Words by Mark Biss, founder and CEO of London Cask Traders – the London based whisky experts guiding you on your whisky investment journey.
Investing is often a minefield for new investors, with tons of conflicting information online and new investments every year, it is often difficult for investors to find safe, secure assets they can trust.
The most common investment avenues include property, stock markets, or shares in companies. However, in recent years, these traditional investment opportunities are seen as more of a gamble than a certified growth prospect. This is because the current global financial state of affairs isn’t in a healthy or reliable place. Market values have seen drastic decreases, and economies have shrunk exponentially – especially over the past two years.
A popular investment opportunity of 2021 was investing in NFTs. The problem is that as a digital asset, the value of various NFTs fluctuate greatly and the lack of transparency in the market leaves investors vulnerable and susceptible to being tricked or conned. This makes the industry a fickle one to invest in.
In fact, consumer confidence has been waning in the NFT market so much so that NFT investing has seen a steady decline in participants since the beginning of 2022. The number of daily NFTs sold has declined by almost 90 per cent from $6 billion to $850 million in the past 10 months alone.
Investors are also losing confidence in bank based investments, with the average interest rate of a cash ISA sitting at only 0.3 per cent per annum in 2022. The stock market has also proven to be incredibly turbulent over the past few years, and investors have also been incredibly nervous of an impending housing market crash, putting many investors off investing in property.
Seeing as now isn’t the time to invest in real estate, cryptocurrency, or the conventional stock market, what options do we have to grow our money wisely?
Have you heard of cask whisky investing?
The always-relevant investment alternative
Privately purchasing casks of whisky is an activity that’s been around for almost as long as the art of distilling itself. However, the opportunity to invest in whisky is a fairly new phenomenon. One of the main reasons for this has to do with the increase in availability of Single Malt Scotch in the 1980s. Another relevant factor is the continued growth of whisky as a hobby that started to surge in the 21st Century.
The whisky bottle market is rather easy to invest in, despite the rarity of collectables. One could enter through a specialist store, buying through auctions, from private owners, or through one of the ballots held for rare bottlings on launch days. But when it comes to whisky casks, it is highly advised that you embark on your investment journey with a reputable company in the sector.
Whisky bottles and whisky casks
What’s the difference?
The biggest difference between these two whisky investment opportunities is that the liquid in a bottle does not continue to age or mature. This means that a 12-year-old bottle of whisky will remain a 12-year-old bottle even if unopened for another 12. And so, the only way a bottle of whisky can increase in value is if supply reduces – either from being discontinued, or through limited edition bottling.
Investing in whisky bottles also requires investors to handle many moving parts. From financial demands and time constraints, to logistical challenges and even storage space – investing in bottles of whisky typically carries far fewer benefits than investing in whisky casks.
Whisky casks are where whisky investment is at its most simple – and profitable.
Whisky cask liquid is often purchased at a much younger age, and therefore at a much younger price than fully matured whisky. In some instances, liquid may even be purchased as new to make the spirit from scratch. Investing in cask whisky is a match made in heaven because the liquid gold only gets better over time. This means that the longer you hold on to your cask investment, the better it will taste – and the more valuable it will become.
Whisky sells best at what are known as ‘milestone ages’. These are 12, 15, 18, 21, and 25 years old. For this reason, it would be wise to factor this into your exit strategy when choosing to invest in whisky casks. A short term investment could thus look like holding an eight-year-old cask for four or seven years until the cask is either 15 or 18 respectively. And in this setup, your whisky would be maturing and appreciating in value during these years.
The issue with cask whisky investments
Let’s take a look at legitimacy
There is a global demand for whisky no matter the state of the economy. When people are thriving, it’s a commodity. When they’re struggling, it’s a crutch. So, as a proven asset, whisky isn’t just valuable – it’s known to be recession-proof too, classed as a ‘safe haven’ investment by shrewd investors.
But you can’t just get into investing in cask whisky over the weekend. You need to educate yourself on the market, and find a suitable and reputable whisky investment company to invest through.
As straightforward as it may seem to supply liquid in a barrel and see reliable returns, there are countless cask whisky wholesalers who sell their clients more dreams than investment opportunities. If you’re interested in cask whisky investments, you need to confirm you’re getting quality liquid while ensuring operational costs don’t override your returns.
Be careful of certain cask whisky investment companies who are quick to make bold claims through high-level language, but have little to no verifiable facts or accolades to live up to. A quick Google will reveal no shortage of cask whisky investment companies, but most lack the knowledge or passion to help their clients understand where to invest their money – let alone how to do so properly though cask whisky.
Are there any cask whisky investment companies you can trust?
What to look for in a cask whisky investment advisor
First and foremost, you need to find a company who loves the amber liquid just as much as you do, if not, more. Having a passion for whisky means that any advice these companies would be giving you is advice they would take themselves. After all, if you see massive returns on your cask whisky investment, you’d want to share your success with the people who helped you get there (over a glass of whisky you know they’ll appreciate).
Secondly, you want your investment advisor to have noteworthy partnerships with reputable distilleries around the world. In terms of whisky, name brands boast better results. Take, for example, a cask of Middleton whisky compared to Redbreast. Although both casks are distilled in the same factories, and aged in the same barrels, for the same amount of time, in the same warehouses – because of the name – Middleton sells for 10 times more than Redbreast. So, while the quality of whisky is identical, finding a whisky investment advisor with impressive industry connections is something to consider.
Is London Cask Traders legit?
A name you’ve probably heard of if you want to invest in cask whisky
If you’ve been contemplating cask whisky investing, chances are, there are several names in the business that keep coming up. Some of them for good reasons, and others to avoid. One company that provides results for their clients thanks to their long-standing, established industry connections is London Cask Traders.
Having the right connections is just as important as getting the right advice and information on the whisky market. London Cask Traders helps their clients connect with valuable casks that have the highest growth potential possible. London Cask Traders has robust and reliable relationships with dozens of distilleries, storage providers, bottlers, and brokers.
So, is London Cask Traders legit?
Well, if you’re searching for a whisky investment advisor who can secure you strong returns, portfolio diversification, and tax free gains – then yes – they’re legit. If you choose to invest in cask whisky through London Cask Traders, you’ll gain access to a vast network of cask sources. This means you’ll be able to access the best cask whisky deals at the most competitive prices. All of this to ensure that when the time comes you’re ready to exit, you’ll be likely to make between 12-20 per cent per annum in capital appreciation.
The average return on cask whisky investments over the past five years has consistently been around 12.5%. But because more popular whisky distilleries yield higher rates, choosing to invest in cask whisky with London Cask Traders could see your investment returns reach near 20 per cent per annum (depending on how long you’re willing to wait).
A review of London Cask Traders
Accolades and aspects to pay attention to
London Cask Traders won’t just put you in touch with a handful of distilleries and leave you to your own devices. In fact, they are connected to and in constant communication with over 100 distilleries worldwide. This allows London Cask Traders to find their clients the best cask whisky investment deals set to reap the most returns rewards.
On top of this, London Cask Traders promises access to an all-encompassing cask whisky investment team. These experts are committed to their clients, and they deliver advice, guidance, and support at every step of the way. They will help ensure that your capital is protected no matter the economic state of the world.
Through a review of London Cask Traders, it was found that all employees who form a part of their cask whisky investment advisor team complete their Diploma in whisky before being allowed to interact with any clients. This means that all advice clients receive is educated and informed by industry and business research.
London Cask Traders also works closely with their clients to help safeguard their exit strategies. From your first enquiry, London Cask Traders works hard to understand your investment goals and how they can help you achieve them. They will then advise you on which distilleries to consider, suggest an investment period that matches milestone ages, and ensure that your returns either match or exceed the industry standard.
Make an informed investment for your future
Why London Cask Traders is the company to choose
The great thing about investing in cask whisky is that you can’t fake or forge a whisky cask. Restrictions put in place by the Scottish government require casks to be held in government-bonded warehouses. Once the whisky has completed its maturation period, you are guaranteed that every bottle of whisky made from your cask will be 100% Scottish whisky.
London Cask Traders therefore offers low risk, high reward partnerships. Other than being guaranteed that your cask whisky investment is the real Scottish deal, it’s also easy for you to sell at any point that you need to. London Cask Traders grants their clients access to secondary markets filled with eager buyers thirsty for your liquid gold.
Arguably the most beneficial advantage of working with London Cask Traders is that your competitive edge will be a personal one. When you place your money in an investment opportunity of any kind, you want the certainty that those handling your hard-earned cash are doing so with the most industry knowledge and passion possible.
The London Cask Traders team are the types of people you won’t only be comparing different investment avenues and opportunities with. You can also expect to discuss notes, favourite brands, and whisky-related memories.
Visit London Cask Traders’ website today
And make an informed investment decision tomorrow
If you’ve been looking for a review of London Cask Traders, this is only the first page of the book. To delve into all that London Cask Traders can help you with on your cask whisky investment journey, give their website a visit. You’ll discover pages of explanations and downloadable links to help make your entire process as smooth and as sweet as you should expect.
