Rare whisky
values continue to rise according to
figure released today.
 In
spite of a significant increase in the
volume of rare whisky traded during
2012, values are still rising according
to figures published today by whisky
investment experts Whisky Highland.
Last year saw a record number of full
sealed bottles of single malt Scotch
whisky sold in the UK on the open
market. In 2011 there were 8,696 bottles
sold, this increased by 62.7% in 2012 to
14,150. Early 2013 figures suggest this
rapid growth in the market is
continuing. Quarter one 2013 saw 3,789
bottles sold which represents a 34.5%
increase on quarter one 2012’s 2,818.
Whisky Highland’s founder Andy Simpson
commented “With this rapid increase in
supply we would have expected to see a
stabilisation or even a slight decline
in overall values. Quite the opposite
has happened, with rare and old bottles
of whisky continuing to outperform many
other alternative asset classes”.
The top 1,000 performing bottles of
Investment Grade Scotch (the Whisky
Highland IGS1000 Index) increased by
23.27% over the course of 2012, yielding
an overall increase of 123.01% between
2008 and the 31st of December 2012.
Quarter one 2013 saw a continuation of
this bullish market in what is typically
the quietest quarter of the year. In
quarter one 2012, the IGS1000 increased
by 2.68% compared to a 6.05% increase in
quarter one 2013.
At the top end of the market, the IGS10
(the top ten performing bottles of
Single Malt Scotch) saw a second quarter
of declines to the end of 2012, when
overall 2008 – 2012 yields moved from
557% to 508%. To a large extent, this
decline was reversed in quarter one 2013
when the index increased to 542%. This
positive momentum is being led by rare
bottles from iconic distilleries.
The
Whisky Highland Index top 10 brands are:
- No. 1 – The Macallan
- No. 2 – Port Ellen
-
No. 3 – The Dalmore
- No. 4 – Balvenie
- No. 5 – Ardbeg
- No. 6 – Brora
- No. 7 – Bowmore
- No. 8 – Glenury Royal
- No. 9 – Highland Park
- No. 10 – Glenlivet
Simpson commented "We are still
witnessing continued increases in value
for the right bottles from the right
distilleries. The story is not quite so
attractive at the other end of the scale
with the worst performing bottles of
single malt Scotch continuing to tumble
further into red territory."
The negative index, the IGS(neg)1000,
saw a further decrease in value through
2012. The worst performing 1,000 bottles
would have yielded an overall loss of
28.65% between 2008 and the 31st of
December 2012 (2008 – 2011 loss was
22.75%). The continuing decline in
values for the worst performing bottles
seems to have stabilised into early 2013
with quarter 1 figures showing an
overall loss (2008 – 2012) of 28.12%
From an investment perspective the most
sought after brand remained The
Macallan. Continued increasing demand is
pushing prices to new record highs. The
2011 Macallan ‘Royal Marriage’ bottle
originally retailed at £150. This bottle
now sells for around £900.
Many silent (closed) distilleries are
now suffering from exceptionally short
supply as existing maturing stock
continues to deplete rapidly. The likes
of Port Ellen, Brora, Rosebank and
Glenury Royal are experiencing
unprecedented demand for an ever
decreasing pool of both bottles and
whisky still in the cask.
The current dynamics of increasing
global demand and decreasing stock of
suitable investment grade bottles has
maintained a very bullish market in the
face of an ever more challenging
economic climate.
Simpson concluded "These results are
very impressive and further cement rare
Scotch’s credentials as a viable
alternative investment. While it must be
borne in mind that whisky values can
fall, as has been seen in some areas of
the market previously, the current
situation remains exceptionally buoyant.
I still maintain whisky should be viewed
as a long term investment of 10 to 20
years although clearly short/medium term
increases are being experienced at the
moment."
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