You might have already heard of people who collect and invest in wine, but what about whiskey and other liquors? If you’re able to withstand the temptation to imbibe in what you buy, you could be sitting on a small fortune after just a few years of carefully planned purchases.
Making Liquid Investments
Right now, the most bang for your buck can be found through investing in wine and whiskey. In 2011, a bottle of The Dalmore 64 sold for $189K, the first six-figure price tag ever put on a bottle of whiskey. A few months later, a 64 year-old Macallan set a world record when it sold for $460K. This sale alone opened up the world’s eyes to the amazing investment opportunities that lie among the various types of whiskey.
Cask-aged whiskey, whiskey that has been left in the barrel for upwards of 60+ years before being bottled, typically commands the highest price tags.
Where to Buy and Sell Liquid Investments
If you choose to funnel your money into liquid investments, you should target limited releases such as reserved and single cask batches. You can buy your investments at whiskey fairs, auctions, flea markets or direct from other collectors. As you begin to learn more about the industry and the options out there, you should target your purchases to include bottles from top distilleries that taste good as well older bottles from distilleries which are no longer in business.
Protect Your Investment
Once you’ve made your purchases, be sure to keep the bottles at a consistent, even temperature and don’t forget that the corks will need to stay wet in order to avoid shrinkage (once this happens, you should drink the whiskey because if it’s left untouched, the broken seal will allow air inside the bottle, which will destroy the precious contents). You should also store the bottles somewhere away from direct sunlight.
Tips for Investing in Whiskey
Andy Simpson, founder of Whiskey Highland, and David Robertson (the owner of the Dalmore mentioned above), offer these tips:
- Pick the right distillery (well known brands)
- Pick the right bottle (new bottles immediately upon release are best)
- Seek out silent stills (bottles from distilleries that are closed)
- Go for old measures (bottles measured in fluid ounces as opposed to centilletres are more appealing to collectors)
- Go for limited editions (the fewer bottles produced, the better!)
- Go for independents (the more rare, the fewer the bottles available so don’t expect to buy a case)
- Buy upon retail release
- Buy past releases
- Only invest what you can afford to lose!
Good Luck, Penny Hoarders!