How whisky became known as liquid gold – and you don’t need to be an expert to invest
With a growing number of people from all backgrounds getting involved in whisky, it’s no longer relegated to the dusty top shelf of the bar.
In fact, single malt is earning a rightful reputation as liquid gold as the market goes from strength to strength: Scotch whisky exports broke records in 2022, growing to more than £6 billion for the first time.
If you’re looking for a long-term investment, it offers the potential for long-term gains – after all, whisky just gets better the longer it’s left to age in the barrel.
And with cask traders Vintage Acquisitions, you even have the option to visit their London HQ and sample some of the finest Scotch around; they work with many top distilleries to source the widest range of quality cask whisky at the best possible prices.
Getting better with age
“If you were to try a young single malt, maybe of eight years old, and then to try a 25-year-old whisky, there is a complete difference there,” explains Sam Brooks, who founded the company in 2011. “Whisky by its nature can’t help but mature and improve the longer that it is in the cask. And the older it gets, the rarer it becomes, because 90% of casks get bottled between three and ten years old and go into blended whiskies.
“The eight-year-old will still be quite abrasive possibly, because it hasn’t had time to mellow in the cask. What happens inside all casks is a natural evaporation called the angel’s share which can be up to about 2%, though it is rarely as much as that.
“That means that the ABV slowly comes down; a spirit will be distilled and put into a cask at 60%+ but over the years, that will come down and there will be a big transfer of characteristics from that wood, whether that wood was originally a bourbon barrel or a sherry butt, or even a rum barrel or a cognac cask or a red wine cask. It’s a very, very slow process so an eight-year-old will be completely different from a 25-year-old.”
Why the market is booming
Interest from the Asia-Pacific region is helping to fuel the growth of the industry: last year, a cask of Ardbeg distilled in 1975 sold to a private collector in Asia for a record-breaking £16 million.
And Sam’s personal favourite, the Bunnahabhain single malt Scotch whisky, is also enjoying a surge in popularity with owners Distell International seeing their annual profits double. Pre-tax profit rose to £17.7 million for the 12 months to the end of June 2022 from £7.8 million in the previous 12 months in what it said was an “exceptional” year.
“Bunnahabhain are the only distillery in the Islay region to specialise in unpeated whisky and they do excellent sherry cask whisky; for value for money, it’s fantastic,” adds Sam. “Their 12-year-old is their entry level single malt and it’s an exquisite dram for the price. And if you can afford a little bit more, they do an 18-year-old, a 25-year-old, a 30-year-old and a 40-year-old and they’re all absolutely brilliant.”
Join them for a dram
The beauty of whisky being a tangible asset is that you can try it for yourself, and everyone is welcome to visit Vintage Acqusitions’ London Bridge offices to find out more.
They buy, sell and broker whisky to market newcomers, whisky enthusiasts and experienced traders alike – just head in for a quick dram or sit down with your own dedicated account manager to begin your own whisky journey.
Once you have made up your mind, according to your needs and your budget, you’ll receive an invoice; when that is settled, you’ll be sent an ownership pack which includes the certificate of title for your cask. Your cask will be held in one of their secure HMRC-licenced warehouses (or you can have it transferred to your own bonded warehouse account) and you’ll also be enrolled into the exclusive Vintage Whisky Club.
How long should I hold my cask?
That is completely up to you, but Vintage Acquisitions usually recommend a minimum of five to 10 years. They will discuss this with you in detail before you make your decision so it can be tailored to your needs but just remember that the longer you hold, the more the whisky improves, the rarer it becomes and larger the potential returns could be.
Is there a minimum purchase price?
No… depending on the stock held by the company at the time, the minimum investment will be the price of the lowest value cask when you start the process. It can vary from day-to-day but there is no minimum.
Find out more about liquid gold today
Head to the Vintage Acquisitions website to download your free Whisky Cask Investment Guide which contains all you need to know about getting started.
This is paid-for content on behalf of Vintage Acquisitions, and does not necessarily reflect the views or advice of the Yorkshire Post. As with all financial investments, your investment may go down as well as up, and people are recommended to take financial advice.