Whisky is fast-growing asset market, per World of Whisky

News

April 3, 2023

Jameson_Distillery_Dublin,_Ireland Irish World of Whisky

Whisky is one of the fastest-growing asset markets, increasing 225% over the last six years compared to gold’s 50% rise over the same period, according to World of Whisky.

The global demand for whisky is constantly and consistently on the rise, especially in Asia where it has become a symbol of status and wealth. As the demand for whisky continues to increase, the value of rare and vintage whiskies naturally rises along with it. With typical returns ranging from 12% to 20% per annum, many investors looking to diversify have understandably expanded their portfolios to include whisky.

Whisky has a very long history of providing steady returns to investors. Being a class that has low correlation with other assets like stocks and bonds, it is a valuable source of diversification – particularly during times of market volatility. Not being subject to market fluctuations provides reliability as a long-term investment.

At present there are only 143 whisky distilleries in Scotland and the demand for ‘Scotch’ is five times the current annual supply. This deficit in supply and demand ensures continual growth of the price of high end premium casks. Whiskey which is made in Ireland is also making some growth outperforming scotch in America for demand, Irish Whiskey was up 17.8% opposed to Scotch at just 3.3% making Irish whiskey the fastest growing premium spirit in the world

Whisky can retail for thousands, sometimes tens of thousands of dollars a bottle. Many whisky expressions are also highly collectible due to their small batch numbers.

Predicted to reach $110 billion by 2032, the global malt whisky market is a very attractive hedge against inflation. It is also exempt from capital gains tax due to being classed as a wasting asset, meaning more profit for investors when it comes to selling. Between 2011 and 2021, the Knight Frank Luxury Investment Index listed Scotch whisky as the best-performing asset class with an appreciation of 587% among luxury collectibles.

World of Whisky, who are a specialist whisky cask broker, started life as a corporate distributor with many clients in every corner of the planet. In response to the burgeoning demand and a surge of independent and high net-worth investors into the market, World of Whisky was born into an advisory service helping to introduce new investors to award winning distilleries.

Having been inundated by clients wanting to buy their own casks they saw a unique opportunity to carve a niche in an industry the management team are already very familiar with and have had lots of success with. As whisky lovers themselves they have stated it was a very natural transition and one which led to one of the ultimate goals – bringing their own bottled World of Whisky brand to market, due to be launched later this year.

“The whisky maturing process has typically been generating returns for an exclusive community of the wealthy for hundreds of years,” World of Whiskey Director Neville Swann said in a news release. “Historically only distillers, blenders and a select few were able to benefit from this fantastic market. I have opened World of Whisky to help provide private investors the opportunity to purchase both new cask or premium, branded Scotch whisky and Irish Whiskey of the highest quality at wholesale rates. To provide as much security as possible, when purchasing your cask all assets are fully insured and stored in a bonded warehouse or directly at the distillery. Our team has over 60 years experience in both the investment and beverage industries which we leverage to ensure that we only work with leading award winning Irish and Scottish brands and distilleries.”

For more Information, visit www.worldofwhisky.co.uk.

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