Barrels of whiskey are also outperforming Bitcoin and the S&P 500 Index, and if you’re wondering how to invest during these unpredictable times, you don’t have to look any further than whiskey.
According to the BC20 Whiskey Barrel Index, $ 100,000 worth of whiskey barrels purchased in July 2018 would be worth roughly $ 160,000 as of the end of last June, according to statistics published in the Times. Even more unexpected, he claims that investing in the popular digital currency Bitcoin, the S&P 500 index, or even gold, a traditional safe haven, would not have produced the same level of returns.
Within Scotch whiskey, the two most popular types are blended whiskey (which accounts for 80-85 percent of all scotch consumed) and grain whiskey (which accounts for most of the scotch consumed). Malt whiskey, which is generally higher quality and therefore more expensive, is a relatively smaller but rapidly growing segment of the market and is likely to continue to grow. Traditionally more dominant in Western Europe and North America, it has been observed in recent years that as the whiskey industry evolves, consumers are eager to expand beyond well-known blends such as Johnnie Walker and Chivas Brothers and try Single Malt. Japan, Singapore, Hong Kong, Taiwan, and more recently China are all examples of this.
Market trends show that customers are increasingly moving towards single malt whiskey, particularly the older and rarer whiskeys, in a wide range of countries. As stocks of high quality single malt have dwindled, this has inevitably resulted in a shortage of old casks, presenting an opportunity for investors who will find their older casks in considerably higher demand. Within traditional markets, there has been an increase in the number of whiskey enthusiasts looking for even rarer ‘single barrel’ bottlenecks (usually only a few hundred bottles produced), resulting in a boom in the number of independent bottlers meeting this demand, with more than 1,500 independent bottlers now operating worldwide.
Although the stock markets and real estate still continue to dominate traditional investment strategies, diversifying your portfolio into whiskey barrels, which are one of the few assets that continues to gain value in times of economic downturn, is a smart move.
“Social turmoil is often a time when investors evaluate their portfolio and examine new ways they can protect and benefit from their savings, this global pandemic is no different,” Vintage Whiskey’s Casey said in a press release. .
“Investing in whole barrels of whiskey is a strategy that helps investors build and safeguard their wealth, while providing a diversified investment approach.”
This should come as no surprise to those who have been closely watching the whiskey market. There are an estimated 22 million barrels of aged whiskey stored in Scotland alone. Distilleries used to be much more reluctant to release their casks, preferring to benefit from their long-term matured whiskey. Barrels, on the other hand, have become much more accessible on the open market, and barrel collection has gained popularity as a result.