Investing in whisky casks is now accepted as a solid investment with cask owners seeing healthy returns from their initial investment.
Before you decide to buy casks of whisky it is important to be fully aware of the ways in which buying and investing in casks of whisky differs from investments in other more mainstream assets, such as property or shares.
There are 2 main differences to be aware of:
- You won’t receive any annual income from your cask
- There is no liquidity in casks; you cannot sell part of your cask
Casks don’t provide you an annual income and unlike property, which can provide rent, and shares, which can give annual dividends, you will not receive any income from your cask. This means that depending on the age of the cask when you made the purchase you will see no returns on your asset until you sell that cask. Younger casks (up to 9 years old) are recommended to be held for 10+ years; casks aged 10 years and over are recommended to be held for 5+ years.
Casks are a mid to long-term investment and if you are considering buying a cask you should be prepared to have your capital tied up for at least 5-10 years to see the best returns on your money. If you need to release part of that capital beforehand you will need to sell your entire cask, as you cannot sell part of a cask.