How to Invest in Whisky

Written by Colin Hampden-White

The king is just about hanging onto the crown, but it is closer than it has been for many months. Macallan has risen a little and Springbank remains strong. As predicted, Ardbeg has risen up a little and may well rise further but these percentages tell only half the story. The big change over the last few months is the value of the bottles being traded. In the past the big-ticket items, commanding high retail prices were the ones to invest in, but it seems they have had their day and the retail prices, even for very rare whiskies are no longer lower than the secondary market prices. My advice, for now, would be to stay clear of bottles over 5K and find the sweet spot which seems to be around £250 to £1500. I don’t think it matters much about the ranking at this level, and one is best to think long term. As with all investment portfolios, diversify. If you can collect a number of bottles in the top 10 from different distilleries within the sweet spot of £250 to £1500, and hang onto them for at least five years, you shouldn’t do badly.

The Dalmore 2%
Bowmore 3%
Macallan 1%
Springbank 1%
Clynelish 5%
Karuizawa 1.5%
Rosebank Official Bottlings 2%
Yamazaki 0.5%
Ardbeg 2%
Bunnahabhain

Bottles to Watch

As a pointer this month I am going to suggest Springbank as one to concentrate on. Some of these limited releases have different ABVs depending on release and are not listed here.

Springbank 16 year old Local Barley

The local barley release sells out in seconds, so if you see one you’re very lucky! Always sought after and very collectable. Also, absolutely delicious!

Springbank 9 year old Gaja cask

This is a bit of a sleeper for me. It’s not expensive, but it will be limited and lovely. I reckon this will rise quickly despite its young age.

Springbank 19 year old Sherry Cask

19 years old is unusual for Springbank, which singles this expression out. Being in sherry will also help its appeal, and will be looked for by collectors. At this price, for Springbank it’s a great deal.

Springbank 21 years old 1990’s

This is a rare find, and already has some age to it. Only one bottle here shows how rare these things are at retail. Bottled I the 1990’s, the distillate will be 1970’s and a wonderful look back in time.

Find here

Springbank 15 years old 1990’s

Another 1990’s bottling giving a view into the late 1970’s or early 1980’s. Again, a rare bottle and one worth hanging onto.

Find here

As with March, April and May’s Whisky Investment Indexes, any bottles mentioned are just suggestions, I don’t pretend to have a crystal ball, but it will point you in the right direction to do your own research and start you on your journey in whisky investment.

Which Whiskies to Invest in - March Whisky Investment Index

By Colin Hampden-White 

Which whiskies should I invest in?

Once you have decided you would like to invest in whisky, the biggest question is going to be which distillery’s whiskies to invest in. Like the stock market, distilleries’ value and popularity go up and down, and this on-going set of articles aims to make the decision a little easier.

I am not a financial advisor, and I strongly suggest you also do your own research. That research may differ from mine and have a different result. There are also other rankings available and they will use a different formula from mine in determining a ranking.

I sort our ranking by looking at a few of the most popular whisky auction sites in the UK. Most whisky which is invested in is bought at auction and the results of auctions can tell us a great deal about the popularity and desirability of certain whiskies and brands. I look at the volume of whisky being sold from any particular distillery and also the average value from that distillery. Taking both these sets of data into account I then create a ranking which I will update once a month, as whisky auctions are generally held monthly.

For example, the most traded may be Macallan and at the highest prices. However, if the price increase is marginal over time, giving not much rise in price, then it will be lower down the ranking. I am looking for whiskies which are rising in price. It may be that a rarely traded distillery, which has had recent high increases in value, could be at the top of the rankings.

How can I invest in whisky?

In my experience whisky is a great investment and, like any investment portfolio, it should be varied. Rather than investing in one expensive bottle, I would suggest buying a few less expensive bottles from different distilleries and at different ages. This can make the process less daunting and a lot more fun. Some people collect certain vintages, or distilleries or regions, By doing this a portfolio can have a definite direction and hold more meaning.

I am including Japanese whisky in the rankings as the investment value in the right Japanese whiskies has become evident. I am not including bourbon, but lookout for a forthcoming article on bourbon about which are regularly the best to invest in. Bourbon has its own following, especially in America and some bottles rise in price quickly after release.

I think it is not useful to include expressions that are regular bottlings but are being auctioned as part of a collection, house clearance, and generally don’t fetch their retail price as they are very widely available. I understand this is subjective, but with my experience, I decided to cut off at around the £100 mark on most distilleries.

The rates below relate to how much of a percentage higher a distillery has been trading above the next. In the future, as we now have this index base mark, I will track the increase of each distillery over time as well as increase over each other.

Distillery Index

The Dalmore 9%
Rosebank Official Bottlings 4%
Bowmore 1%
Yamazaki 0.5%
Clynelish 5%
Springbank 1%
Karuizawa 1.5%
Bunnahabhain 1.5%
Glendronach (base)

To reiterate I am not a financial advisor, and please do your own research. I cannot be responsible for gains or losses. This is simply a guide that hopefully helps people in their whisky investment journey.

I would advise getting other expert advice and, if you are looking to invest in excess of £2,000, then looking at cask investment may be a good way to invest in whisky, and we suggest Cask Trade Ltd. Cask Trade helped us with sourcing for our 17 year old blended malt, and we know them to be a very professional outfit.

And always remember. At the end of the day, you can always drink it!

Bottles to Watch:

Bowmore Mizunara Cask Finish

Mostly sold out around the world.

Size: 70cl
ABV: 53.9%
Find here: UK £2250

Bowmore 25 year old 1969

Already historic and produced in tiny numbers.

Size: 70cl
ABV: 43%
Find here: UK £2750

Springbank 21

As an annual release, these become historic and collectable.

Size: 70cl
ABV: 46%
Find here: UK £439.99 // US $499.99

Springbank 21 That Boutique-ey Whisky Company

Small batch and from a collectable brand

Size: 50cl
ABV: 47.5%
Find here: UK £339.95

Dalmore 40 year old 2018

Top of the tree, and a vintage 2018

Size: 70cl
ABV: 42%
Find here: £6,736.50

Dalmore 40 year old 2017

From top of the tree Damore as above, but from the sold out 2017 vintage.

Size: 70cl
ABV: 42%
Find here: UK £6750

8 Year old Clynelish from Simply Whisky

If you’d like to invest at a lower level, then good independent bottlings are a good choice.

Size: 70cl
ABV: 51.6%
Find here: UK £58.95

If you want to find out more about Scotch whisky then don’t forget to watch The Three Drinkers do Scotch Whisky on Amazon Prime now!