Is it worth buying a cask of whisky?
If you can afford to have your capital tied up for 10+ years then yes, buying a cask of whisky is worthwhile and rewarding.
At Mark Littler Ltd. We can offer, free independent guidance on buying a cask of whisky. So you can decide if it’s right for you.
Should I buy a whisky cask?
Whisky is a long-term investment and one that can be rewarding as an experience and as an investment when it is done properly.
Returns on whisky have historically been positive and there is no indication that this would change. On the contrary, the whisky market continues to expand due to a growing international demand. In addition, whisky naturally increases in value with age for 3 key reasons.
Why does whisky go up in value with age?
- There is an increase in the quality of single malt whisky as it ages. Due to interactions with the cask and atmosphere, single malt whisky is seen to increase in quality as it matures, adding layers of flavour and complexity to the spirit and increasing the smoothness. You cannot substitute for time in the whisky industry, and so an older cask will always be valuable.
- There is a dramatic increase in scarcity once casks reach more than 10 years old. By the time a cask exceeds 10 years old around 90% of the casks filled at the same time will have been used. This scarcity means the value of the remaining <10% goes up, and will continue to go up as the remaining proportion decreases.
- The angel’s take their share each year. Around 2% of a cask’s contents is lost each year to evaporation and absorption by the casks itself – known as the angel’s share. That means that older casks have less whisky in them, and once again, scarcity = an increase in value.
Is it worth buying a whisky cask?
Buying a whisky cask should be a rewarding experience as well as a potential investment. Buying a cask of whisky with Mark Littler comes with a whole selection of added extras, including the chance to visit your cask, draw bottles (if you would like) and generally enjoy the whole experience of owning a cask of whisky.
If you’re looking for a potential investment that offers more than just numbers on a page then a whisky cask is certainly a worthwhile purchase. Here are a few things to consider before you buy a cask of whisky.
Is a whisky cask the right investment for me?
- Can you afford to leave that money for 10 – 20 years? A whisky cask is a long-term project, especially if you are looking at it as an investment. Casks of whisky are easy to sell, but selling a cask is not a quick process, so if you might need the money within that timeframe, or might need it quickly, then another type of investment might be more suited to you.
- Do you need to like whisky to own a cask? Liking the odd dram of whisky isn’t a pre-requisite for owning a cask, it adds value to the experience, but whisky casks aren’t just for whisky enthusiasts. Don’t know your Speyside from your Islay? that is fine, we can advise you on the right cask for you and your budget.
- Do you understand the costs and potential taxes involved? Like any investment, it is important that you understand everything involved in buying a cask of whisky. For example, do you know your expected storage and insurance costs? If you are thinking of bottling your cask (not something we personally recommend) then are you aware of the taxes, costs and licences needed to do so? If not, don’t worry, we have a free guide to owning a cask.
That’s it, as long as the money you are putting into the cask can be spared for the full term of the investment and you have done your research there is no reason not to buy a cask of whisky.
At Mark Littler Ltd. we specialise in the sale of young whisky casks as a long-term investment. If you’re interested in learning more about investing in whisky you can sign up for our Free Cask Buying Guide, which includes everything you need to know about buying a cask of whisky.
We look forward to welcoming you to the world of cask ownership.
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