Skip to main content

5 reasons to invest in whisky barrels

Written by Jenni Coward on . Posted in .

Here are 5 REASONS why investing in maturing single malt whisky barrels could be your smartest financial move:

1. Limited supply of aged stock

Whisky production is a time-consuming process, with most single malt Scotch whiskies requiring a minimum of 5, and up to 8 years of ageing before they are bottled. This means that there is a limited supply of aged whisky available globally, which has driven up prices.

Additionally, as demand for aged whisky continues to grow, particularly from countries such as China and Taiwan, the growing stockpile of ageing 6 year old Coburns single malt whisky becomes even more valuable.

2. Potential for high returns on investment

In recent years, the value of certain rare and sought-after whiskies has risen dramatically, with some bottles selling for hundreds of thousands of dollars at auction. This has brought whisky investment into the mainstream media.

Investing in a barrel of maturing single malt whisky can provide the opportunity to purchase a large quantity of ageing stock and receive a high fixed return. As barrels of whisky are sold with a guaranteed buy-back you do not need to find a buyer yourself.

3. Less susceptibility to market fluctuations

As a physical asset, maturing whisky is less susceptible to market fluctuations and other economic downturns compared to other investments such as stocks and bonds.

This makes it a relatively stable investment option, which can be very beneficial in times of economic uncertainty.

4. Your involvement in the production and maturation process

Investing in single malt whisky barrels also provides the opportunity for investors to be involved in the production and maturation process.

The Coburns offer gives opportunity for individuals to enter the whisky market via the purchase barrels of maturing whisky, and as a side benefit these investors have the opportunity to visit the distillery, taste the whiskies as they mature, and even bottle and label their own brand or limited releases.

Invitations to Barrel Owner only whisky dinners, special tasting events in State Capital cities every year is part of the experience barrel ownership entitles you too.

This level of personal involvement certainly adds an additional layer of enjoyment to the investment experience.

5. Market Risks investing in barrels of single malt

Purchasing of barrels of Coburns single malt with a buy-back agreement seeks to mitigate the majority of risks for the barrel owner.

It’s important for investors to thoroughly research the distillery and discuss the specific sizes and values of the barrels they are considering investing in, and to have a clear understanding of the risks involved.

 

In conclusion, investing in barrels of maturing single malt whisky can be a strong financial decision for those looking to diversify their investment portfolio. The returns are very competitive while providing the distillery a cost effective way to finance stock.

The limited supply of aged stock in the world at the moment and the resulting potential for high returns on investment, less susceptibility to market fluctuations, involvement in the production and maturation process, and tax benefits all make it an attractive investment option.

 

To get fixed returns and a guaranteed buy-back, Become a Barrel Owner with Coburns.