A stable investment is great, even better when it makes bull market jumps in value for over a decade. It becomes the best when that investment also happens to be a wonderful scotch. It may come as a surprise, but that mythical combination is the investment you should have made yesterday.
Whisky, over the last decade, has made a 582% leap in value, witnessing an immense increase unlike any other luxury product. Compared to luxury cars which only increased in value by 2% last year, whisky has achieved a groundbreaking single year growth of 40% in 2018. Indeed, the pound value of Single Malt Scotch Whisky sold at auctions in the UK rose by 62.70% last year alone. Not even the global recession slowed down its unrelenting march to greater value, and there is no sign that the international thirst for whisky will abate anytime soon.
The growth rate of this luxury asset is anticipated to continue due to a number of factors: first, it has been evident that whisky has been on a steady rise for the last 10 years and is only gaining momentum; second, the demand for whisky is expanding rapidly to China and India where there is massive potential for persistent gains as the rising middle and upper classes demand a higher standard of living; lastly, the rapid expansion of high quality new distilleries means that the market is set to have constant competition and innovation, inevitably inspiring better and more valuable whiskies.
This prediction is further supported by the fact that there is a finite number of bottles, resulting in a continual increase in value. Additionally, the perpetual expansion of distilleries both in the old and new worlds mean that supply will increase alongside the market without being so rapid that it causes a glut of whisky, as the time it takes for a whisky distillery to start selling its produce is numbered in years.
All of this creates the perfect storm from an investor perspective where the market is exceedingly lucrative, yet competition growth is kept in check– a market that has had sustained returns, but is rising in profitability at breakneck speeds. This trade is the best-tasting one you’ll have in your portfolio.