
If you can afford to have your capital tied up for 10+ years then yes, buying a cask of whisky can be worthwhile and rewarding. At Mark Littler LTD we offer free and 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. As a tangible alternative asset it offers the chance for both experience and returns over the long term.
Returns on whisky casks have historically been positive because the value of whisky tends to go up with age. There is no indication that this trend would change. On the contrary, the whisky market continues to expand due to a growing international demand.
Why Does Whisky Increase In Value?
- 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 12 years old. By the time a cask exceeds 12 years old around 90% of the casks filled at the same time will have been used (because the majority of whisky is used in blends and most blends are 12 or younger). 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. Between 1% and 4% 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 can be an 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 tie up that money for 10 to 20 years? A whisky cask is a long-term project, especially if you are looking at it as an investment. We do not suggest casks as an investment unless you are comfortable with a minimum ten year investment. It’s also worth noting that while casks of whisky are easy to sell, selling a cask is not a quick process. If you might need the money within a ten year timeframe, or might need it quickly when you do come to exit, 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. Enjoying whisky as a drink can add 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 as a general exit strategy) 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 scotch 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 below, which includes everything you need to know about buying a cask of whisky.