Is rare Malt Whisky a good investment?

Financial analysts in 2009 pointed to the performance of investment in vintage wine as a safer and more profitable venture than traditional blue chip companies. Vintage wines and champagnes have a proven market value and if the asset is kept in optimum condition has an earning potential that is almost unrivaled. These commodities out performed the stock market in their returns. The assets obviously will reach a higher price when the economy is booming and it's ultimate consumer will ironically enough be the fund managers celebrating their financial success and foresight. In a London restaurant four major financial traders sat down for a lunch. The four bankers bill came to £96,000, the bottles of wine they consumed from the eateries wine cellar totalled £96,000. The bankers got their meals gratis due to the amount they spent on only four bottles of vintage wine. The question i am asking is could a similar level of performance be matched by investment in malt whiskey?

Whisky has it roots in many different cultures and countries. Both Ireland and Scotland have a long history and valued prestige with the drink ,and some elitist connoisseurs of single malt will use their products as the benchmark of greatness. The brands of whisky and bourbons from USA, Canada, Australia or Japan cannot be overlooked for ground floor investment opportunities. Worldwide consumption of whiskey is still strong with India and China been large markets.The drink is drank in over 200 countries and the amount of whisky sold per year is massive.

Before we dismiss the idea out of hand that whisky can have the same collect-ability and potential for increasing its net worth, lets examine some facts. Wine and Champagne vintages have continued to increase in value. If wine has been rescued from a sunken wreck it has a greater value even if it is undrinkable. A single malt is more expensive now that most higher end wines which are available either online or from reputable wholesalers of beverages.I must clarify Single malt is usually distilled on one of the Celtic islands and not the blended whisky or scotch you see on optics in pubs ( these include Bells, Grants and Whyte and Mackay). With wine i am referring to wines over 5 or 6 years old at least, and generally the wine is sealed with a cork.

To prove whisky is a commodity i came across this recent small story concerning beverage company Diageo. Diageo has recently come up with a novel initiative to plug its pension deficit that will see it use barrels of whiskey as collateral.The company, owner of the brands Johnny Walker and Bushmills whiskey announced it had agreed a funding deal to transfer £500m worth of maturing whisky to trustees of its pension scheme. This would be sold back at a later date but generally capped to a mutually agreeable figure. Here is a potential investment opportunity as if the whisky is ever bottled it has a story attached to it.

Still not convinced? okay, the following are a couple of bottles of fine single malt. The malts are less than 70 years old and if you compare them to relevant vintages in the wine world i think its a good comparison.

1. Bruichladdich Limited Edition 40 year old Whiskey. It was distilled on 24th October 1964.The batch was matured in fresh Bourbon casks. Now bottled as the oldest ever from this distillery, and is a limited edition of 500 bottles each valued and sold at ....£1,000 per bottle.
2. Midleton 1996 This is a very rare Irish Whiskey, it is triple distilled by John Jameson & Son, aged to perfection and bottled in the year 1996. Each bottle is individually numbered and expect to pay about £245 per bottle.
3. Glenfiddich 1937 64 Year Old 70cl bottle. This rare bottle is 40%ABV Distillery Bottled at Speyside. This Single Malt Scotch Whisky is the rarest Glenfiddich ever released. Just 61 bottles of spirit remained in the cask when it was bottled in 2001. At 64 years of age, it was also the world's oldest single malt whisky at the time of release. As such, and coming from such a famous distillery, it is one of the most collectable whiskies ever released, and makes headlines around the world every time a bottle comes up at auction. expect to pay upwards of £50,000.00