Is Cask Investing a Safe Option?

by | Nov 8, 2022

Whisky and Cask Investments have undoubtedly been a trend for more than a decade now but has rapidly gained momentum the past few years. If you are reading this blog, it is also another sign that searches and queries on the matter, are increasing for all investors, looking for a secure and reliable ways to increase their wealth.

Investing in alternative assets can be a wise area for you to be putting your savings towards. According to Knight Franks’ Wealth Report 2020, rare whisky was the best performing collectible of the decade, experiencing a rapid rise in value of 564% up to 2019. They have consistently outperformed traditional financial markets, by a significant degree and are expected to continue doing so in the foreseeable future.

Nonetheless, if the above is not enough to persuade you to take a closer look into the cask investment market. Allow us to provide you with some more insight. Let us have a look into cask investments, what they are, how they work, and ultimately if they are a good investment.

Casks

Owning a maturing cask of whisky might be every whisky lover’s dream. However it can also be a highly profitable investment for the future. Whether you opt for a quarter-cask or a full cask, the contents should appreciate in value over time. The pure nature of cask whisky means that rarity and quality both increase with age, so given the investment of time allows your whisky to grow in value.

After all, maturing whisky evolves in a way that a bottle of whisky just never will. Each cask is patently unique – even when two identical casks are filled at the same time with the same spirit. They will undoubtedly be different as the taste will be different. It is a limited commodity, and once they are gone, that is really your chance gone too. There will never be another cask like it.

Are casks grouped by region?

As you may notice when visiting our website, we are fully transparent to our investors when it comes to their casks. We offer detailed information on each of the plethora of regions we provide whisky from. As each offers its own qualities ranging in taste, character, and maturity time. One of the main reasons is because each area (and distiller) uses their own unique barrels, conditions, and distillery methods to ensure their “produce” achieves optimal flavour and quality.

Worth Investing?

As an investor, it is important to bear in mind that buying at the lowest price you can is obviously the smartest decision. But there are also other factors to consider. For example, making sure it’s a solid distillery with a good master distiller behind it is very important as well. The more they build their brand, the more the cask of whisky will go up in value.

Firstly, the whisky inside barrels needs at least three years to mature before it can legally be considered whisky. Therefore the longer it matures the better the whisky inside the barrel is considered to be.

Secondly, 90% of whisky casks are bottled before they reach 12-years-old. This is why if you let your whisky mature for over 12 years then your whisky will be rarer. This causes an additional increase in value with subsequent benefits attached.

Lastly, waiting at least 10 years before selling your barrel gives the distillery that you bought from time to invest in their brand. Simitltanisouklsallowing them to reposition themselves in the market. Much of the increase in value of barrels comes from the public perception of the brand. Hence investing in Whisky is like Investing in a brand, an idea, a distillery whilst having fun. All-In-One.

How to evaluate your risk “appetite”

As an investor, it is important to bear in mind that buying at the lowest price you can is obviously the smartest decision. It is hence also crucial to be aware of your budget (i.e. monetary constraints and capabilities) available for your investment. As an example, a three years’ old cask could come in at £1,500. While the oldest, at the ripe old age of 50, is around £300,000. The budget that you would want to personally allocate will be specific to your own requirements. The next consideration is to look at what your target timeline is. Would you be looking to see a return in three years, five years, 10 years? Do you want to buy one cask and sit on it, or would you rather have a portfolio of different ages? You may even want a portfolio where you can cash out at different maturity dates.

With the above said, it is evident that Cask Investments can be a safe and profitable investment. Whether you are a whisky enthusiast, an expert or simply a savvy investor. Profiting and gaining enjoyment from this exciting market could have a dual benefit. You not only get to invest wisely, and reap the benefits of your insightful choice, but also enjoy investing in a tangible asset, you can be proud of.

With the help of PAI’ expert advisors, our transparent pricing, and full ability to manage and control your assets, the chance for you to invest your hard-earned savings, is now!

Now Is The Time To Invest with Paladin

PAI source the widest range of quality casks at the best possible prices. We bring together rare and untapped casks both from known and hard to access names to our customers. Allowing them to invest in reputable distilleries, spread in all 4 corners of the world. Our hard-earned market knowledge and experience allows PAI to help investors safely get involved the whisky market. One that has consistently shown annual returns. Whilst also guiding them on when, how, and how much to invest to ensure they get the results they desire.

Paladin’s Exotic Beverages’ platform brings together exceptional whisky (and other beverages) expertise with consummate market knowledge. We offer rare and untapped casks, both from known and hard-to-access suppliers. Thus opening something unique to even the most ardent of connoisseurs. 

Keep an eye out for our next blog, with more updates, information, and details on how to sign up!

It’s time to Invest Like Billionaires Do!