The average bourbon whiskey cask has appreciated more than 13% each year since 2010.
When people think about great financial choices, not everyone considers investing in whisky. For those who do, however, they know that it can yield excellent long-term results. Before getting ahead of yourself, there are some things you need to know about whiskey investment, and we’ll cover all the basics in this guide.
Keep reading for more.
Why Invest in Whiskey?
People invest in generating profits, and assets that have fared better in the past are generally considered the best choices. Whiskey has experienced stable growth over the last decade, which is expected to continue.
Whiskey has grown in popularity in terms of investing and simply as a drink. The whiskey market is already huge in North America and Europe—and even more so in Asia. The affordability and good returns also make it a popular choice among younger investors.
As the popularity of whiskey has increased, more investing platforms have begun supporting it. This makes it an easy option for both beginners and experienced investors.
Whiskey Investment for Beginners
While many people will start by going for bottles, investing in whiskey barrels—or even whiskey-related stocks and funds—is also possible.
Bottles are often easiest for beginners as they can buy bottles they’re interested in, then hold on to them to eventually make a profit. Before you buy a bottle, you should:
- Ensure it’s genuine
- Check that it’s from a collectible brand
- Look at the batches released and their characteristics
- Consider the market value and potential appreciation
- Make sure you have safe, suitable storage
Cask investments can be more affordable for those who don’t know what bottles to invest in. It’s worth noting, however, that it can also be more risky as it’s down to the distillery to keep the barrels safe.
Opting for stocks means you can invest more traditionally while benefiting from the returns of whiskey. You can invest in companies like Diageo, Remy Cointreau, and Pernod Rocard. The value of your stocks will change based on company performance and market fluctuation.
It can be challenging to decide which option to go with. You can get started and learn more about whiskey investing here.
5 Factors to Consider Before Investing in Whiskey
There’s a cost to invest in whiskey and a degree of risk. Don’t just rush out and start buying bottles that you like the look of. Before you purchase anything, there are five key things you need to do:
- Set a budget
- Look up the prominent brand names
- Find a reliable seller
- Do your research
- Understand that whiskey is a long-term investment
Doing all of these will help ensure you make a safe whiskey investment.
Your Whiskey Investment
Any experienced investor knows that portfolio diversification is critical. Whiskey investments are a great way to increase diversification, and the potential for solid returns is very high. Just ensure you take the time to understand what you’re investing in before making any decisions.
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