With the increasing popularity of whisky as an alternative investment, many investors are looking at entering the whisky investment market. However, not all whiskies make good investments. When choosing the best whisky to invest in, there are several factors to consider. Firstly, investing in rare and limited edition whiskies from renowned distilleries generally provides the best returns. Secondly, whiskies that are highly rated and have won awards tend to increase in value over time. Thirdly, older aged whiskies, especially those over 25 years, are more desirable. Lastly, investing in unopened bottles in pristine condition preserves value. By considering these factors, investors can better identify whiskies that will potentially appreciate in value and provide good long-term returns.
Limited edition and rare whiskies from top distilleries appreciate greatly in value
One of the best ways to choose whisky for investment is to look for limited edition and rare bottles from renowned distilleries like Macallan, Bowmore, Lagavulin and others. These are produced in small batches and have restricted availability. As supply is scarce, demand from whisky collectors and investors drives up prices over time. For instance, a 60 year old Macallan 1926 sold at auction for $1.5 million in 2019. Rare whiskies like Bowmore’s legendary Black Bowmore also regularly fetch over $10,000 a bottle. Limited releases often sell out within days. Getting hold of these early and keeping them unopened means huge gains down the road.
Highly rated whiskies by critics are lower risk and appreciate faster
Whisky experts like Jim Murray release annual lists rating the world’s best whiskies. Bottlings awarded high scores, especially 97 points and above, end up gaining cult status quickly amongst whisky aficionados. As critics and connoisseurs drive up demand, prices for critically acclaimed whiskies can increase exponentially within a short span. For instance, William Larue Weller whisky was trading around $200 in 2020 but shot up to over $2000 by 2022 after receiving 99 points from Murray. Whisky ratings guides are a good reference point for beginner investors to identify quality whiskies that will likely gain value over time.
Older whiskies with long age statements are a safer bet for returns
As a general rule, the longer a whisky has been aged, the higher its market value. Whiskies aged over 25 years command premium pricing and tend to be more stable investments. Older whiskies have deeper, more complex flavors which appeals to collectors and investors. Long aged Scotch and Japanese whiskies regularly fetch 5 to 6 digit prices at auction. For instance, 50 year old Yamazaki whisky from Japan can sell for over $100,000. While very old whiskies can be out of reach for many, targeting whiskies around 18 to 25 years offers the best balance of potential upside and lower downside risk.
Investing in unopened bottles in pristine condition preserves value
To maximize returns on investment, it is essential to invest in bottles that are unopened and in perfect condition. Once opened and with liquor removed, value deteriorates rapidly. Small dings, unclear labels or damaged caps can also reduce collector appeal. While buying new release whiskies involves more upfront cost, their pristine state means room for higher appreciation. Websites like WhiskyInvestDirect enable buying and selling of sealed, graded whiskies. Overall, focusing on quality over quantity when building a whisky investment portfolio reduces risk and amplifies upside.
By targeting rare, highly rated, long aged whiskies in unopened condition from reputable brands and distilleries, investors can build a portfolio poised for strong long term gains. Whisky investment requires research and capital, but the category offers portfolio diversification and high returns.