Whisky Focus - Whisky Outperforms Gold

Whisky outperforms gold as IGS market enjoys meteoric rise.

The market for Investment Grade Scotch (IGS) is continuing to outperform other alternative investments and commodities, according to new figures to be released today by whisky valuation experts, Whisky Highland.

Four year figures, from 2008 to the end of 2011, will reveal that an investment in the top 10 performing whiskies would have achieved a gain of more than 400%. An investment in the top 100 would have returned a 245% gain, whilst the top 250 would have returned 180%.

In comparison, gold, which has experienced a renaissance in recent years, has risen 146% over the same period, and diamonds by just 10%. Compared to the gains accrued by some other stocks and commodities, the returns from whisky begin to look very attractive.

A total of 8,500 bottles were last year sold at auction compared to 1,500 four years ago. The value of that auction market reached £4M in 2011 and is expected to rise to £17M by 2020. Global investor and collector bottle retail sales confirm that the retail sector is also booming with bottle sales thought to total 85,000 per year worth around £44 million.

The fourth quarter of 2011 saw a significant jump both in sales and volume, with more than 3,000 bottles coming up for auction in the UK with sales totalling more than £600,000, compared to less than 2,000 a year earlier with sales reaching around £400,000.

Last year, a bottle of The Dalmore 62 was sold at Changi Airport in Singapore for a world record £125,000, following on from the sale of a bottle of Dalmore 64 in Harrods for £120,000. The most expensive bottle ever sold at auction is a bottle of Macallan 64 year old ‘Cire Perdue’ which sold at auction in the US for $460,000

The latest three year data for investment grade Scotch will be unveiled today (2nd March) by Andy Simpson, founder of Whisky Highland in the world’s first Whisky Investment Seminar at the 2012 Universal Whisky Experience in Las Vegas.

Andy Simpson launched Whisky Highland in 2010 with the aim of offering a whisky valuation service for whisky collectors and investors. Having tracked every bottle sold at auction over the past three years, the business now offers the world’s first and only online single malt Scotch whisky 'Valuation Library'.

Commenting on the latest market data, Andy Simpson, founder of Whisky Highland said:

"Over the last twelve months, the market for whisky investment has begun to catch the eye of the investment community. Some of the rare and limited bottlings from the top performing distilleries such as The Dalmore and Macallan are achieving eye-watering returns at auction, outperforming most other forms of alternative assets. I’m confident that it won’t be long before whisky is viewed in the same light as art, wine or classic cars, offering a genuine and creditable alternative to these more established asset classes. We can already see this happening with the growth of the dedicated whisky auction market. Where you would previously see a few bottle of whisky bolted on the end of a wine auction, there are now a number of dedicated whisky auctions taking place across the UK and further afield in countries such as Hong Kong."

Rare Whisky Director for The Dalmore, David Robertson said:

"The demand for rare and limited edition whiskies is exceptional, and it’s a trend that is set to continue in line with the uplift in other luxury goods markets. We are going to see more distilleries and brands release very special whiskies which are designed to meet the growing demand from luxury consumers looking for the ultimate in unique products, whether to use and enjoy or to collect and invest."
 

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