MoneyMagpie

Nov 23

Make money investing in whisky

The value of whisky has gone up 400% in the last four years.  Compare this with gold, the value of which rose 146% in the same period, and it’s easy to see the attraction of investment-grade Scotch (IGS).

Experts say the value of the whisky auction market will increase four-fold over the next eight years, so if you’re a whisky fan, now is the time to invest.

 

The basics of investing in whisky

The most popular investment tends to be cask-aged whisky, which means it was stored in a barrel for 10-60 years before being bottled.

You need to store whisky at a constant temperature away from direct sunlight and heat.  To prevent the cork from shrinking, you should wet it occasionally.

How much can I make investing in whisky?

Single bottles regularly go for £100s but if you become a serious collector there are thousands to be made.

Whisky used to be a small part of a wine auction – now it’s so popular there are regular dedicated whisky auctions across Britain.

Four whisky auctions a year are held at Bonhams  in Edinburgh and there are also auctions at McTear’s in Glasgow. In North Yorkshire, Hartleys and Tennants have regular wine and whiskey auctions. When you buy, though, remember that you will have auction fees and VAT to pay so you may find you can get better value on eBay, if you know how to avoid the fakes.

Whisky Online and RareWhiskySite are among a number of sites looking to buy old and rare whiskies so make sure you take a look at those. Specialist auctions like those mentioned above will attract serious investors.

Case study: Mark Whitehurst

Mark has been collecting whisky for seven years and has a “small collection” of around 100 bottles. Although he does enjoy drinking the occasional bottle, he also likes to sell. Any money he makes from his sales is invested in order to buy more whisky.Make money investing in whisky

“If you open a bottle it becomes worthless,” says Mark, so you’ll need to have self-control and not give into temptation! If you’re looking to start your own collection, he says you should go for the likes of Ardbeg, Macallan, Brora and Laphroaig and keep your eye on popular forums like Whisky Magazine, WhiskyWhiskyWhisky and Whisky for news and advice.

Mark has three key tips for you: “Firstly, enjoy your whisky. Secondly, research various whisky sites and forums. Thirdly, look at whisky from demolished distilleries; the casks will run out quicker and the price will only go upwards.”

Mark strongly advises you buy limited edition whiskies and those produced for special occasions like the Queen’s Diamond Jubilee. These shoot up in value within a matter of months. In April 2011 Mark bought three bottles of a limited edition Macallan Royal Wedding Whisky for £150 each. Just three months later he sold one for £500 on a whisky auction site. Bought now, just one year later, it’ll set you back £700.

Useful links

  • Bonhams
  • McTear’s
  • Hartleys
  • Whisky Online
  • RareWhiskySite
  • eBay

WHAT DO YOU THINK?

2 thoughts on Make money investing in whisky

  1. Definitely agree with whisky as the way forward. Check out the Scotch Malt Whisky Investment & Enjoyment guide by Michael Ross on Kindle

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