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Did You Know You Can Invest In Whiskey?

whiskey drums

Whiskey, like gold, wine, and real estate, is increasingly recognized as a viable alternative investment asset. Particularly during periods of economic instability, inflation, and recessions, whiskey has shown an ability to maintain and even increase in value.

Over recent years, whiskey investing has surged in popularity, and now might be an opportune time to capitalize on this growing market.

Despite global disruptions like the pandemic, demand and prices for whiskey have remained strong. In 2021, the whiskey market reached almost $80 billion and is projected to grow at an annual rate of 6.9% between 2024 and 2032, according to Global Market Insights.

Furthermore, rare whiskey bottles often sell for hundreds of thousands of dollars at auctions, making this a compelling investment.

Why Physicians Should Consider Whiskey as an Investment

Here are four compelling reasons why whiskey will make an attractive investment in 2024 and 2025 for physicians:

1. Historical Performance

The whiskey market has consistently grown over the past decade, making it a reliable long-term investment. For those in the medical field used to evidence-based decision-making, this data-driven approach can add confidence.

Key indices like the Rare Whisky Apex 1000, tracking 1,000 rare whiskey bottles, have shown over 416% growth. Other indices, like the Rare Whisky Icon 100 and Vintage 50, have demonstrated growth rates of 391% and 301%, respectively.

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Additionally, the Knight Frank Wealth Report reveals that rare Scottish single malts have increased by 586% in value over recent years. This historical performance speaks to whiskey’s resilience and profitability.

2. Market Expansion

Whiskey’s growing popularity as a drink and investment asset is hard to ignore. In 2021, the market was valued at $79.6 billion and is now expected to reach $109 billion by 2025.

Notably, the demand spans across Asia, Europe, and North America, though Asian investors have shown particular interest in this alternative asset class. Younger investors are increasingly drawn to whiskey due to its relatively affordable entry point and potential for significant returns – making it an appealing option for high-earning professionals like physicians.

3. Return on Investment (ROI)

The average annual ROI for whiskey investments hovers around 10%, but rare bottles can yield even higher returns.

For example, the Bowmore 50-Year-Old Single Malt Scotch Whiskey saw a price increase of 100.1%, rising from $24,869 in 2021 to $49,760 by mid-2023. The Macallan 18-Year-Old Single Malt experienced a 53% jump, going from $874 to $1,339 within a year.

Rare bottles, like the Macallan 1926, have fetched over $1 million at auction, highlighting whiskey’s exceptional potential for high-net-worth individuals.

4. Accessibility

Thanks to online platforms, whiskey investment is now more accessible to both seasoned collectors and everyday investors.

While whiskey casks are usually priced at tens of thousands of dollars, not including the storage and insurance, with platforms like Vinovest, you can start investing with a few hundred dollars.

Physicians can take advantage of this ease of access to diversify their portfolios without the need for substantial upfront capital or daily monitoring of the holdings’ performance.

How to Invest in Whiskey: Two Key Approaches

1. Investing in Whiskey Bottles

The simplest way to begin is by purchasing individual bottles. This allows you to gradually build a collection over time. However, successful bottle investing requires a few considerations:

  • Ability to authenticate rare bottles.
  • Identifying collectible brands and limited releases.
  • Estimating fair market value and potential appreciation.
  • Ensuring proper storage conditions.

This long-term strategy may not provide immediate returns, but with patience, it offers an excellent opportunity for capital growth.

2. Investing in Whiskey Casks

For a more immersive option, whiskey cask investments allow you to purchase casks directly from distilleries. Whiskey ages well in casks, improving in quality and value over time. Investing in casks offers more flexibility – you can have the whiskey bottled, blended, or left for additional aging. A 53-gallon cask could hold around 266 bottles, with potential for exponential growth in value.

Considerations include:

  • Holding periods (typically a minimum of three years).
  • Barrel storage fees and upkeep.
  • Bottling and labeling costs.
  • Tax implications (VAT and Duty).

Cask investments have historically returned 12%-15% annually over the past 15 years, making them a lucrative long-term option.

Outsourcing Whiskey Investments for Busy Professionals

For physicians with limited time, platforms like Vinovest offer a hands-off approach to whiskey investment.

Vinovest is the largest wine and whiskey investing platform in the US. It handles everything from authentication to storage to selling, allowing you to benefit from whiskey’s potential without the need for in-depth research or management.

With its track record of profitable whiskey exits, Vinovest returned over $27M to investors, earning them annualized returns of 20% and above. Learn more about how whiskey investing works and tap into the remarkable growth and global demand for premium American whiskey and Scotch.

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4 thoughts on “Did You Know You Can Invest In Whiskey?”

  1. I am interested in the concept of buying a whiskey cask, but certainly more as a hobby than as an investment. I looked up reviews of Vinovest and they are absolutely horrendous. From lack of customer service to horrible return on investment, it seems like this might be a scam.There seems to be a serious lack of transparency with existing investors. What due diligence went into this company before they were asked to present to physicians? To me this is the type of investment that physicians should stay away from, as it is purely speculative. With that said, I may still buy a barrel since I enjoy bourbon and $3800 isn’t enough to keep me up at night if it tanks. I think this should be considered a splurge instead of an alternative investment…..

    Reply
  2. Subscribe to get more great content like this, an awesome spreadsheet, and more!
  3. I’m a whiskey guy, and I think this is a market bubble. When you say “the whiskey market has consistently grown over the past decade,” I think back to the 70s, when there was a whiskey bust and producers made a lot of “collectible” decanters to sell it in, because the decanters were more prized than the liquid inside. American whiskey boomed between 1945 and 1970, 25 years. The subsequent bust lasted 30 years. We are now 18 years into the revival. It seems like everybody and their brother is starting their own “craft distillery” and the big manufacturers are adding production as well (overproduction happened at the end of the last boom, too). People stand in line for releases and pay stupid prices for a bottle based on rarity, not quality (nobody would pay $600-1200 for a bottle of 10-year-old Old Rip Van Winkle if there were a couple bottles of it in every liquor store every time you went there). All it’s going to take to pop the bubble is for some other spirit (tequila, anybody?) to become the next hot thing.

    Reply
    • Hi Dean, and thanks for your comment! To begin with, you’re talking about whiskey bottles, which is not what we’re offering – we only enable people to invest in whiskey casks that are then bottled for consumption. The dynamics of these markets are different.

      There’s also a lot of difference between the period you’re referring to and now: In the 1970’s, 80’s and 90’s the American whiskey market was stagnant and focusing only on low priced whiskey. From a cask investment point of view, here are several points worth looking at:
      1. The whiskey market is probably 3,000% larger today than it was in 1985 when both China and India were closed markets, and the Red Curtain was still shut.
      2. While cheap, bulk-produced whiskey was the focus in the US and Canada in that time frame, that is not entirely the case with Irish and Scotch. However, the UK market was under incredible financial constraints at that time.
      3. I do agree that the American sentiment has changed on ultra premium bottles of American whiskey, but that is not really what we are offering. Our focus is on whiskey casks to be bottled for the sub $100 range for the US market. For single malt, scarcity is an incredible tool for maintaining cask valuation. 30 year old cask of Macallan, while being INCREDIBLY expensive, has demand in all major Scotch markets, and at 1% a year of angel share evaporation, a cask goes from roughly 230 bottles to 161 bottles, not counting for any of the Macallan barrels of that year that have already been drained.

      And we could go on and on, you raised great points that require thesis-grade answers addressing macroeconomics of several countries and micro economics of specific companies. Luckily, we at Vinovest employ whiskey and financial experts with decades and decades of experience in their respective fields.

      We invite you to book a call with one of our advisors if you are interested in a deeper discussion.

      Reply

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