Particularly casks have drawn much attention lately as a kind of investment. Risk, however, also comes with opportunity. The massive market expansion of Scotch whisky is reflected in the abundance of new businesses and brokers offering high profits on whisky barrels in their marketing materials and social media advertisements.
If these assertions are accurate, purchasing whisky barrels seems to be almost free money. A tale of a fortunate barrel owner who made a significant profit on a cask bought in the 1990s brought this possibility to light.
Here are some tips on how to acquire a whisky barrel securely for anybody interested, whether for business or pleasure.
Steer clear of companies that use the term “Ten-Year ROI:”
Numerous cask investment firms refer to whisky as a high-performance alternative investment vehicle, citing a 586 percent or 564 percent ROI over ten years.
This statistic, often shown prominently on advertisements and websites, originates from the Knight Frank Rare Whisky Index, a gauge developed by whisky consultants Rare Whisky 101 that solely records the fluctuating prices of 100 rare and desirable bottles of whisky. It should be noted that this excludes casks and is a subpar predictor of the future market performance of whisky barrels.
Be wary of promises of “guaranteed returns:”
Some businesses have said that investors in casks may expect returns of between 10 and 20 percent annually, but this is false advertising, and any business making such a claim must be aware of it. Additionally, as of this writing, there are no valid or accepted indicators of the overall success of cask investments.
Absent a Delivery Order. You don’t possess a Scotch Whisky cask:
Knowing the few legal designations and paperwork that make up the core of Scotch whisky cask ownership is helpful.
The first is the WOWGR or Register of Warehousekeepers and Owners of Warehoused Goods Regulations. People who acquire a few casks as a long-term investment do not. However, it may be difficult to tell the difference between them and “revenue traders” legally.
Scams are still prevalent:
Cask whisky investment is unregulated by the UK’s Financial Conduct Authority, giving it a haven for fraudsters. Many fraudulent businesses were operating at the beginning of the new millennium, promising comparable huge gains as some bogus investing organisations do now. Nant Whiskey, Grandtully, Cavendish/Hamilton Spirit Management, the Napier Spirit Company, and others are repeated in the whisky community, accompanied by curses for how they defrauded investors too long ago.
Conclusion:
Scotch whisky has seen a dramatic metamorphosis in the last ten years. Overall, the demand for Scotch whisky has skyrocketed as records for the most costly bottles are consistently broken. Consequently, new companies and enterprises have created chances for interested customers to buy bottles and barrels.
Many companies are fooling people by offering insane prices for barrels and no true exit. Only Paladin offers exit via cask to cask and cask to bottle (when specific casks are chosen).