Best Whiskey to Invest In

Whiskey has always been a popular investment option for those looking to diversify their portfolio with alternative assets. The value of whiskey can appreciate significantly over time, making it an attractive option for investors. However, not all whiskeys are created equal when it comes to investing.

It's important to note that investing in whiskey requires patience and research. Whiskey prices can fluctuate based on market demand, availability, and other factors. By choosing high-quality, rare, and limited edition bottles from well-known distilleries, investors can potentially see significant returns on their investment over time.

Now, let's find out the best whiskey to invest in!

Understanding the Whiskey Market

Whiskey is crafted worldwide, from Japan to the U.S. to the U.K. Around the world, the demand for different whiskey traditions remains strong. Many people enjoy drinking a glass of high-quality whiskey, but whiskey is also a popular collectible. Collectors take pride in accruing rare and valuable whiskeys.

Whiskey, like wine investments, typically becomes more valuable with time. The whiskey can get stronger and the taste improves over time, making it worth more. And as time passes from when it's bottled, the whiskey will become rare as other bottles in the collection are drunk or destroyed.

Whiskey can often be purchased at retailers, straight from the distillery and other online auctions and stores. Investors may also purchase investment whiskeys from other investors. There's a rising demand for exclusive and limited-release whiskeys, meaning those bottles may continue to rise in value.

Whiskey as an Alternative Investment

Whiskey is an alternative investment, like gold, real estate and art. Whiskey typically increases in value over time, making it a popular investment. Its historical performance speaks for itself, often out-performing traditional markets. For example, the Rare Whiskey Apex 1000, which tracks 1,000 of the most valuable whiskeys, has grown 393.75% since its inception in December 2012. For example, Scotland alone ships 1.6 billion bottles of Scotch whiskey every year.

Demand for whiskey has grown since the pandemic, as whiskey proved to hold and even grow in value during times of recession and economic instability. Its performance has piqued the interest of private and retail investors, and this interest could cause the market to continue with strong performance.

Best Whiskey to Invest In Right Now

If you want to build a portfolio in whiskey, these are some of the best whiskey to invest in now.

1. Macallan 18-Year-Old Sherry Oak

Macallan is one of the most reputable scotch whiskey distilleries and produces many investment-grade whiskeys. It puts out several limited edition bottles per year, such as this 18-year-old Sherry Oak. Inventors are selected to purchase these limited-edition whiskeys via a ballot system. Once they're gone, investors must try to purchase them from other collectors. The Sherry Oak is a recent limited edition release and is expected to rise quickly in value.

2. Johnnie Walker Blue Label Ghost and Rare Port Ellen

The Port Ellen Distillery is a legend in the whiskey world. Though it was closed in 1983, some of its whiskeys can still be found on the market. This Johnnie Walker limited edition release is blended with Port Ellen whiskey, giving it a smoky finish distinct from Port Ellen whiskeys. Because of its use of Port Ellen whiskey, this limited edition could rise in value over the years.

3. Springbank 30 Year Old

Springbank Distillery is a small, family-owned distillery producing some of the most traded whiskeys in the world. Its output is much less than the demand from whiskey collectors, which is why it's a great investment. Over time, their whiskeys can fetch over 10% in returns, especially their premium 30-year, due to high demand and limited supply.

4. Pappy Van Winkle's 23 Year Old

Buffalo Trace is a popular bourbon whiskey distillery in Kentucky. Its Pappy Van Winkle collection is released once every year, and acquiring one of these bottles is a big win for investors. They're released in varying bottle amounts, and some years may be harder to get than others. The Pappy Van Winkle's 23-year-old bottle, if chosen for the lottery, can be purchased for only a couple of hundred dollars, but can quickly skyrocket in price.

5. The Hakushu 18-Year-Old Single Malt Whiskey

Japanese whiskey has recently immensely grown in popularity, making big-name Japanese whiskeys a valuable investment. The Hakushu 18-year is one of the best bottles on the market and could increase in value as demand for Japanese whiskey continues to rise.

How to Choose the Best Whiskey to Invest In

Choosing investment-grade whiskey can be tricky. Here are several factors to keep in mind to determine if a bottle has the potential to rise in value.

• Rarity: The less supply of a bottle, the more valuable it'll be. This is why investors love limited edition or small batch releases. Try and get a bottle of these limited edition whiskeys straight from the distillery or a retailer, and it might grow in value as years pass.
• Age: Whiskey gets better with age. The longer it ages in a whiskey barrel, the smoother and more flavorful it'll be. Typically, the older the whiskey, the better it is. That's why a 30-year-old bottle of a collection will be worth more than a 12-year-old bottle.
• Brand: The reputation of the brand also plays a huge role in a whiskey’s value. You’ll want to choose a bottle from a brand that collectors favor, such as Macallan, Singleton or Buffalo Trace.
• Whiskey-making Process: The quality of the whiskey is also important. This, in part, can be determined by the process with which the whiskey is made. You'll want to look at the quality of ingredients, how they're distilled and the types of casks they're aged in.

3 Most Common Ways to Invest in Whiskies

If you want to invest in the whiskey industry, you have several options to get started.

1. Whiskey Bottles

You can invest directly in whiskey by purchasing bottles from distilleries and retailers and holding onto them in hopes that they rise in value. If you're choosing this option, you'll want to research the best whiskey to invest in by understanding market trends, popular brands and styles of whiskeys.

2. Whiskey Barrels

You can also invest in full whiskey barrels. These investments are more expensive but will provide you with an entire barrel of the golden liquid. Typically you can buy a whiskey cask at bulk pricing, allowing value to rise with time. When you sell and the whiskey is bottled, you could get a large return on investment.

3. Whiskey Stocks and Funds

If you don't want to invest directly in whiskey bottles or barrels, you could add a whiskey stock or fund to your portfolio. Some distilleries have publicly traded stocks, such as Diageo of Johnnie Walker and Pernod Ricard of Jameson. You can also find funds that offer investors the chance to invest in a collection of whiskeys and other alcohol ETFs.

Tips for Investing in Whiskey

If you want to begin investing in whiskey, start by doing your research. Get an understanding of current market trends, popular styles of whiskey and their differences and major brands within the whiskey world. The more informed you are, the better you'll be equipped to select investment-grade whiskeys from less valuable bottles.

You'll also want to network with other whiskey collectors and experts. Attend events and join online groups to meet other whiskey investors. They'll be able to provide valuable insight as well as expand your buying and selling network.

Where to Invest In Whiskey

Obtaining whiskey bottles and barrels can be challenging for new investors. That's why platforms like Vinovest have made investing in whiskey much more accessible.

Invest in Liquid Gold

Whiskey is more than just golden in color; many investors also see it as a chance to make strong returns. Its historical performance speaks for itself. However, investing in whiskey is not without risk. Before purchasing a bottle or investing in a whiskey fund, ensure you do thorough research on the brand, bottle and the performance of similar investments. But if you do select a good bottle, you have the chance at strong returns for your portfolio.

Frequently Asked Questions