options based on your interest and risk-taking ability.