A Single Bottle Of Macallan Scotch From 1926 Fetched Over $1 Million At Auction

Luxury goods auctioneer Sotheby's sold a rare bottle of The Macallan scotch whisky in 2019, which fetched over $1 million when the hammer fell on the final bid. 

Scotch aficionados are famous for their willingness to pay hundreds or even thousands of dollars for a bottle of their favorite dram, but $1 million? The story of what makes this bottle so special starts with its age.

Scotch is similar to wine in that the year it was made goes a long way toward determining its value. In the case of scotch, every year it is aged in a barrel before bottling adds flavor, smoothness and complexity to the final product. It also adds to the price.

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A good bottle of The Macallan you might give to a friend around the holidays may be between 15 and 30 years old, the one on auction was distilled in 1926. It was then aged in its barrel until 1986 when only 40 bottles were made. That means it was aged for 60 years. Adding to the value is the fact that none of the 40 bottles were made available for sale.

Macallan has long been one of the most respected names in scotch, and its everyday bottle of 15-year-old scotch sells for between $60 and $75. Just like Mercedes has the AMG line that represents a step up from its already high standards, Macallan has its "rare and fine" label.

Only 14 of the original 40 bottles of the 1926 edition wear that label, and the bottle up for auction is one of them. Another thing that makes the bottle so special is that it was "reconditioned" by The Macallan Distillery. That means it was certified in terms of authenticity and the distiller replaced its cork and the label. It is the first such bottle to be reconditioned in this fashion.

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The same fundamentals that are driving the price of this bottle of Macallan 1926 past $1 million are in play for everyday scotch whisky. Global demand has been increasing, but the available supply has not kept pace for two important reasons. First, scotch whisky can only be made in Scotland. Second, the whisky must age for a minimum of three years before it can legally be designated as scotch.

Most dedicated scotch drinkers want the oldest scotch they can afford, which is somewhere around 7 or 8 years old. Older, more sought-after bottles can go from 10 years up to 30. They feature their age prominently on the label and generally, the older a scotch is, the more it costs.

Scotch drinkers, like wine enthusiasts, are obsessed with having the very best they can afford. The fact that most of Scotland's distilleries are operating at, or near full capacity has led to an increase in the price of everyday scotch. This has precipitated an even bigger spike in demand for ultra-rare bottles like Macallan's 1926.

Investors are always looking for new opportunities, and whenever a commodity begins fetching seven figures at auction, they take notice. Like fine wine, scotch has become an alternative investment opportunity and a potential hedge against inflation. That's because the supply isn't getting any bigger, and the demand only seems to be growing. It's probably just as likely that the winning bidder will be a scotch enthusiast or an investor. 

The good news is you don't have to bid $1 million to get in on the action. Vint is an online investment platform that allows investors to buy individual shares of wine and whisky collections curated by highly respected experts. They offer Securities and Exchange Commission-qualified offerings at prices as low as $100 per share. 

Many of their offerings are eligible for individual retirement account (IRA) or self-directed IRA contributions. Bear in mind that even though whisky and wine market fundamentals are strong, there is always a risk of loss with every investment. With that said, buying shares of wine and whisky collections could be a great way to diversify your portfolio.  

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