Past and Present
Is whisky the new safe haven for investors?
Global markets have suffered huge losses and as the COVID-19 epidemic continues, assets across the investment spectrum have depreciated ahead of what is likely to be a global recession.
A word from the managing director of Cask Trade and Auction Your Cask:
Simon Aron says casks of whisky are fast becoming the investment choice for people looking for an alternative that is less uncertain. “Whisky is one of the only assets that appreciates the older it gets. It is still completely detached to financial markets, which makes it a safe haven for investors.”
“Asia has really woken up to whisky. Especially since the economy in Hong Kong, Singapore and China gets back to some sense of normality,” says Simon. “Our new Asian customers are very enterprising. They have a love of whisky so they keep some, bottle some of the casks they are buying and generally trade others. They enjoy our keener prices and transparent way of business, as well as our excellent stock (at Cask Trade) which I believe is the best in the world.”
Whisky on the rise
In the last 10 years, whisky has far outstripped the more established alternative assets such as art, cars, wines, watches and jewellery and is now one of the most coveted objects of desire. In 2019, whisky was one of the top performing luxury investments.
Results of The Knight Frank Wealth Report’s new unique luxury investment index reveals whisky was one of the most coveted objects of desire.
The report says Rare Whisky has grown in value the most over the last 10 years at +564% and increased by +5% in the past 12 months; and states casks remained in huge demand. By comparison cars have seen an increase of 194%, art by 141% and wine by 120%.
"I have received calls from hedge fund managers in New York looking for financial modelling on large portfolios of cask whisky." Says Simon, and adds: “Through any economic downturn alcohol sales remain constant and even go up.”
Don't forget to keep an eye out for the upcoming auction, 14 August 2020, and if you are looking to auction some of your own casks do not hesitate to get in touch with us!