While quaffing it may be the only thing most connoisseurs want to do with a fine bottle of whisky,
many shrewd investors are turning to rare and collectible whisky as the next hot commodity. Martin Green, head of whisky at Bonhams, gives some insight into this growing phenomenon.
Investing in whisky, rather like gold bullion or fine art, has become an attractive alternative to traditional financial holdings. Bonhams auctioneers held the first stand-alone whisky auction in Glasgow 15 years ago. Until then, whisky was always sold in a mixed sale, usually with wine and other spirits.
These days, Bonhams manage four dedicated whisky sales per year in Edinburgh, at which they sell around 90% of their stock, as the market has risen and strengthened each year.
In the UK, auction sales of rare whisky are reported to have increased by 35% earlier this year, according to Rare Whisky 101, cited by The Independent newspaper.
On 9th December, Bonhams Annual Christmas rare and fine whisky sale will be held in Edinburgh, featuring The Bowmore Trilogy, a trio of extremely rare whiskies estimated at around $18,000-$21,000 in value, including One of the scarcest whiskies in the World: the Royal Brackla 60-year-old (1924), Other bottles in the sale include the Macallan Select Reserve 52-year-old (1946) estimated at around $7,500-$9,000, and the Dalmore 50-year-old (1926) with an estimated value of about $6,000-$7,500.
“Interest in whisky has been growing steadily for many years,” explains Martin Green, “One [reason] would be increasing wealth in the Far East where whisky is seen as a premium product and an indication of taste and sophistication.”
He then goes on to add that there are many people who collect whisky because “it fascinates them, they are captivated by its history and romance, and — of course — because they like drinking it.”
He also explains why whisky is becoming so popular as a collectors’ item, “People collect it because it has a longer shelf life than wine, and once bottled, whisky can be stored indefinitely.”
Unlike wine, whisky does not need to be stored in cool, humid and dark conditions. Because of its high alcohol content, it can be stored in most environments, as long as there is not too much light or fluctuation in temperature, Bottles should be stored in an upright position, and all possible care should be taken to avoid damage to the bottle or label, factors which can reduce the value.
But it’s not limited to just Scotch whiskies. Whisky sales are also going from strength to strength in Japan, which until relatively recently, lived in the shadow of Scotch whisky, A huge amount of hard work has gone into developing premium Japanese brands, and collectors both in Japan and increasingly internationally have started to take notice.
"people collect it because it has a longer shelf life than wine, and once bottled, whisky can be stored indefinitely".
In 2014, for the first time, a Japanese single malt was awarded 97.5 marks out of 100 by the Whisky Bible 2015, and received the accolade of best whisky in the world, with whisky expert Jim Murray describing the Yamazaki Single Malt Sherry Cask (2013) as a drink of “near incredible genius”. Furthermore, in Hong Kong last August, a bottle of 1960 Karuizawa sold for $HK 918,750 (about $119,000) at Bonhams, setting an auction record for a Japanes whisky.
Private investors can also get access to the whisky market online. BullionVault, the world’s largest physical gold and silver market online, together with a former director of Diageo — the world’s leading Scotch whisky brand owner, launched the online platform, WhiskylnvestDirect.com in 2015.
The company creates a liquid marketplace (no pun intended) to allow private investors to buy many different whiskies while they are still maturing in the barrel.
Using the same online platform, investors can then sell the whisky they own to the brands that create blended whisky. According to WhiskylnvestDirect, these brands account for nine bottles in every ten sold worldwide.
Rupert Patrick, Co-Founder & Chief Executive, commented, “I’ve never been more confident than I am today about the outlook for Scotch globally. Scotch’s status as a luxury product offers the potential for steady growth in demand, especially as emerging affluent countries increase their spending on luxury goods.”
When it comes to collecting whisky, quality, rarity and provenance are key things to look out for. By definition, bottles from distilleries, which have now closed, are going to be scarce and that will add to their appeal. Many leading distillers produce special limited editions of their very finest whisky, which then go on to become collectors’ items.
