With investment returns on gold and silver currently yielding very little, Bullionvault has just launched a new complementary investment opportunity in a more ‘liquid’ market, whisky – WhiskyInvestDirect.
This is not a cask investment programme says Bullionvault, this is about the private investor investing in commodities blending whisky, the “…unglamorous workhorse of the worldwide Scotch whisky industry”.
There are, according to Bullionvault, 10 billion bottles’ worth in Scotland’s inventory, which makes it a substantial asset class and so far prices have not been chased up.
Bullionvault also says that “Over the last ten years average yields on 8-year old blending spirit acquired new have exceeded 7% per annum real”.
One point to consider is that as the whisky gets used up, what is left gets better with age and becomes relatively more scarce so has the potential to increase in value.
There are of course risks involved, which are explained on the WhiskyInvestDirect Safety page.
• The market price may fall
• If the whisky you invest in becomes too old or too scarce it may no longer be useful for blending.
• It could get destroyed
• It could get stolen
• WhiskyInvestDirect could go bankrupt
But, in the end there is the last resort: “In the statistically unlikely event that your investment goes badly wrong you can bottle it, pay the tax, and enjoy it.”
Miguel Soto, regional General Manager, leading wine and spirit plc:
“WhiskyInvestDirect looks set to revolutionise the Scotch industry through a simple and sustainable approach. It will remove a barrier to growth for small and large players, and create a privileged alternative investment opportunity.”
Dominic Roskrow, Fortnum & Mason Drink Writer of the Year 2015:
“WhiskyInvestDirect is set to open up the world of whisky in an engaging and organic way, offering participants a chance to profit from investing in maturing stocks.”
Sara Ann Datta, Ex-Diageo Strategy Director:
“WhiskyInvestDirect is creating a marketplace for whisky by bringing down transaction costs and providing transparency. For the first time, retail investors can invest in whisky in a cost-effective, hassle-free way.”