The world of investing is becoming increasingly complicated. Options like Forex and stock trading seem simple on the surface, sure, but high-frequency trading, news events, and social-media-fueled market bubbles make even the most basic trades uncertain. Cryptocurrency comes with its own set of headaches, from high transaction fees, long wait times on transactions, and the sheer volume of altcoin options.
In lieu of these traditional options, people all over the world are turning to their hobbies for sources of investment. You’ll see people stockpile trading cards, obscure games and models, collectible figurines, and even whiskey. Whiskey has been a source of profit for savvy investors for years. Nowadays, modern tools and easy online shopping make it easier than ever to invest in whiskey and turn a profit. It’ll take a bit of research to get started, of course, but it’s well worth the effort. If you enjoy a lovely liquor now and then, you’ll have lots of fun growing a whiskey collection and auctioning off an old bottle every now and then for much, much more than you paid for it.
Drinking Your Investments
The biggest upside of investing in whiskey is the fact that it has intrinsic value to you. Smart investors start their collections by buying bottles of whiskey that they genuinely like. Sit on these bottles for a few years (storing them carefully, of course), and when the time is right, check the price. No profit? No problem – you can still crack open the bottle and share it with some friends. Sticking with bottles that you don’t mind drinking at sticker price ensures that there’s no disappointment.
The best part of this is that there’s a tremendous market for moderately aged whiskeys from even a few years back. Distillers are constantly changing their recipes over time, meaning that each year’s blends and single malts taste a bit different than the ones from a few years back. Try snagging a few bottles of a 12 or 15-year-old single malt you like and just wait. Over the next couple of years, check in on how the distillery’s doing and what changes, if any, are being made. If there’s a big change to the modern version of the malt, a new owner buys the distillery, or the distillery goes out of business, you’ve hit pay dirt. Wait until you feel the time is right and auction off your bottles for a huge profit.
No changes? No problem. Whiskey still tends to skyrocket in price over time. Check your favorite whiskey auction to see how your bottles are doing and make a decision about whether you should sell them, hang on to them for a bit longer, or just enjoy them yourself. Whiskey keeps evolving even after it’s bottled, so you’ll have a unique experience with one of your favorite malts.
Whiskey Auctions and Whiskey Clubs
If you’re serious about whiskey, there are two great sources of knowledge, incredible investments, and buyers in your area: whiskey auctions and whiskey clubs. Visit both frequently to make sure that you’re not missing out on wealth-making opportunities.
As an investor, whiskey auctions can be an incredible way to unload your collection when it’s time to sell. As you gain knowledge, however, they’ll become an even better place to buy. Whiskey auctions frequently let bottles (and kegs) go for a fraction of what they’re worth. If only a few people bid, the prices on these items will stay small, giving the buyer an incredible opportunity to turn a profit. Bidding conservatively on whiskeys can let you be the one to pick up these spirits at a steal. Learn the rules of your local auction, bid strategically, and be careful not to let your ego get in the way and start a bidding war. Stick to a maximum of 80% of what you think each bottle is worth and see what happens. At worst, you’ll get a feel for how much various whiskeys are worth to local collectors and investors.
Joining a whiskey club won’t necessarily have as fast or as obvious of a payoff. By attending tastings, getting to know the other members, and chatting a little bit about your investing hobby, you’ll build a network of connections that can prove incredibly valuable. Over time, you’ll be able to harvest valuable knowledge about whiskey, the whiskey industry, and price trends, allowing you to refine your investment strategy. You’ll also establish yourself as someone who will buy unopened bottles of good quality whiskey for a decent price. Your fellow club members will occasionally take you up on this, giving you an opportunity to buy at a convenient price. Equally importantly, you’ll connect with club members who might be interested in picking up a few bottles from your collection. Give them a fair quote – the transaction will benefit both of you and they’ll be sure to come back in the future.
The Best Way to Invest in Whiskey
With whiskey, age isn’t everything. It’s a tantalizing number, certainly, and it’s all too easy to get transfixed by older whiskeys. Older whiskeys tend to be tremendously expensive, sharply limiting your investment possibilities. It’s often cheaper to buy two 16-year old whiskeys than a single 21-year old malt from the same distillery. In many cases, buying younger whiskeys from different distilleries will give you better coverage and make it more likely that you’ll turn a profit. Think about your own ability to invest: the more money you have to play with, the more risk you can afford to take with a single bottle.
The best bottles to pick up are more unique bottlings. Odd blends, short-run whiskeys from independent bottlers, and first bottlings of a whiskey from a new distillery all tend to gain tremendous value over time. The trick here is to make sure that the whiskey is good first. In general, distilleries put out their best stuff for their first batch to make a good impression, but sometimes a whiskey is just bad. Taste a bottle or look around for community reviews before you take the plunge.
It’s worth noting that modern whiskey marketing very much plays up the ‘collectibility’ factor. Don’t get fooled. Many of the gimmicks that you’ll find in ‘collectible’ bottlings add no value to the whiskey. If someone tries to sell you a whiskey at higher than normal price for the brand, do your research. Having a little slip of paper that tells you which cask the whiskey came from or having a Glencairn glass in the box might not make it sell for more at auction.
Modern Options For The Modern Investor
Whiskey can be difficult to store, especially in bulk. These days, there are options for the smart investor that take all of the headache out of your hands. Whiskeyinvestdirect.com allows online buyers to invest in whiskey as it matures by selling shares of new make spirit as it’s placed in casks. Over time, the value of that spirit grows, attracting lucrative offers from other investors and industrial buyers. Eventually, the whiskey is sold, removed from the cask, and bottled. It’s a unique way to invest that requires no equipment and only a little bit of research. Whiskeyinvestdirect.com works with over 35 whiskey brands including Caol Ila, Glen Garioch, Tobermory, and Ardmore, giving you lots of choices for which spirit to invest in.
Invest In Whiskey For Fun And Profit
Building a whiskey collection can make an incredible profit. Any serious whiskey fan will tell you that they simply don’t make whiskeys like they used to. Picking up some quality modern spirits, shopping for deals at a local whiskey auction, and investing in rarer bottlings will give you a plethora of great whiskeys that you can sit on and wait. Over a shockingly short timespan, these bottles can appreciate in value, giving you the opportunity to realise a hefty profit. If you’re not looking to buy and sell physical bottles yourself, futures-style investing at sites like whiskeydirect.com can allow you to still earn money off of whiskey’s tendency to gain value as it ages. These investments might not be as safe or typical as normal stocks, but they’re a lot more fun and can be even more profitable. After a few years, not only will you have had plenty of opportunities for profit, you’ll also have a great collection that you can show off and even share with friends every once in a while.
As an alternative to the more tradition forms of investing, when you invest in Whiskey it’s like owning your own liquid Gold, with real potential. If you’re interested in learning about investing in real Gold as well, we’ve got you covered here, take a look