How to Invest in Whisky?
The Elite Whisky Process
At Elite Wine & Whisky we offer a step-by-step guide on how to invest in Whisky. Firstly, we have a wide range of choices of casks one can choose from. This is key for investment, as it is important to select from well known distilleries, but also ones which are selected for some of the largest whisky blend brands in the world, such as ‘Johnnie Walker’ and Grants’.
Secondly for single malts, the quantity of the whisky that is produced is key. The more limited the initial quantity, the quicker the whisky will increase in value as bottles are consumed around the world and its supply becomes more limited.
Why Invest With Us?
As rare whisky is defined as an asset class its primary objective is to safeguard investors capital in the event of market downturns.
After a consultation with our qualified traders, a bespoke portfolio is designed. We then provide the acquisition, maintenance and exit strategy.
Rare Whisky has outperformed every other major financial index over the past two decades. Historically it has shown low correlation to mainstream assets, making it a useful portfolio diversifier.
With increasing demand from China and other BRIC nations, the growth rate of global consumption is set to increase over 6% by 2020.
Frequently Asked Questions
The HMRC manages all companies dealing in whisky brokering, with help from the Scottish Whisky Association and must hold appropriate licences with HMRC, by undergoing a thorough application process to gain a licence called a WOWGR. This process requires many checks with HMRC, background information, business plans and applications to trade with reputable brokers.
All of our stock purchased through us that is kept in a bonded warehouse is insured after paying a small fee, depending on the size of stock which covers fire, theft and water damage that the warehouse will pay for the prize of the current market value. All casks are stored at our bonded warehouse in Scotland and rare bottlings will be in our EHD bonded warehouse which has the same insurance policy.
After confirmation of purchase, you will receive a Title Deed Certificate outlining which casks you own. These casks have all been registered with the bonded warehouse and the original distillery that gives you authenticity of the cask, and allows you to sell your cask through other channels if you wish.
The value of premium whisky is largely determined by age, as well as the quality of the distillery and brands they release. Considered to be the most valuable are Single Malt whisky’s which occupy the higher end of the spectrum,compared to the blends. While this is true, all blends are a mix of younger and older single malts to gain the flavors that they wish to acquire, so this means investment in casks gives you a greater scope to sell your product for either single malts, or blends. While all whisky increases in value over time, some increase more than others.
Once the cask has been transferred into your ownership, you are able to sell at any time of your choosing. For casks, we recommend a minimum of three years in order to get great returns, but the investment can be held for as long as you wish. The returns depend largely on the brand and how long you hold the whisky. We advise our clients that a typical return per annum ranges from 12% to 15%.