- Market Performance Indices reveal that rare whisky investment portfolios have grown over 430% across the last decade
- Historic performance indexes provide the market conditions for a range of whisky categories, including rare vintage collectables, Japanese whisky, and more
- Before making your decision, consider the advantages and disadvantages of investing in vintage collectable whiskies versus modern release whiskies
- Be aware of major players in the market with proven-track records when selecting your investments, such as The Macallan
- Purchase your whisky investments from a reputable online seller, such as Rare Collection, and expand your investment portfolio with market-leading wines
Whisky connoisseurs can vouch for the refined flavours and quality experiences with the best bottles, including The Macallan ‘The Red Collection’ 50-Year-Old Single Malt Scotch Whisky, Singleton 39-Year-Old – Epicurean Odyssey Series, and more. But did you know that investing in rare whisky may be a profitable alternative to consuming your outstanding collection of vintage collectable and modern release whiskies? In this step-by-step guide on investing in whisky, we share why you should consider adding rare whisky to your investment portfolio and offer tips and recommendations to get started.
In this step-by-step guide on investing in whisky, we share why you should consider adding rare whisky to your investment portfolio and offer tips and recommendations to get started.
Top Reasons to Invest in Whisky
Below, we share a list of reasons you should consider investing in whisky to turn your rare collection into a profitable passive income stream.
- The Rare Whisky Apex 1000 Index has grown over 430% across the last decade
- Whiskies get better and rarer with age, typically improving their value with time
- As a tangible asset, whisky is not affected by inflation and is, therefore, a stable investment during economic uncertainty
With a better understanding of the reasons to invest in whisky, you can read on to explore our step-by-step guide to investing in whisky with tips and recommendations for selecting the best bottles for purchase.
1. Consider Historical Whisky Investment Performance
Before purchasing bottles of whisky as investments, we recommend assessing the historical performance of whisky investments. Doing so will give you peace of mind as you select from a collection of premium single malt scotch and other whiskies with proven-track records of investment success. Overall, one should note that historical whisky investment performance is on a steep upward climb. Looking at Rare Whisky 101’s Market Performance Indices, one can see that whisky investing has and continues to grow as more consumers prioritise investing in whisky over other tangible assets.
What Are Whisky Investment Indexes?
Whisky Investment Indexes, like those that Rare Whisky 101 shares, reflect the general market conditions of the best and worst performing whiskies across several categories. You can view the market growth of the Rare Whisky Icon 100 Index, Japanese Whisky 100 Index, or Rare Whisky Apex 1000, for example, each highlighting the market performance of specific bottles relevant to their index categories.
For example, the Japanese Whisky 100 Index represents the market conditions of 100 iconic collector’s Japanese whiskies appearing commonly in UK auctions. You can use these indexes to base your whisky investment portfolio on sound judgement and proven market performance.
2. Explore Vintage Collectable Whisky and Modern Releases
With an idea of the market performance of specific whisky categories, you can now consider your approach to whisky investing – purchasing vintage collectable whisky or modern releases. Typically, vintage collectable whiskies are well-known whiskies that have been in circulation for years and have been on the radars of whisky investors for some time. In contrast, modern releases are often brand new limited edition whiskies that have yet to garner the interest of casual whisky investors.
There are pros and cons to investing in each type of whisky. For example, there is often more market performance data to base your decision on for vintage collectable whiskies. Despite lacking a proven track record, modern releases can be hidden gems in the whisky investment market and show rapid returns in shorter periods. Therefore, vintage collectable whiskies may be considered safer investments and modern releases more risky investments. The choice then comes down to how aggressively you want to establish your portfolio.
3. Be Aware of Major Players When Investing in Whisky
Understanding the major players when investing in whisky can also help you determine your decision, whether selecting vintage collectable or modern release whiskies. The Macallan, for example, is one of the most renowned whisky distillers in the world, and its collection has a successful investment history, as shown in the Rare Whisky 101’s Macallan Index. Therefore, it may be beneficial to invest in both The Macallan’s vintage collectable whiskies and modern releases based on the total market share of the brand. This index also provides further returns data for specific limited editions and collectable whiskies in its product portfolio.
4. Find a Reputable Supplier of Investment Whisky
Much of the whisky investment market revolves around auctions. Still, you can source investment whiskies from trustworthy and reputable suppliers of the finest rare single malt scotch and other whiskies. This method of acquiring investment whisky is far more straightforward and efficient, with the purchase happening entirely online.
Rare Collection is an online store that stocks an assortment of vintage collectable and modern release whiskies. You can find some of the market’s best-performing whiskies in its collection, including The Macallan Sir Peter Blake Tier B and more of the best Macallan whisky to buy.
5. Expand Your Portfolio With Wine Investments
Your investment portfolio does not need to include whiskies alone. In fact, wine investments are increasingly popular among aggressive investors who wish to diversify their investment portfolios. Much of the decision on which wine to invest in follow the same step-by-step guide shown here, and you can be confident in your selection using the Liv-ex Indices as a source for market performance research. And, when you are ready to add wines to your investment portfolio, you can browse Rare Collection’s vintage and fine wines.
While we cannot tell you precisely what whisky and wine will be successful investments, we can confidently advise you to consider whisky and wine investments as a profitable source of passive income generation. Based on market performance, all signs point towards these tangible assets being reliable investments to add to your portfolio. As always, however, we recommend doing additional research and consulting your investment broker before you make your final decision.
*Rare Collection does not take responsibility for investment returns for bottles featured in our Guide to Investing in Whisky in 2022: Tips & Best Bottles for Purchase. Please do additional research or speak with your financial advisor before purchasing. Invest in whisky at your discretion and use these recommendations as a guide, not as definitive proof.