Bitcoin, NFTs, contemporary art… What about whisky?
Are you looking for a new investment opportunity to diversify your portfolio? Luxury liquor is a relatively untapped market (pun intended). In particular, whisky sparks interest among those looking to put money into more unusual categories.
Read on to learn why fine whisky (in bottles, barrels, or stocks) might be a suitable investment for you.
Good Historial Performance
If you look at the data stretching back over the past decade, it appears the industry is on the up. Market worth exceeded 57 billion in 2022, and it’s set to grow by more than 6% in the coming years.
And just take a look at the Apex 100 Index, which tracks rare whisky bottle performance. It points to a growth of over 400% since 2012. Other indexes, like Rare Whisky Icon 100 and Vintage 50, also track positively.
All of this is a good predictor that if you make investments in whisky now, you’re likely going to reap the benefits in the long term.
The Market Is Growing
One of the best investment tips you’ll get from seasoned investors is to check the market forecast. Is it predicted to grow, or do economists and other financial professionals expect a decline?
As mentioned above, when it comes to the whisky market, the trend is only up. What’s more, this opportunity is trending among young investors. That’s because it’s still available at affordable prices, and the potential for return is lucrative.
Before looking at unusual investment opportunities like whisky, you must learn about Scotch whisky and other luxury liquors. Never invest in anything without doing your homework and understanding the product or service.
One of the most common investing tips is to diversify your portfolio.
It’s good advice, but you want to ensure you’re diversifying into areas with balanced risk. And that means looking for investment classes with a good return on investment (ROI).
Rare whisky is one such option. Whisky bottles from the 1920s go for and 50-plus-year-old Japanese whiskies regularly go for hundreds of thousands of dollars at auction.
Knowing how to invest in some asset classes can be a hurdle to new investors. Thankfully, the whisky market is easy to get into. Even the average retail investor can buy bottles or casks with just a few hundred dollars.
Of course, before you buy, you need to do your research into which distilleries are your best bet for a solid return.
Whisky: Is It an Investment Opportunity for You?
The realm of whisky and upscale spirits is an intriguing and potentially profitable area to broaden your financial portfolio. But, as with any investment class, it comes with its share of risks.
Take your time to examine the advantages and disadvantages of this sector and evaluate its performance. This will help you decide whether purchasing whisky shares, bottles, or casks is a wise investment opportunity.
For more financial advice, read the other articles on our blog.