Whisky Cask Investments
Single malt whisky is fast establishing almost legendary status at the elite auction houses around the world, regularly breaking records, joining the ranks of Art and Fine wines as a safe, lucrative alternative asset – the popularity steadily increases each year and shows no sign of waning, as collectors and investors flock to Scotland’s ‘liquid gold’.
The demand for this alternative asset class is especially prominent in Asia, where savvy people are looking to diversify their portfolios.
The Key factors that people look for are rarity and historical significance, whether it be single bottles or entire casks.
All indications point to a very healthy and profitable future in the single malt world, due to the basic principles of supply and demand, as the market for collections and investments grows then retrospectively so does the scarcity and in conjunction with quality, this is a real driving force behind the price increases for the best distilleries.
Highland Whisky Corp provides the opportunity to buy and hold cask whisky, and limited edition bottles, with our trusted expertise we will help you build and manage your collections.
Alternative assets have a tendency to behave differently than more traditional markets, and history has proven that by adding them to a portfolio can provide solid diversification that enhances returns and capital appreciation. It is now generally accepted that whisky casks are a good investment option in uncertain times.
Whether you are an experienced collector or first time buyer if you would like consideration to become a client kindly submit your details for an informal and unconditional interview.
A smart investment
Collection
Fundamentals to bear in mind when picking an investment-grade whisky:
The first is Rarity – miniscule supply of limited runs will ensure asking prices stay high
Secondly collectability – whisky houses such as Macallan, Highland Park, Balvenie, Dalmore, Ardbeg have achieved almost cult like status amongst collectors.
Thirdly there are the Collections – some of the best distilleries will release a series of special editions (range), across the years, which form a collection. If you own each bottle in the series, the value of your haul can go up exponentially.
Securing the future
Cask Whisky investment is an extremely attractive alternative asset class that provides some significant tax advantages:
Firstly, investing in a cask is tax-free due to the fact that the physical casks are held, stored and insured in Scotland in an HMRC fully bonded warehouse.
Secondly, because of the natural evaporation of a small percentage each year (the Angels’ share) it is classed as a ‘wasting chattel” which makes it exempt from capital gains tax – however, please note: this is true only if the cask is sold on during the maturation period, within the HMRC warehouse.
This would normally be after a minimum 10 years, although on occasion it can be slightly earlier; the longer the hold the higher the value being the industry standard. These factors make this one of the most versatile investment opportunities on the market and have attracted the more acute investors to diversify their portfolios to include cask single malt cask whisky.
Some of the most popular reasons are:
• Retirement planning
• Children’s education
• Family Inheritance
As it is an actual physical asset, that is not index linked to any external market, it has not only proven to be a stable investment class but more importantly very lucrative.