It isn’t a surprise to see a huge number of investors getting into the world of cask whisky. After all, with inflation going through the roof, there aren’t many safe investments that one can make. Fortunately, cask whisky is indeed a safe and secure investment, and unlike other bank-based investments, cask whisky does not erode buying power!
Being a historically-proven investment that promises great returns and, more importantly, being completely free from capital gains taxes, you yourself may be interested in investing in cask whisky. But of course, just like any other investment, you need to be smart about what you actually invest in. In this case, you should be purchasing the right whisky cask.
Why Is Cask Whisky a Good Investment?
Cask whisky is an investment that you would want to invest in if you are looking for a safe investment. To begin with, cask whisky is a tangible asset rather than a bank-based investment. This makes it an ideal option for those looking for a safe investment.
With an average rate of return of 10-15% per year, it is a good investment to make. And because it is an investment without any capital gains taxes, it is an ideal choice for those looking to grow their wealth.
Unlike bank-based investments, cask whisky does not depreciate in value. In fact, the longer it is aged, the more valuable it becomes.
How Does Investing in Cask Whisky Work?
The way cask whisk investments works are extremely simple. All you need to do is to find a distillery that offers casks of whisky for sale. You can find one for sale on the internet, at whisky fairs, and even by word of mouth. Call up the distillery you have found, and tell them that you are interested in purchasing a cask. Once you have arrived at the distillery, you can discuss the cask that you want to purchase and then make the purchase.
The prices of the casks vary depending on the length of the aging period, the type of cask, and the type of whisky. You will have to pay for the cask in cash, and you should be able to take it home with you, provided that you don’t live too far away from the distillery.
You can hire an expert to help you pick the ideal cask, and once you have purchased one, you can store it in your home or even lend it to a distillery at a later date. The longer the cask is stored, the more expensive it becomes. And if you get a cask that was used for a high-end whisky, the amount of money you get back will be even greater.
How Do I Buy My First Cask Whisky?
When it comes to buying cask whisky, not all options are made equal. Some are just better than others. Additionally, there are mistakes you can make along the way that may put your investment in peril. Here are some tips to ensure your cask whisky experience is a good one:
1. Look for the Right Price
One big problem when looking to invest in cask whisky is that, unlike gold or a couple of other investments, it is a huge challenge to identify a particular cask whisky’s actual value. That’s because there’s next to no live market price for each cask, leading to the lack of transparency.
However, this does not mean that you cannot figure out the value of the cask whisky you want to invest in. In fact, a good way to identify the real market value of cask whisky is to reach out to the distillery and check if they sell casks to the public. From here, you can see the prices they’re being sold for. That’s a good marker for the actual value of the whisky cask, as that’s what people are paying for to get whisky.
2. Ensure You Have Full Ownership of Your Casks
One nightmare that many new whisky investors often find themselves in is that when the company they’ve bought from is going bust, the cask whisky that the investors thought they owned gets liquidated to save the company. Why does this happen? Well, it’s because the investors did not make sure that they were the registered owners of the casks!
In other words, when investing in cask whisky, make sure that you are registered to the cask and that you have full ownership. So, be sure to contact the government bonded warehouse where your casks are busy maturing. If you can confirm that you are the owner of the stock, you can rest easy your whisky won’t go with the company going bust.
3. Always Be Wary of Guaranteed Returns
While almost all cask whisky investments will guarantee returns, it is important to stay away from those that offer top-notch returns. This isn’t to say that you should completely dismiss guaranteed-returns cask whisky investments, but you should be slightly wary.
The key problem with these sorts of investments is that they have a tendency to lead to unhealthy competition from others in the same industry. This is bad for the industry as a whole, leading to the industry being driven to its knees. And also, these too-good-to-be-true offerings are sometimes exactly that! So, avoid getting scammed out of your money and always be sceptical about high guaranteed returns.
4. Investing in a Distillery You Know Is Wise
Finally, when you’re buying cask whisky, make sure you invest in a distillery that you know is going to be around for a long time. This will ensure that you never have to worry about losing your investment because the company you invested in went bankrupt before the cask was ready.
Cask whisky is a sound investment. It offers you the chance to grow your wealth or to recoup losses at the rate of 10-15% per annum, which is amazing by many standards. However, it is imperative that you know what you are doing before you decide to invest in cask whisky. So, take the time to understand how you can invest in the right cask whisky, and make sure to apply the tips we’ve shared today. Additionally, feel free to reach out to expert investors who have experience in the matter, as they can give you pieces of advice that will aid you in your cask whisky investments.
Cru Wine makes buying wine simple and easy through an enriched experience. If you are looking to buy whisky for investment, get in touch with us today!