If a bottle of whisky can reach $1million, what could happen if you invest in private whisky casks?
Scotch whisky investment return has seen record growth in the past year, outstripping classic cars and diamonds, according to Knight Frank. Bottles sold at auction are reaching more than one million dollars and the potential investment in private whisky casks has never been stronger.
On 6 March 2019, The Knight Frank Wealth Report revealed that investment in Scotch whisky is now seeing greater returns than classic cars, wine, jewellery, diamonds and watches.
With bottles of Scotch whisky achieving more than $1M at auction in 2018, the potential for return in entire private whisky casks has never been stronger. Bottles have shown an investment return increase of 40% over the past year, and casks look set to follow suit.
Lindores Abbey Distillery has Scotland’s largest variety of Private whisky casks available for purchase.
The options vary from 50L Firkins to 550L Port Pipes, with more than 40 other varieties in between. The options for personalisation are vast, resulting a far rarer product than a single bottle of whisky, not to mention far more to enjoy, share or sell in the future. Casks are available for purchase by individuals, groups and corporations, and our Cask Custodian, Elliot, can guide you through each step of your ownership from purchase to bottling.
The most valuable bottles of whisky have reached astonishing prices because they are rare and desirable, and what could be rarer or more desirable than a bespoke cask from the spiritual home of Scotch whisky?
Drew McKenzie Smith, the MD and Founder of Lindores Abbey Distillery, commented:
“We are delighted to see that whisky investment continues to bring such strong returns for collectors and enthusiasts. Whether you are buying a cask to enjoy with family and friends or to bolster your financial future, Lindores has a vast array of bespoke casks to suit every whisky lover.”
SELECTING YOUR private whisky CASKs
To make this opportunity slightly different we are happy to work with you and find or select the private whisky casks that you would like to put your spirit into as we feel it’s important that you have some connection and input into this very important part of the maturation process. The most popular cask tends to be the 50-55 litre Sherry Firkin Cask, followed by the 250ltr Old Forrester Bourbon Hogshead and 250ltr 2nd Refill Sherry Hogshead.
There are two main options of cask purchase and as an example, the costing for a 200ltr OF – ASB barrel would be:
Option 1: £4000 for the cask with the associated later charges (At bottling, further payments of VAT would be £800 plus an HMRC payment of £2600). This would produce approximately 227 bottles of Cask Strength which would work out at a cost price of just £38.60 per bottle.
Option 2: £4000 one off payment with no further charges, we will bottle, pay duty and deliver 1/3 of the cask to you and retain the remaining 2/3 (At the agreed bottling strength).
After 10 years, as your cask nears its maturation period, we can discuss keeping your cask in our warehouse for an annual fee.
INVESTING IN Private whisky casks
Scotch whisky investment return has seen record growth in the past year, outstripping classic cars and diamonds and with rare bottles reaching more than 1 million dollars at auction, the investment potential has never been stronger.
While this may be true, we have also found that many people buy casks for consumption. Often a group of friends or family club together to buy a cask, because they may want something to bottle for gifting in the future, perhaps to celebrate a marriage or the birth of a new baby. Others buy whisky casks because they are fascinated by its evolution, and love to follow the progress of the spirit as it matures.
And that’s part of the attraction: whisky in the cask goes on evolving in a way that bottled whisky does not and this is what makes buying whisky by the cask so fascinating.
To enquire about purchasing your own private whisky casks please visit CASK OWNERSHIP