Whisky cask investment: How to invest safely and red flags to look out for
Since the 15th century, Scots have been distilling uisge beatha, the water of life, making it one of the country’s most popular products and exports. It’s grown into a multi-billion pound industry, with well over 100 distilleries in Scotland creating thousands of jobs.
As with any successful industry, other opportunities have presented themselves, and whisky investment is now considered by some as an alternative avenue to try to grow an investment – but one to go into with your eyes completely open.
As with any financial investment it pays to do your due diligence – and in fact, the Advertising Standards Authority keeps a very close eye on claims made in the field, to try to stop potential investors from falling for sales pitches which can over promise.
Multi-asset investment firm Hackstons, based in the Gherkin in London, strives to ensure investors have confidence in their products, as well as providing education that enables them to spot a scam when they see one. It helps people to invest in timepieces , art, luxury handbags, coins, wine and casks of Scotch whisky. With hundreds of 5-star Trustpilot reviews, it has worked hard for its reputation of being entirely transparent with clients, offering education and secure premium insurance. And with an iconic workplace, it is proud to stand tall in the whisky investment scene, offering sound advice and education.
Hackstons has shared some salient factors to look out for to help investors steer clear of potential scams.
Irrelevant or misleading data
A lot of organisations mention reports such as the Knight Frank Wealth Report to highlight the potential growth of the whisky industry, however most of this data correlates to whisky bottles, and not casks – two very different things, and as such use of this data can be misleading.
Hackstons endeavours to go above and beyond when it comes to the information that it shares, only using well-researched data that is relevant to the sector and opportunity.
Lack of person-to-person/face time
Many companies will not be keen for you to meet them or visit their office, which may be a sign that they are keeping a distance for a reason. Those that welcome you in are typically more likely to be an open and transparent organisation.
Hackstons actively encourages prospective clients to come and meet them in the office whenever they wish, as they understand its importance in building trust for their clients. Furthermore, Hackstons also organises a number of brilliant events every year, from whisky tasting evenings, to trips to Scottish distilleries, where it brings together clients so that they can share their experiences of the whisky investment journey and meet like-minded individuals.
Regulation … or lack of
This is an unregulated industry, and yet in spite of this, some companies will claim that they’re FCA regulated. According to Hackstons, this cannot be the case as the FCA doesn’t regulate whisky investment organisations.
Hackstons aims for total transparency and is forthright in informing its clients exactly why they, and all other whisky investment firms at that, are not regulated by the FCA , and include that disclaimer in all of their marketing materials and website. While the FCA doesn’t regulate these companies, there are in fact HMRC licences that are required to store and insure whisky casks, all of which are held by Hackstons, so their clients can have complete peace of mind when investing in this exciting, alternative asset.
This is paid for content on behalf of Hackstons, and does not necessarily reflect the views or advice of The Scotsman. As with any investment, readers are advised to research widely and do their own due diligence, as returns are not guaranteed and investments can go up as well as down.