What is Investment-Grade Whisky?

Grains That Gain?

Whisky investing continues to gain traction as an alternative asset class, but what exactly makes whisky investment-grade? These spirits are those rare and exceptional bottles that attract the attention of both collectors and investors alike on the secondary market. The whiskies are often limited edition releases or vintage bottles from well-known distilleries. While the value of investment-grade whiskies can fluctuate, they tend to appreciate in value over time due to their rarity and the demand from collectors and enthusiasts.

These are some of the key factors that determine the value and investment potential of these wines.

What Makes a Whisky Investment-Grade?

Rarity

Investment-grade whiskies are often rare or limited edition releases that are difficult to find. This rarity makes them highly sought after by collectors and investors. It takes 50 years to make a 50 year aged whisky, so it’s not something that can simply be replicated.

Age

When it comes to whisky investing, age greatly impacts its valuation potential. Generally, older whiskies are more valuable than younger ones, as they have had more time to mature and develop complex flavors. For example, a 50-year-old Macallan can fetch hundreds of thousands of dollars at auction.

Brand

The reputation of the distillery can also impact the value of an investment-grade whisky. Well-known brands like Macallan, Lagavulin, Yamazaki and Ardbeg are often more valuable than lesser-known brands. This comes down to an established reputation of consistently making top quality whisky.

Condition

The condition of the whisky bottle and packaging can also impact its value. Bottles that in the original packaging are generally more valuable than those that have been altered or damaged.

Examples of Investment-Grade Whiskies

1. The Macallan 1946 - This vintage bottle of Macallan is one of the most expensive whiskies in the world. The brand itself is similar to Apple or General Motors stock. It is a blue chip whisky brand, representing a fairly good barometer of the rare spirits market.

2. Lagavulin 37-Year-Old - This limited edition release from Lagavulin was bottled in 2013 and has since become highly sought after by collectors and investors. Its rarity and age make it an investment-grade whisky.

3. Ardbeg 1974 - This vintage bottle of Ardbeg was bottled in 1998 and is highly sought after by collectors and investors. Its rarity and age make it an investment-grade whisky that has appreciated significantly in value over time.

4. Karuizawa Ruby Geisha 38 Year Old Single Malt - Part of Vint’s Karuizawa Geisha Collection, the Ruby Geisha 38 Year only had 223 bottles produced, and is part of a series of whiskies from the long closed down Karuizawa distillery. These are exceptionally rare, as the original distillery is no longer producing more.

These are just some of the most popular examples of invest-grade whiskies. The main thematics behind whisky investing tend to revolve around old and rare bottlings, that can’t be easily replaced.

Doing Things Right

Investing in whisky can be a smart way to diversify your investment portfolio and potentially generate returns. However, it's important to choose investment-grade whiskies that are likely to appreciate in value over time. When selecting an investment-grade whisky, consider factors like rarity, age, brand, and condition. By doing proper research and utilizing the expertise of professionals, Vint can help investors gain access to the asset class for as little as $50 a share.