Whisky outperforms gold as investment Scotch market booms
Published: 05/03/12 Source: ©The Moodie Report
The market for investment-grade Scotch is continuing to outperform other alternative investments and commodities, according to new figures from whisky valuation expert Whisky Highland.
Four-year figures, from 2008 to the end of 2011, have revealed that an investment in the top 10 performing whiskies would have achieved a gain of more than +400%. An investment in the top 100 would have returned a +245% gain, while the top 250 would have yielded +180%.
In comparison, gold, which has experienced a renaissance in recent years, has risen +146% over the same period, and diamonds by just +10%.
A total of 8,500 bottles were last year sold at auction compared to 1,500 four years ago. The value of that auction market reached £4 million in 2011 and is expected to rise to £17 million by 2020.
Global investor and collector bottle retail sales confirm that the retail sector is also booming with bottle sales thought to total 85,000 per year, worth about £44 million.
The fourth quarter of 2011 saw a significant jump both in sales and volume, with more than 3,000 bottles coming up for auction in the UK with sales totalling more than £600,000, compared to less than 2,000 a year earlier with sales reaching around £400,000.
Last year, a bottle of The Dalmore 62 was sold at Singapore Changi Airport for a world record £125,000, following the sale of a bottle of Dalmore 64 in Harrods for £120,000. The most expensive bottle ever sold at auction is a bottle of Macallan 64yo Cire Perdue which sold at auction in the US for US$460,000.
Growing demand from luxury consumers
Commenting on the data, Whisky Highland Founder Andy Simpson said: “Over the last 12 months, the market for whisky investment has begun to catch the eye of the investment community. Some of the rare and limited bottlings from the top-performing distilleries such as The Dalmore and Macallan are achieving eye-watering returns at auction, outperforming most other forms of alternative assets.
“I’m confident that it won’t be long before whisky is viewed in the same light as art, wine or classic cars, offering a genuine and creditable alternative to these more established asset classes. We can already see this happening with the growth of the dedicated whisky auction market. Where you would previously see a few bottle of whisky bolted on the end of a wine auction, there are now a number of dedicated whisky auctions taking place across the UK and further afield in countries such as Hong Kong.”
The Dalmore Rare Whisky Director David Robertson said: “The demand for rare and limited-edition whiskies is exceptional, and it’s a trend that is set to continue in line with the uplift in other luxury goods markets. We are going to see more distilleries and brands release very special whiskies which are designed to meet the growing demand from luxury consumers looking for the ultimate in unique products, whether to use and enjoy or to collect and invest.”