As an alternative investment, whiskey has become increasingly popular in recent years. With the right knowledge and strategy, investing in whiskey can generate considerable profits. When deciding which whiskeys to invest in, key factors to consider include age, rarity, brand reputation and projected future demand. This article will provide an overview of the whiskey investment landscape and offer guidance on identifying profitable whiskey investment opportunities.
Focus on well-aged Scotch and Japanese whiskeys for long-term value growth
Scotch and Japanese whiskies over 18 years of age tend to be the most lucrative for investors. Older bottles from renowned distilleries like Macallan, Bowmore, Yamazaki and Hibiki constantly achieve high returns at auction. As they become rarer over time, their value also grows exponentially. Try to find limited edition, aged releases from these iconic brands. Avoid trendy but young ‘craft’ whiskey bottles.
Iconic discontinued brands can offer huge returns on the secondary market
When a storied whiskey brand announces plans to permanently halt production, demand instantly spikes among collectors. This sends secondary market prices soaring to many multiples above original retail value. For example, following news of its closure in 2020, Japan’s Hakushu distillery saw bottles reselling for over $15,000 at auctions. Investing in whiskey before it is discontinued can result in massive price appreciation.
Controversial brands like A.H. Hirsch can be high-risk, high-reward gambles
A.H. Hirsch Reserve bourbon is one of the most legendary American whiskeys, with some bottles fetching over $100,000 at auction. However, there are ongoing debates about the provenance and authenticity of certain batches. This makes Hirsch a potentially lucrative but also very speculative bet. Controversial brands can have incredible upside but require thorough due diligence.
Rare cask finishes command huge premiums among collectors
Whiskeys finished in unique, atypical casks are coveted for their novelty and scarcity. Examples include The Macallan’s Sherry Oak casks from Spain, Bowmore’s wine barrique casks from Italy, and Ichiro’s Malt whisky aged in Japanese plum wine casks. Limited edition bottlings with special cask finishes tend to appreciate rapidly in value and can produce massive returns.
Focus on well-aged Scotch and Japanese whiskey, discontinued distilleries and rare cask finishes for potentially lucrative investments. Conduct thorough due diligence and authenticate bottles. Be wary of unproven or overhyped brands.