Investors looking for a safe and lucrative haven for their capital are increasingly turning to alternative assets like fine wine, classic cars, and art. According to the Knight Frank Luxury Investment index, though, there is one asset that consistently outperforms both other luxury assets and the FTSE and London property market; over the past decade the value of rare whiskies has increased by a remarkable 582%.
Most investors are probably familiar with the idea of buying rare bottled whiskies to cash in on this burgeoning market, but the practice of buying whisky while it is still maturing in the barrel, known as cask whisky, can bring even greater rewards.
Companies like Tomoka Casks use their industry insider knowledge and little black book of contacts to find casks from up-and-coming distilleries or established classics which offer exceptional investment potential. Purchasing whisky in this way allows investors and collectors to enter the market before the whiskies have been bottled and released, setting the stage for excellent future returns.
Whisky is the only asset except for fine wine that consistently gains value as it ages, with an average annual gain of at least 9%. This is especially true for cask whisky which can increase in value dramatically as it hits the 10-12 year mark. Unlike bottled whiskies, cask whiskies continue to evolve as they remain in the cask, developing complex and highly sought-after flavour profiles. As well as the changes in flavour, cask whiskies can also grow in rarity as they age as the number of similar casks in existence dwindles.
Cask investment can also bring financial benefits since it is not subject to capital gains taxation. Investors looking to diversify their portfolio without attracting additional tax liability can safely and confidently divert some of their capital into purchasing whisky casks, knowing that their investment will reap a healthy tax-free return. With Tomoka Casks investors can enter the market with as little as a £5000 initial investment.
When investors do decide to exit the market there are a number of strategies which can be pursued including bottling the whisky or selling to private clients, at auction, or to another distillery. There is very high demand for top quality Scotch or Irish whisky for blending or investment purposes which makes exiting the market a profitable and straightforward process.
The global whisky market is growing at an unprecedented rate which has caught many distilleries by surprise. As a result casks are becoming more and more difficult to get hold of as distilleries respond to increased demand and plan for the future. Today the quantities of aged whiskies available on the market is extremely limited. This creates a fantastic opportunity for investors who are able to acquire casks and to hold onto them for a few years while they mature and gain value.
Fortunately thanks to our extensive experience in the industry, Tomoka Casks can offer unique access to single malt casks of maturing and new make spirits. Investing through our platform guarantees you entry to this exclusive closed market and our team is always on hand to guide you through every step of the process.
For more information on entering the whisky market, please contact the Tomoka Casks team.