These days, in the era of cryptocurrency, it can be really hard to work out what is actually worthwhile investing your money in. With ever-changing financial horizons, you want to put your money into something that you know you are going to get a reasonable return on. You also want to make sure that you can trust the source of your investment. Considering all this, if you have the money to invest, why not buy a cask of whisky?
Why is whisky a worthwhile investment?
While crypto may be temporary, whisky is forever. With a rich history in Scotland, Ireland, and America, the drink has been popular for hundreds of years. Whiskies from across the globe, such as Japanese whiskies and Indian whiskies, have become increasingly popular in recent years – it’s a product for which demand never seems to cease.
People are willing to splash out their cash on old and rare whiskies to complete collections that they own. Buying and selling bottles of limited edition whiskies is extremely profitable, so why not take it one step further? Why not buy an entire cask of whisky?
How does buying a cask work?
After buying a cask of whisky, the distillery will store and mature the dram for you. Then, once you are satisfied with the maturation period, the cask will be bottled. The number of bottles you will get will depend on the size of your selected cask. It is up to you then what you would like to do with these bottles – keep them to yourself or sell them on to make a profit!
Do your research
Before investing in a cask of whisky, it is important that you do adequate research. What size of cask are you looking to buy? What kind of wood would you prefer? What else is the distillery offering if you buy a cask from them? Some distilleries allow you to make a few visits to see your cask during the whisky’s maturation period. Look into several distilleries and find the one that seems to align best with what you want. Don’t settle for a deal that you aren’t completely happy with!
It is also important to keep an eye out for scams. Buying a cask from a well-known distillery should be a pretty safe bet but it is still wise to keep your wits about you. Looking into a variety of distilleries will make it easier to sift out anything that seems a bit suspicious. If a distillery doesn’t have information about buying casks readily available on their website, proceed with caution!
How much is a cask of whisky?
This really depends. The type of cask that you buy will have an impact on the overall cost, as well as the distillery that it comes from. Generally, a contract is written up with an overall sum that will include the cost of the cask before the maturation process occurs as well as insurance and warehousing costs. Then, once your whisky is ready to go, there may be an additional bill to pay which will cover the cost of bottling the whisky and VAT.
You are normally looking at spending at least a couple of thousand pounds in total. However, you will most likely make this money back and more if you decide to sell the bottling from your cask.
What are the benefits in buying a cask of whisky?
There are many benefits that come with buying a cask of whisky. The investment alone allows you to be a part of the rich global whisky heritage as you will eventually have a single cask release to call your own. You can also share this whisky with your family and friends, so together you can celebrate the delicious dram that you have ownership of.
Additionally, if you decide to sell the bottles from your cask on, you will hopefully make a decent amount of money from these drams in return. Single cask releases are always in high demand in the whisky world, so you will likely be on great footing to make an excellent profit.
Why do distilleries sell casks of whisky?
Selling casks of whisky is as beneficial to the distillery as it is to those investing in the casks. This is a fast way for distilleries to earn money – while you will not see a financial return on your cask for a few years, distilleries are making thousands of pounds instantly with every cask that they sell.
Selling casks is particularly beneficial to new distilleries as this keeps money coming in whilst they are waiting for their own whiskies to mature. Additionally, if a distillery is trying to fund an upcoming project, starting a cask program is a great way to bring some money in. Selling casks is one of the best ways for distilleries to earn money really quickly.
While you are spending a significant amount of money upfront when buying a cask of whisky, the long-term financial gain from selling your bottles on generally tends to massively outweigh the original cost. If you’re a whisky lover looking to invest, we couldn’t recommend buying a cask enough. Not only do you make a significant profit, but you will also have a piece of whisky history that you can forever call your own.