People worldwide will indulge in a glass or two after a hard day at the office. With their feet up, watching the football or the latest episode of whatever is in vogue at the time.
It’s 2022. The art of whiskey isn’t just for matured men. Nowadays, this spirit of high-quality to note is becoming an eye-turner in the investment market for everyone.
Single malt whiskey is made from three ingredients. Malted barley, water, yeast and time. When it comes to the malted barley, the product is taken in, and the moulting process is effectively germination, where the long-term starches are turned into sugars.
To stop this process from happening, hot air pumps over the top from the bottom of the barley, and during this process, burning barley occurs – giving it that smokey flavour to the whiskey.
From fermentation to distilling, the liquid of sophistication just keeps bubbling away until it reaches that utmost maturation stage to be stored in barrels.
This process is where the richness and depth of the spirit ignite its amber flames in colour, and wah-lah, the ooh-la-la of whiskey, is born.
While returns of 4,700 per cent are exceptional, and whisky investments are unlikely to help you retire early, the fundamental principle to bear in mind is that whisky casks do naturally appreciate over time.
Generally, the longer a whisky has been aged in the cask, the higher the price it can command.
Not only are a dozen new distilleries being built across Scotland, from Edinburgh to Islay, but old moth-balled distilleries, dark for decades, are also being dusted off, revamped, and their stills fired up.
Knight Frank’s Luxury Investment Index noted that “rare whisky had done better than other fine collectables such as wine, art or jewellery, rising 564 per cent in the last decade.”
In an article with Forbes, “the first half of 2021 saw 85,000 bottles of fine whisky traded on the secondary market, worth more than $48 million, with the sales value up almost 30 per cent in 2019 alone.”
At the top end, take, for example, the recently released 1976 Littlemill Testament from the long-closed Littlemill Distillery in West Dunbartonshire, Scotland’s oldest licensed distillery.
Yes, it will set you back $10,823 a bottle, but since 250 are made, it could prove a wise investment.
Or what about the 50-Year-Old Glenrothes? Only fifty bottles were made globally, with a price tag on this rarest of liquids resting at $35,000.
“Collectable super-luxury spirits referred to as investment grade whisky in the business has rather suddenly emerged as a significant player on the auction markets,” stated Forbes.
Purchasing bottles is a more tangible investment for those less interested in the spirit but may take more effort than purchasing shares.