Andy Simpson
Andy Simpson, founder of Whisky Highland, a consultancy that offers expert insight into whisky valuations and investment, Tain, Scotland. He is founder of RareWhisky101.com, a whisky investment website.
Wine is no longer the only investment-grade intoxicant. The Rare Whisky Apex 1,000 Index, which tracks the value of 1,000 collectible Scotch whiskies, climbed an impressive 220% in value from its inception at the start of 2009. But investing in whisky requires some sober judgment…
Distilleries periodically offer limited releases. It’s these special bottles that have investment potential. But not every limited release is a good investment. To find the most promising limited releases…
Favor iconic distilleries such as Ardbeg…Bowmore… Dalmore…Glenfiddich…Glenlivet…Lagavulin…Laphroaig…and Macallan.
Example: In 2011, Macallan marked Prince William’s marriage with a Royal Marriage Commemorative Edition whisky. It sold for around $240 and now sells for around $1,750 (profit: $1,510).
Make sure the whisky is well-reviewed. Whiskies increase in value only if connoisseurs are willing to pay steep prices to drink them. Read WhiskyFun.com, the website of influential whisky reviewer Serge Valentin, in search of raves about upcoming limited-release whiskies.
Distillers sometimes sell special limited releases only to buyers in the UK. Americans can buy these through online auction houses such as ScotchWhiskyAuctions.com and Whisky-OnlineAuctions.com. Other collectible whiskies also are available at these sites.
Avoid limited releases that come in very impressive packaging. Whiskies offered in bottles made of fine crystal or bottles designed by famous artists tend to make poor investments. The pricey packaging can significantly inflate the cost of the limited release, and whisky collectors and drinkers prefer to put their money into whisky, not whisky bottles.
Don’t invest in blended whiskies. Most whisky collectors are interested only in single malts, which are made from only malted barley and from a single distillery.
Buy bottles mainly from your favorite distilleries. That way, if a bottle doesn’t increase in value, you at least have something that you enjoy drinking.
Single-malt whiskies dating to before 1980 or so can have investment potential even if they are not limited releases and/or are not from the most iconic distilleries. Even blended whiskies can have some investment value if they date to before World War II.
A significant number of well-regarded distilleries have gone out of business. These distilleries’ whiskies will only become rarer—and quite possibly more valuable—as time passes. Port Ellen is perhaps the most collectible of these “silent” distilleries. Others with investment potential include Brora, Coleburn, Convalmore, Glen Albyn, Glen Mhor, Rosebank and St. Magdalene.
