Whisky investors cheered by rise in values
Recent figures suggest it might be best to invest in whisky, rather than drink it. Picture: PA
CAREFUL with that dram – it might be better off left in the bottle, as Scotch whisky is now outperforming traditional investments, including the stock market and gold.
Figures from investment firm Whisky Highland show that some portfolios’ value has risen by almost 300 per cent in the last year.
Three-year figures reveal that an investment in the 100 best-performing whiskies in 2008 would have risen by 163 per cent in 2011, while gold – which has soared due to the recession – rose 146 per cent. Diamonds rose by just 10 per cent, while shares and crude oil stock values fell.
Arthur Motley, buyer at Royal Mile Whiskies, said: “Collectors used to be interested in whisky as a drink and wanted a good bottle as part of their collection. Increasingly, people are buying as they see prices rising on eBay or at auctions. It is simply seen as an investment.”
Former banker Andy Simpson, who founded Whisky Highland after leaving Bank of Scotland, said investors are only just starting to become aware of the value of whisky.
“It is expanding quite rapidly,” he said. “A few years ago, you might have seen the odd bottle tagged on the end of a wine auction. Now there are a lot of specific whisky auctions held all over the country.”
A total of 8,500 bottles of single malt – the most valuable form – were last year sold at auction, compared to 1,500 four years ago. The value of the auction market is estimated at £3.6 million and expected to rise to £17m by 2020.
Worldwide, investor and collector bottle retail sales are thought to total 85,000 – worth £44 million a year. The most expensive bottle of whisky so far is a bottle of limited-edition Dalmore, bought last year for £135,000 by a Chinese businessman in Singapore.
Another high-performing investment bottle, the Glenfiddich Foundation Reserve, went on sale in a limited-edition 500 bottle run last May for £50 and is now worth about £250.
David Robertson, Dalmore’s rare whiskies director, said: “People see whisky as an asset and with stocks and shares being so tough and interest from bank accounts so low, investors have been starting to look for other opportunities.”
Robertson said Dalmore regularly received calls – including from investors and whisky retailers in Asia and Africa – enquiring about specific bottles.
Mahesh Patel, 45, a British civil engineer who lives and works in the US, began collecting in his early 20s.
“My first serious bottles were bought 20 years ago on the Royal Mile – a Black Bowmore and an Ardbeg Provenance – which cost about £200 and are probably worth about £4,000 to £5,000 now. I have about 2,500 to 3,000 bottles, but I like to see it as quality, not quantity. My family used to think it was a mad obsession. Now they can see the benefit.”
Email to a friend
Print this page- Alan Pattullo: Dignity, not sanctimony, is required at Parkhead
- 300 jobs at risk as Ryanair axes five Edinburgh routes
- Suzanne Pilley trial: I kissed her goodbye then never saw her again, says would-be lover
- Rangers administration: Craig Whyte’s promise to step aside and hand Rangers over to fans ‘ludicrous’
- David Cameron is playing into the SNP’s hands, says Michael Forsyth
- Scottish independence: Spectre of border controls raised by top Tory
- David Cameron is playing into the SNP’s hands, says Michael Forsyth
- Scottish independence: Alex Salmond hits back at Tory ‘Bourbons’ in battle over devo-max
- Scottish independence: Anti-Scottish jibes boost separation, Michael Gove warns Right
- Scottish independence: Let Scotland vote on independence in 19 months, says Michael Moore
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Edinburgh
Thursday 23 February 2012
Today
Light rain
Temperature: 7 C to 14 C
Wind Speed: 26 mph
Wind direction: South west
Tomorrow
Sunny spells
Temperature: 5 C to 10 C
Wind Speed: 29 mph
Wind direction: West
Comments
There are 17 comments to this article
Page 1 of 2
Galloway gal
Thursday, February 2, 2012 at 09:15 AMHate whisky, makes me sneeze. But an interesting article. I have a friend who has a whisky collection, fascinating collection to look at. He will be happy at this story.
duelaynomore
Monday, January 30, 2012 at 12:33 AMIt seems that for some people, no one can have any opinion, unless it agrees with theirs. Then they revert to name calling and personal insults. ..................................Do you have an opinion on the article in question?.......................................In this case, of whisky "returns on investment", all I can say is that it is, at least a "liquid investment". .......................................Mr Sal..and Co will of course want their cut after their revolution.
Canyonero
Sunday, January 29, 2012 at 05:16 PM@ Charles Linskaill. I've seen your name pop up on a number of stories on this site. Do you just hate everything that is pro-Scottish? You are a fool. Although keep the posts coming, they are very entertaining.
bauldintheheid
Sunday, January 29, 2012 at 05:06 PMGood article and Andy Simpson is doing much to promote collecting single malt whisky as an investment, but there are drawbacks. To the ordinary man or woman in the street its not all plain sailing. Auctioneers don't do anything for nothing adding 15, 20, or even 25% to the hammer price to both buyer and seller. Then there is 20% VAT on their charges. Do your sums someone's doing well but is it the Collector? Buy a bottle for £100 but you pay £124 with 20% uplift. Keep for 5 years and sell for £200 but you get only £152. The bottle doubles the Auctioneer gets £60 the VAT man £12 and you £26 or about 5% a year. Yes you can add value to a whisky portfolio, but like stocks and shares some increase and others don't. As demand increases limited editions seem more difficult to get for some. One recent Highland Park and a Macallan sold out almost immediately and Aldi's 40 year old similarly. If you don't have an Aldi or a connection Tough!! Who can afford 3500 bottles but the moderate investor if you are careful and keep for a few years you should get a return bigger than the banks are offering, but it will be modest, and it is an interesting hobby. Don't however be mesmerised by quick profits, some of mine haven't increased more than a £1 or £2 over 20 years, and whisky although doing well just now has collapsed in the past just see how many distilleries closed between 18385.
knapper
Sunday, January 29, 2012 at 02:45 PMAnd of coarse if all else fals you can drown your sorrows when the price crashes, if you have it hidden under your bed.
Tarheel Chief
Sunday, January 29, 2012 at 01:36 PMCalifornia wine makers bless the Chinese for it the demand from China is enormous since there own production remains poor at best,horse urine at worst. Scotland may be see the benefits of Chinese drinkers who really need a good drink and who know how much Scotch the Japanese drink with no ill effects. Let us hope the quality of Scotch remains a top priority in this very difficult and demanding market. The other great demand center is Dubai.It would be interesting to see how much Scotch goes into Dubai since none is allowed in Saudi Arabia.
busbyfth
Sunday, January 29, 2012 at 01:16 PMLinskaill..........I've voted SNP for many years now - but that has stopped......This party has shown that with enough powers, they will enforce Draconian alcohol bills as soon as possible. they have more than a hint of "wee frees" about them (wait for drink being outlawed on trains VERY soon) Bozel is only the tip of the iceberg for a party that could very well go down a hard line route - one that I most certainly do NOT intend to vote for any longer........Trouble is - on the other hand - when the oil~gas runs out there will then be a referendum in which the English WILL vote us out the UK (no longer any use to them) when there are no resources left for Scotland to fund it's future.....What a bloody quandry - Go now while we have funds available (into the hands of potential radicals) - OR wait around to be cut loose when there are little funds left?
busbyfth
Sunday, January 29, 2012 at 01:07 PM# 9.....Ah - so it is Irish whiskEy you refer to.....
John Loftus
Sunday, January 29, 2012 at 11:13 AMMust be a bunch of party pooping knuckleheads.A good whiskey is for drinking.Tae hell wae goin tae wan o' their hooses for Hogmannay!!!!!
e2toe4
Sunday, January 29, 2012 at 11:11 AMGreat investment opportunity says ex banker involved in selling the investment- where have we seen that before? ++++++++++ +++++++++ Usually the great investment opportunity arises before the 160% rise...then it is publicised to draw in the mug money ahead of the bubble's deflation. +++++ ++++++++ ++++++ The fact is huge numbers of assets are increasing in value because the price of money is so low, the government (here, the US, and eventually in the EZ) are printing more of it (in effect through more QE) and interest rates paid on cash on deposit, are negative in respect of inflation--so the sight of people taking take their savings in wheelbarrows to buy 'anything' isn't a surprise; certainly not to the authorities who, having realised that debt fuelled spending can't happen anymore, switched in 09 to liquidating our savings for us by making it the stupid option to save prudently, in order the consumer carousel can be kept turning for a year or two more...... .
Hector the Lessor
Sunday, January 29, 2012 at 08:12 AMI would imagine that it would be a tremendous investment, if you could put it somewhere safe for maybe ten or twenty year periods. However it should be remembered that whisky improves in the cask and not in the bottle, I only mention this in case some folk would put away maybe a few crates of Asda's finest.
Swiss Toni
Sunday, January 29, 2012 at 08:11 AMI have just goggled Charles Linskaill and looked at his Facebook site – says it all for me!! Please seek help Charles. Your delusions on the matter of alcohol seem to be getting worse
Swiss Toni
Sunday, January 29, 2012 at 08:06 AMI have just googled Charles Linskaill and looked at his Facebook site – says it all for me!! Please seek help Charles. Your delusions on the matter of alcohol seem to be getting worse
Charles Linskaill
Sunday, January 29, 2012 at 02:31 AMFunny!, The Certainly Is, If Scotland decides to vote for Independence, There is Nothing More Certain, That our Scottish Government Will Destroy our Scottish Whisky Industry, Because of their more than,,Deluded Ways of taxing everything that makes money, The Fools They Are!
antiparasite
Sunday, January 29, 2012 at 01:56 AMDrug barons or business men??
Page 1 of 2
Your view
Please sign in to be able to comment on this story.