Investing In Whiskey? 6 Important Things You Need To Know About
Ever wondered why only the affluent in society get to order a glass of whisky at a bar and after that, they leave with a whole bottle in a cab? Nothing alcoholic is as sweet as a half glass of whisky after a long day of work. This has got nothing to do with promoting alcoholism or anything, but let's face it, everyone has their own ways of decompressing. As they say, this helps to ensure that you face another day free of yesterday's sorrows. In his words, Mark Twain said that “too much of anything is bad, but too much good whiskey is barely enough.” If you did not know that, well, now you know.
In the first place, why invest in Whiskey?
You are wondering why you should invest in your favorite drink instead of spending the extra dime on a worthwhile course, right? This is what ills society today. Just because you are having a good time with your glass of favorite whisky, someone will sell you out saying that you are a drunkard. Well, here are the reasons why most people invest in whiskey:
- It's a high return on investment, especially when you are in the liquor business
- The filthy rich are doing it, so why shouldn’t you?
- Various indices and reports show it’s worth it
- The reasons outweigh the risks
- You don’t have to pay VAT unlike other assets like cars
But before we get into the nitty-gritty, and before you get convinced otherwise, below are six important things you need to know about investing in whiskey.
1. It’s Always 5 O’clock Somewhere
Someone somewhere is having their happy hour and if you are not, well, you might as well start early! If you are looking to exclusively enjoy some of the finest produced and distilled Whiskey, then you better think of joining the club. As an investor, collector, or connoisseur, becoming a member of a Whisky Club will ensure that you enjoy a good time and specific perks. The thing with most whisky clubs is that you'll get to sample some of the best whiskies, share memorable moments with friends, and get to experience these clubs provide. Delights such perks include:
- Direct access to the best and limited whiskies
- Regular high-quality Whiskey deliveries to your doorstep
- Unlimited purchasing freedom
- Easy to join and flexible membership
- Discounted prices of various Whiskeys at selected venues
- Unlimited access, info, and front row seats to a host of high-end events such as auctions, collection galas, and parties where all the investments happen.
2. Patience Pays
Patience is a virtue that many don’t have the luxury of possessing but it’s one that you should start exercising before you start investing in the Whiskey business. The best and most expensive Whiskey is the one that’s been bottled at cask strength, aged, matured, and presented at a vintage collection. By aging, it doesn't mean 1 or 2 years. With whiskey, it could mean anywhere between 10 or more years! Storing your Whiskey away and auctioning it twenty years later as a limited and special edition will give you a return of investment worthy of the filthy rich’s dreams.
3. The Ancestors Do Take Their Share
Investing in Whiskey means that you collect and store many bottles simultaneously. This translates to you investing in a proper storage facility away from the elements, especially direct sunlight and heat and humidity. Sunlight and heat could cause the Whiskey to evaporate through the loose corks – the angel’s share – which can lead to a drop in the alcohol volume. If this happens, you can forget selling the drink as Whiskey!
Additionally, humidity can damage the bottle labels, reducing the bottle’s value. Lastly, always ensure to keep the bottles upright, and once in a while, tighten the screw caps.
4. Old Is Gold
Unlike other assets, Whiskey gains economic value as it ages and matures. Imagine a bottle of Whiskey selling more than your classic car! That’s hard to believe, right? Well, believe it, as a rare 60-year-old single malt Macallan Whiskey was sold for - drum roll please - a whopping £1.5 million at an auction in 2016! Now that is a fantastic investment opportunity and profits for that collector.
5. Take Time To Research
Before undertaking any financial activity, it’s advisable to have a viable plan which can only be compiled after undertaking extensive research. You never want to go into any financial undertaking blindly. Here are considerations to take into account when it comes to investing in whiskey:
- The current market trends
- Whiskey types and distillers
- The best whiskey auctions, whether internationally or locally
- Finding the rarest whiskey collections
Additionally, take time to learn Whiskey lingo and the terms used. You don’t want to appear the odd one out at an auction simply because you don’t understand the language.
6. Watch Out For Fakes And Flippers
This industry hasn’t been spared from hoarders and counterfeit Whiskeys, all in the name of making profits and dominating the market. Flippers hoard certain Whiskey brands, wait for everyone else to run out, after which they sell the hoarded products at exorbitant prices even if they aren’t as mature as the vintage collections. These vices are rampant and as a newbie, you can easily fall prey. To avoid these, make sure you get your Whiskey through credible sources in trusted auctions, distillers, and other renowned collectors.
Your favorite Westward’s Oregon Pinot Noir cask can fetch you some good bucks in the future. The above tips will equip you with insights regarding this industry, but make sure you carry out extensive research. Cheers!