If you can resist drinking it, whiskey is actually a very solid investment. According to a recent study by Lloyds Private Banking, out of those who invest in things they have a personal interest in, whiskey investors are the most satisfied. The numbers show it isn’t without reason: whiskey investments are set to generate a 41% return over the next decade.
What makes it such a good time for whiskey?
Well, the value of rare spirits is on the upswing, unlike some other commodities. Since 2008, rare whiskey has increased in value by about 360%! It’s also doing well at auction, and offers investment levels that can fit into many budgets. A quarter of those pursuing so-called “hobby investments” spend less than $1,250 on them, although when narrowed to just whiskey, a third of investors have spent upwards of $60,000 on a single item!
So, how does one decide to invest in whiskey?
Passion drives these hobby investors, with 44% claiming personal interest as their primary motivator. There is a level of emotional attachment to whiskey among investors at a level only slightly lower than that of art and antiques. Although buying rare whiskey looks like a solid bet at the moment, it remains important for investors to be able to view their assets with detachment and reorient their portfolio if the market weakens. Otherwise, you might end up drinking that formerly $50,000 bottle in a fit of despair. No judgment here though!
Looking to get into the rare whiskey game (or the Jack Daniels game)? Frankly, trying to get a liquor license in Texas can be almost as risky. Not to worry, though, LaBarba is more than qualified to manage that risk for you – let us know when you want to start!