If you’re new to whisky, you may be wondering what to do in order to gain huge profits from your investment. It is necessary to ensure our investment to fly as quickly as your favorite drink and not the other way around.
In order to help investors make sense of the world of whisky cask investment, here are important questions you need to know.
How To Ensure You Don’t Overpay?
In all honesty, a lot of variety exists. We have tasted and priced barrels just a hundred meters apart while utilizing the same rye, water, salt, air, etc. No two automobiles, paintings, or houses are the same, and the same holds true here. However, the market values barrels based on the amount of alcohol they contain. Regardless of who you purchase from, whether a single individual or a business, ensure that the pricing is the same. Therefore, as an uneducated person, you must first devote a great deal of effort to this.
How Much Potential Gain Is There For Whisky Investment?
Casks are unique, and as a general rule, the longer you hold on to one, the more money you’ll make. If you purchase it between the ages of five and eight years and sell it around twelve, you may anticipate a yearly return of between 8% and 11% in pounds. There are additional expenses associated with some considerations. It will cost an additional £30 per year to store in a warehouse and must be insured. It’s not much, perhaps £100.
Additionally, it must be periodically examined. Someone then opens it, analyzes it, and charges you £100. I want this job. Can you imagine?
Basically, let us address two questions: whether or not people should insure their whiskey barrel and whether or not to sell at a certain point. The question, therefore, becomes how to safeguard yourself against would-be con artists who target casks.
Apparently, some businesses in Spain and Italy will sell (just about) everything. Rumor has it that certain companies in Hong Kong will pay twice as much for a bottle of whisky as they would in the rest of the world. Therefore, seek a company with a good reputation; study them up.
Are they working in a nation where this whisky is produced?
Do they have a bonded warehouse license, often known as a Wowgr (Warehousekeepers and Owners of Warehoused Goods Regulations)?
And do they inform you of the location of the cask? Are they providing you with a picture? Are you equipped with cask numbers and contents? And do they provide you with referrals?
Great fun, but it’s a product you retain for a long time, so you must be 100 percent certain that it exists.
Frequent Problems That Prevent Casks From Being Profitable Investments
This is not a scheme to make a fast buck. Within six months, customers say, “I’d want to come into it,” and “I want to depart out.” No, you can’t. You should retain it for at least five years. As a matter of fact, its shelf life is short. Therefore, you should place it in glass and take care of it for the next 30–35 years at most. Consequently, it has to be evaluated often.
Several international businesses we employ approach bottlers directly, while others utilize auctions. Here’s an example: right now, an auction is taking place. You go up to a barrel and announce, “Here’s my price—very little.” Only if the price reaches that threshold will it be sold. In these cases, we collect a fee from the purchaser and provide no compensation to the seller.
We also run a several thousand-strong communication group where we sometimes post a cask and give it away. It may interest you that whisky is a popular drink in South Africa.
Right now, you’ll need at least a month to complete the necessary documentation and funds transfer. Once payment is paid, ownership is transferred.
