Rare Whisky Collecting
Rare whisky isn’t just an exquisite tipple – it’s a valuable collector’s item. Whether you’re a whisky connoisseur or just starting out, whisky can be an excellent asset to own. We carry a wide range of superior-grade whiskies from the most exclusive distilleries and – with guidance from our experts – you can find the perfect addition to your collection.
But, why exactly should you start collecting whisky?
Increasing Value
Whiskies that have been aged for a long time are typically more expensive than younger blends, which means that whisky will generally become more valuable over time. This is due in part to the enhanced flavour that whisky develops when it is aged for an extensive period. Many whisky connoisseurs maintain that the flavour becomes bolder, and the blend becomes smoother over time, for example.
However, this isn’t the only reason why whisky tends to increase in value. When whisky is matured in a wooden barrel (cask), evaporation causes approximately 1-2% of its original volume to be lost each year. Colloquially known as ‘The Angel’s Share’, this effectively decreases the availability of the asset. As availability decreases, the inherent value of the whisky rises, so a collector’s assets can increase in value the longer they are owned.
Rising Demand
Whisky collecting has become increasingly popular as demand has soared, so it’s not surprising that many people are seeking to broaden their portfolios with this luxury commodity.
Distilleries typically cap the number of casks or bottles they produce, so there is only ever a limited number available. Over time, this number decreases as they are purchased and consumed. As the number of assets is reduced, demand is subsequently increased and, as a result, the value rises too.
This, combined with the natural depletion caused by the evaporation process during ageing, means that demand often outstrips supply, which is why rare whiskies can command huge sums when they come up for sale.
What Are the Risks?
The whisky market is not a regulated industry and UKV International AG is comprised of whisky experts, not financial advisors. Due to this, we do not provide financial advice and cannot offer any guarantees regarding the potential increase in the value of whisky. For specific financial advice, please contact a financial advisor or consultant.
Like all commodities, the price of whisky can rise and fall and there are various elements that can affect market performance. Before you decide to begin collecting whisky, it’s advisable to learn about the market and the factors that trigger market fluctuations.
If you want to learn more about whisky collecting, our in-house experts will be happy to answer any questions you may have.
“With such an eye-catching track record, Scotch whisky is becoming a serious consideration for investors. UKV International, a Swiss based Fine Wine and Whisky company, agree values have seen a dramatic increase, but suggest more conservative uplifts of 10-20% pa to collectors.”
“Whereas whisky was once a niche investment, it is now holding its own as a serious contender in the alternative investment space. Its appeal lies in the fact it is a tangible soft commodity which has demonstrated both stability and strong long-term performance. Its global nature means that, as an asset class, whisky, particularly single malt scotch, can weather turbulence in mainstream markets.”
“Whisky is not only highly prized for its depth of flavour, it is a bona fide collector’s item – and a premium asset capable of providing the sort of return for your money that banks and building societies cannot offer… Buying into a cask of fine whisky can provide impressive annual returns, on average 12 per cent. Holding on to investments in excess of five years often increases profitability”
“Alex James, Senior Consultant of UKV International AG announced that, in line with the company’s dedication to clientele and the whisky industry, UKV is collaborating with Elite Wine and Whisky and its storage division, Elite Whisky Storage, to establish a bonded facility in Edinburgh within the coming year.”
