Whiskey investing is big news in 2024. The market is booming, with rare bottles selling for huge prices. Let’s look into the best whiskeys for investing this year.
The whiskey market hit over $60 billion in 2020 and is growing fast, at a 5.9% rate each year until 2027. For those wanting to invest in whiskey, the numbers look good. The Rare Whisky Apex 1000 Index has grown more than 416% from 2012 to 2022.
Private investors are making about 10% a year from whiskey investments. Some rare bottles are even making more. For example, the Bowmore 50 Year Old Single Malt Scotch Whisky’s price jumped 100.1% in just eight months.
Are you ready to check out the top 10 investment whiskeys of 2024? Let’s dive into this exciting market and find out which bottles could boost your investment.
Understanding the Whiskey Investment Landscape
The whiskey investment world is booming. It’s now worth nearly $70 billion and is expected to reach $125 billion by 2032. Investors are flocking to it, with 27% planning to invest in whiskey in the next three years. This makes it more popular than art, jewelry, and classic cars for luxury investments.
There are three main ways to invest in whiskey:
- Bottles: Rare whiskey bottle prices have surged 322% in the past decade. The record? A single malt sold for $2.8 million.
- Casks: Irish whiskey casks have shown over 10% annual returns over five years. Many prefer cask investments to bottles.
- Stocks and Funds: These offer exposure to the industry through public companies or specialized funds.
Collectible whiskey auctions are gaining popularity. Scotch leads as the top choice, followed by bourbon and Irish whiskey. Whiskey cask investment is seen as a way to diversify portfolios, offering potential risk mitigation during economic downturns. With its growing appeal, whiskey now makes up about 5% of a typical investment portfolio.
Why Whiskey Makes a Compelling Investment
Whiskey has become a top choice for investors, alongside gold and real estate. Its value has soared, with rare bottles increasing by 564% in the last ten years. This growth has made whiskey a hot topic for investors around the world.
The global whisky market is growing fast, expected to hit $84.5 billion by 2025. This rise in demand has boosted the trading of premium whiskeys. Investors who know the market well are seeing big returns.
Special edition whiskeys from famous distilleries are doing especially well, with returns of 15% a year. Some bottles have even sold for as much as £2.1 million at auctions. This shows the big profits possible in the whiskey market.
- Whisky cask investments offer long-term growth potential
- Age statement whiskies consistently increase in value
- Limited editions provide opportunities for high returns
- Global demand supports steady market growth
Investors like whiskey for its unique traits. It gets better with age and is seen as a “wasting asset,” which can help with taxes in some places. As more people see the value in whiskey, it’s becoming a key part of many investment plans.
Factors to Consider When Investing in Whiskey
When you think about investing in whiskey, you need to look at a few important things. Your budget is a big part of how you’ll invest. Whiskey can make money over time, making it great for those who can wait.
Knowing the brand is key to making good choices in whiskey. Famous brands like Glenfiddich have done very well, with some bottles from the 1950s selling for £830,000 in 2021. The Rare Whisky Icon 100 index has grown by over 400% since it started in 2013.
Doing your homework is crucial before you start investing in whiskey. Learn about how it’s made, what’s popular now, and what it tastes like. It’s also important to find a reliable seller to avoid scams.
- Decide between investing in bottles, casks, or stocks
- Consider the potential returns of each investment type
- Be aware of physical risks like breakage or consumption
Investing in whiskey casks can be interesting. A 53-gallon American whiskey cask costs $1,500 and can make about 266 bottles at $6 each. As whiskey gets older, it becomes more valuable and tastes better. In Scotland, owning casks has given people returns of 8% to 12% a year for decades.
But remember, whiskey investments can be risky because they’re not easy to sell. It’s important to think about the risks and rewards to make smart choices in whiskey.
Best Whiskey for Investment: Top Picks for 2024
Whiskey investment has grown a lot, with some bottles increasing in price by 586% from 2010 to 2020. Rare whiskey bottles are an interesting choice for those wanting to add variety to their investments.
In 2024, the best whiskey for investment includes different styles and regions. The Macallan 18 Year Old Sherry Oak is a solid pick, with its 25-year-old version having a perfect 100% liquidity score. Japanese whiskies like Yamazaki 18 Year Old have also done well, with the 25-year-old version now selling for over $10,000.
Limited editions and aged Scotch whiskies are exciting for investors. The Springbank 30 Year Old sells for at least $4 on the secondary market. The GlenDronach 50-Year-Old Highland Single Malt Scotch has sold for £40,000. New stars like Hibiki 17 Year Old have seen up to 30% annual growth since 2020.
When picking whiskey for investment, look at rarity, age, brand fame, and past sales. While past success doesn’t mean future gains, these picks show great potential for both whiskey lovers and investors.
The Macallan 18 Year Old Sherry Oak: A Reliable Investment
The Macallan 18 Year Old Sherry Oak is a key investment for whiskey lovers. It costs £450 per bottle and is known for steady returns with less risk. This whiskey gets its unique taste from being aged in sherry seasoned oak casks.
People looking to grow their whiskey collection often choose The Macallan. The 2016 release is a prime example, seeing its value jump from $874 to $1,339 in a year. This shows its great potential for making money in the premium whiskey market.
The Macallan is famous for its high quality. Only a tiny fraction of their casks are considered rare. This rarity makes them highly sought after, driving up prices. For example, a 81-year-old Macallan Scotch sold for £300,000 at auction, proving its worth as an investment.
Here are some key points to remember about The Macallan 18 Year Old Sherry Oak:
- It has a strong 43% ABV and is not chill-filtered or colored
- Prices vary from $370 to $15,000, depending on the vintage
- Older vintages like 1937, 1964, and 1966 are highly valuable
The Macallan 18 Year Old Sherry Oak is a solid choice for both new and experienced whiskey investors. Its consistent quality and the distillery’s strong reputation make it a reliable investment.
Pappy Van Winkle’s 23 Year Old: Bourbon’s Crown Jewel
Pappy Van Winkle’s 23 Year Old Family Reserve Bourbon is a rare whiskey gem. It’s released every year by Buffalo Trace Distillery. Bourbon lovers and investors can’t get enough of it.
This whiskey’s value is amazing. Its price at stores is between $300 and $400. But on the secondary market, it can sell for $8,000 or more. This makes it a great investment choice.
Pappy Van Winkle is rare and hard to find. Every fall, a limited number of bottles come out. This makes it highly sought after, pushing up its price. Investors can see big returns as the whiskey ages.
- Annual release by Buffalo Trace Distillery
- Retail price: $300-$400
- Secondary market value: $8,000+
- Limited availability drives demand
- Potential for significant appreciation over time
For those into rare whiskey, Pappy Van Winkle’s 23 Year Old is a dream. It’s known for its quality, limited supply, and strong market performance. It’s a top choice for whiskey investments.
Yamazaki 18 Year Old: Japanese Whisky Excellence
Yamazaki 18 Year Old is a top choice in Japanese whisky. It comes from the Yamazaki Distillery, founded in 1923 in Shimamoto, Osaka. This distillery was Japan’s first and has led the way in quality and skill.
This whisky has 43% alcohol and is aged for 18 years. It’s made from 100% malted barley and has a rich mahogany color. Its complex taste makes it a favorite among whiskey collectors. The price is usually $250, but it can go from $550 to $900 due to its popularity.
People love to buy Yamazaki 18 at whiskey auctions. It often costs between $1200 to $1400. You can find it online at Liquorama, Caskers, and Instacart for about $1000.
Yamazaki 18 is popular around the world, in over 35 countries. Its rarity and fame make it a top choice for whiskey lovers. If you’re looking for other investment options, consider Australian whisky.
- Established: 1923
- Location: Shimamoto, Osaka
- Type: 100% malted barley
- Age: 18 years
- ABV: 43%
Yamazaki 18 Year Old is a key example of Japan’s whisky excellence. Its steady demand and rising value make it a smart choice for whiskey investments.
Limited Edition Releases: Capitalizing on Exclusivity
Limited edition whiskey releases are a big deal for investors in the premium whiskey market. These rare bottles often increase in value because they’re hard to find. Brands like Michter’s and Laphroaig only put out a few bottles each year.
This scarcity makes these whiskeys highly sought after by collectors and investors. The chance to make a quick profit is big. For instance, Michter’s Celebration Sour Mash 2022 was very rare, with only 328 bottles made.
Blanton’s Barrel Char No 4 Special Release was even more exclusive, with just 832 bottles from four barrels. This scarcity quickly drives up prices in the market, making them good investments.
When looking at limited edition releases, consider these factors:
- Rarity: Fewer bottles mean higher potential value
- Brand reputation: Established distilleries often command higher prices
- Age statement: Older whiskies typically appreciate more over time
- Market demand: Growing interest in luxury goods in emerging can drive up prices
While limited editions can be profitable, it’s important to do your homework. Know the market trends well. Remember, being rare isn’t enough. Quality and brand reputation are just as crucial in the world of premium whiskey trading.
Aged Scotch Investments: Springbank and Glenfarclas
Springbank and Glenfarclas offer great potential for your whiskey investment. Springbank’s 12, 15, 18, and 21 Year Old whiskies are in high demand. They have seen returns of 12% to 19.25% each year, making them great for investors.
The 2020 release of Springbank 21 Year Old had a 26.04% return. This shows how valuable well-aged Scotch can be. The Glenfarclas 35 Year Old Warehouse Edition is another great choice for diversifying your investments. Its rarity and quality promise big long-term gains.
When thinking about whiskey investments, keep these points in mind:
- Age: Older whiskies usually cost more
- Rarity: Limited editions can quickly increase in value
- Brand reputation: Well-known distilleries tend to do well
- Market trends: Keep up with what’s popular in whiskey
Remember, whiskey investments need time. The Macallan Private Eye bottle went from £36 in 1996 to over £4,000 today. This shows the big potential for returns over time. Keep an eye on Springbank and Glenfarclas for good whiskey investments.
Emerging Stars: Hibiki 17 Year Old and GlenDronach
The whiskey investment scene is seeing new stars shine. Hibiki 17 Year Old Blended Whiskey and GlenDronach Highland Single Malt are top picks for investors. They are great choices for those looking to invest in whiskey.
Hibiki 17 Year Old has shown strong growth, with a 22.85% yearly increase. This Japanese blend is rare since production ended in 2018. It’s a smart choice for short to medium-term investment.
GlenDronach, from Scotland’s second-oldest distillery, is also making waves. Their 50-Year-Old Highland Single Malt Scotch is a standout. With only 198 bottles available, it’s a top pick for long-term investment.
Investors should keep an eye on:
- Hibiki 17 Year Old prices have soared tenfold since it was discontinued.
- GlenDronach has made some of the most valuable Scotch whiskies since 2016.
- Both brands offer unique investment chances because they are hard to find.
As the whiskey market grows, these emerging stars offer exciting investment opportunities. They are perfect for investors wanting to add premium spirits to their portfolios.
Strategies for Building a Diverse Whiskey Investment Portfolio
Creating a strong whiskey investment portfolio needs strategy and knowledge. The global whiskey market is expected to hit $84.5 billion by 2025. Investors are spreading their money across different types and places. They mix bottles and casks from well-known brands with new distilleries.
Rare whiskey has jumped in value by 564% in ten years, drawing in investors. Age statement whiskies go up by 12% each year. Limited edition releases from famous distilleries even see 15% growth annually. To make the most of these trends, mix Scotch, Bourbon, Japanese, and Irish whiskeys in your portfolio.
Looking into whiskey cask investment? Remember, a single barrel can fill up with 500 bottles of whiskey. Experts advise keeping barrels for two to three years for good returns. Keep up with market trends by going to auctions or using investment platforms. With the right strategy, a varied whiskey portfolio can bring quick profits and long-term growth.