Out of all the investment ideas you had, this one is by far the most interesting one. Yet, you’re wondering if “interesting” could be a synonym for “ludicrous” here. After all, it’s not every day you hear people discussing about investing in whiskey. And, ever since you’ve heard of it, you’ve become interested in doing it as well, but you don’t want to make hasty decisions and risk your entire investment portfolio with some reckless moves.
So, is interesting the synonym for ludicrous here, or is there really something to this entire idea? That’s what you’re trying to find out, which is why you’re ready to read article here and then do even more reading before you get to the bottom of this and figure out if whiskey is a good investment. Diving into this without checking the facts would be reckless, and we’ve made it clear that recklessness is not your style when investments are in question.
Is Investing In Whiskey A Good Idea?
Instead of being reckless, you want to get a clear answer to your question. Is investing in whiskey really a good idea? Well, you probably won’t take my word for it, but it could help if I told you that the word is corroborated by research and that I’m not saying it just so. In short, the word is yes. Whiskey appears to be a very good investment opportunity, and since you can’t just take this as true and start buying, you now want to figure out why.
Why is investing in whiskey that good of an idea? Such a great question requires us to look deeper into the topic. As I’ve said above, I’ve already done research on this, which is why I felt confident enough to answer “yes” to the previous question, so now it’s time to share some of the research findings with you. Deciding what to invest in and what to pass on can be difficult, but it’s bound to get just a little bit easier with the right pieces of information. And, that’s what you’ll get right now!
1. You Can Earn Great Returns
Whenever assessing any type of an investment, you have to look at its history, so as to check how it has behaved in different periods and thus try and predict how it will behave in the future as well. This is what every investor does. Or, at least, this is what every investor leans on, because we don’t all have the time to check the entire history, but we do have the time to read a summary of an asset’s behavior – a summary that other experts have prepared for us.
What do you think you’ll find out about whiskey when you start looking into its past? And no, I’m not here to talk about the methods of making it and how those might or might not have changed throughout history. This question is actually related to the prices of this investment and to its earning potential. History will tell you that whiskey has great earning potential and that you should expect high returns if you decide to add it to your portfolio. That’s some history, perfect for investments, isn’t it?
2. The Older The Better
The older the whiskey, the better it is. This is common knowledge and if you ask any expert, they’ll tell you the same thing. Time makes whiskey better, and that has a huge impact on everyone’s decision to invest. The value of a cask is bound to double after every 5 years of maturation, and double really is a lot! So, if you buy now, and wait for a certain amount of years, you’ll be able to yield much higher returns than you might have expected, which is one great benefit of investing in this asset.
3. High Liquidity
Are you worried about being stuck with certain assets in your portfolio and not being able to get rid of them in any way? Well, this is a genuine and a reasonable concern, because some assets could lose on their liquidity and practically become unsellable at one point. Whiskey, however, is extremely liquid, meaning that getting “stuck” with it is not a danger you should worry about. You’ll get to sell it whenever you think it’s right, and you’ll find buyers in no time. Just make sure not to sell on a whim, though, because you always have to remember those returns in mind, as well as the maturity of the asset that makes it more valuable year after year.
4. Worldwide Demand
Another reason why whiskey is a good investment is because it is in high demand. The product is sought after worldwide, and exports are continuing to experience rapid growths. It would be great to own something that’s in such high demand, because the demand dictates the price, and the price is bound to rise when the demand is high. So, once again, thanks to that, high returns are just around the corner.
5. Limited Supply
Sure, the demand dictates the prices, but there’s another factor that influences those as well – the supply. Whiskey seems to be in that sweet spot. Demand is increasing and distilleries are struggling to increase production, meaning that supply is limited. That’s the sweet spot for selling at an amazing price and, naturally, getting a great return on your investment.