Whisky, A Bad Habit, Or An Underrated Investment Product?

While drinking too much alcohol is bad for our health, buying and saving a rare bottle of fine wine, whisky or scotch is a much better idea. Wine and whisky are great places for investing money if you know what you are doing. As in any field, you will need to conduct market research and then analyze the best investment opportunities.

For more details, this whisky investment guide offers great study materials. There is perhaps no better feeling than pulling out a rare bottle of wine from your specifically hidden space to show all guests and make yourself feel proud. Lately, whisky together with wine and classic cars is becoming a popular investment instrument. We will analyze important trends and peculiarities of whisky in this article. After reading it you will be ready to start your journey as a whisky investor.

Most Expensive Whisky?

For example, a 50-year-old whisky from Glenrothes is available at 35 000 dollars. 40-year-old Glenfiddich was sold at auction for 830 000 pounds. These examples make whisky and wine investment more attractive. Recently Asian collector bought a “one-of-a-kind” cask of Ardbeg from 1975 for an eye-whopping price of 16 million pounds! Yes, sixteen million pounds was paid for a bottle of whisky. So, what can we deduct from this information? Whisky is becoming luxuries like classical cars, artworks, or fine wine.

Considering this, it is a good idea to study more about them. But, not all investors have millions or even thousands of dollars to invest in risky and expensive drinks. For beginner investors, extra caution is needed. One way to protect yourself from getting frustrated in this field is not only to know which whisky to buy but also how to analyze the market. It is important to know if Whisky gets better with aging.

This is important information. Like wine whisky too is getting better with aging but there is a catch, only in the barrel can whisky be aged. Its maturity stops when bottled. This is a very important piece of information to assess the investment opportunities in the whisky markets.

Buying Whisky VS Buying The Stock Of A Whisky

What are the pros and cons of investing directly in whisky or buying their stocks? Buying a whisky is more like buying any low-liquidity asset like a car or house, especially if it’s an expensive and rare bottle. If you are able to sell your stocks in seconds in the case of whisky or any other luxury it could take some time to sell it and make your profit, not to forget that the temptation to open and taste it could be high.

Who doesn’t want to open whisky, pour it into a beautiful glass, and watch city views from home while drinking it? If you know the temptation for you is high it may be a good approach to buy the stock of your preferred brand instead. Some companies are called blue chips and they even provide dividends. And you can sell your stocks quickly if needed to reinvest your capital in something else or buy another stock, while selling your whisky and buying another may not be as convenient. Buying and saving the whisky almost guarantees its price is going to grow in time. The older it gets, the pricier it becomes.

Like any luxury, the rarer and older the drink is, the more valuable it becomes, especially if the company went extinct. The fact that wine and whisky become more valuable like fine arts the older they become means your investment is supposed to only increase in value. But before jumping in you will need to conduct the whisky market research and analysis, as in any field there too are some important nuances and details you don’t want to miss. Like the one critical nuance we described above there will be some other nuances to know.

So, study more and equip yourself with the best knowledge possible because now it is time to think about alternative investments when markets are falling and countries struggle to face inflation. The negative side of buying stock is the current bear market and falling prices.

In this regard, investing in a rare bottle of whisky could be more attractive in current bear markets as it becomes a good way to protect your wealth because if inflation rises further your whisky will surely cost more. Luxuries never lose value and are always a way to go to protect your capital. 

Many investors started to invest in precious metals and other safe haven places in attempting to hedge their risks against inflation and falling stock prices. You could think it is a good idea to buy stocks when prices are low but beware this could be a bear trap and markets are not limited to stop falling they could go even lower and reduce your investment. That’s why experienced investors prefer safe havens during recessions.