Since there is a widening gap between demand and supply of aged liquor, most of the producers of Scotch whisky are struggling to meet the demand of consumers. As a result, demand for vintage Scotch whiskey has risen to unprecedented levels. Today, even the second-hand market for this liquor has become much stronger.
All these developments have not only increased the price of rare bottles to greater heights. They have also presented a unique opportunity for people to make gains with whisky investments. Companies like Spirit Vault Collective are involved in helping their clients procure these rare whiskeys. They have the experience of storing and sourcing old varieties of whiskey and have helped many of their clients and collectors get hold of the bottles that they desire to own.
Let us discuss the benefits of investing in a product like a whisky in the current scenario.
1. Returns On Investment
Over the last five years, people could generate an average of 12.4% returns per annum from the whisky. Some of the popular distilleries are delivering even much higher returns. Products like these offer robust growth on investment under any kind of economic cycle.
2. Maturation
One of the very unique aspects that you will find with investing in whisky bottles is that it will continue to mature as it gets old, which is in stark contrast to many other tangible assets. Only a few other assets like precious metals, properties, and artworks appreciate with time. Most other products depreciate.
3. Tangible
Whisky bottles now also are kept in certain government bonded warehouses, where you can visit the facility and see your holdings too. Whisky bottles can give faster returns compared to most other tangible assets because of their immense demands worldwide.
4. Provenance
The Scottish government has imposed a restriction, where every Scotch whisky bottle case has to be held in a certain government bonded warehouse so that it can be easily identified by its date of distillation. Whereas most other assets can be fake or forged too.
5. Liquidity
The
re are always active buyers who are looking for old liquor bottles and try to hold them for further appreciation. An investor can exit from their holdings anytime and can initiate its sale as per his desired asking price.
6. Consumable
Each year, there will be millions of bottles that are consumed by whiskey lovers all around the globe. Therefore, rare whiskey bottles can dynamically contribute to your economic power. By making investments in good whisky you won’t have to worry about losing money. Of course, you can use them for your own special celebrations too.
7. Surging demand
As the requirement for whisky is continuously growing at a rapid pace while distilleries are struggling to ramp up their production, hence the need for these bottles and bottles of matured whiskey will only constantly increase all across the industry.
8. Limited supply
Over the last 10 years, there is an unexpected growth of this rare liquor industry and most distilleries are running at 100% capacity, despite that they were not able to meet the demand of the market.
Although expansions are continuing, they still cannot meet the market demand. Whiskey investors can reap greater returns within the next few years because of these production constraints.