Whisky, like wine, has become an alcoholic beverage that many see as an attractive alternative investment.

However, whisky is an asset that should only make up a small portion of your portfolio as much as possible. Plus, your investment portfolio should already be well diversified and balanced by the time you venture into whisky investing.

That being said, here are two ways to get your whisky investment on the road.

In Bottles

Buying and collecting bottles of whiskies until you sell them for a higher price is one of the easiest ways you can invest in this alcoholic asset. But you can’t just purchase any whisky bottle. If you want to sell your bottles at a profit, they should be of quality, rare, and produced by established distilleries.

The single-malt Scotch currently dominates this market, as the appeal of this liquor to investors is more limited, even if countries like Ireland and Japan make relatively enough whisky.

In addition to opting for reputable whisky makers, investors consider the taste quality when buying bottles of the liquid gold.

Whisky investors have specific preferences regarding the flavor of this drink, which can impact the bottle’s price. For example, sherried whiskies usually sell for an excellent price, and the same can be said for the darker ones.

Moreover, first-time investors should stay updated with whisky auctions and private sales. You can also research distilleries for any information or announcements about their new, limited-edition bottles.

In Casks

Owning a cask or barrel of whisky is another tangible way to invest in the alcoholic beverage.

Distilleries allow private investors to buy their whisky in casks in their store rooms. That way, they can pay for the labor costs and generate the capital necessary for distillation, considering Scotch whisky needs to mature for at least three years.

Investors purchase a cask, expecting the spirit inside to grow more valuable over the long term. The older a whisky gets, the higher the price it can fetch. That’s because the flavor and supply of the amber liquid become better and more scarce, respectively, the longer you let it age.

You can buy a whisky cask while the spirit is still new and have the investment handled directly through a distillery, qualified broker, or investment club.

Brokers are often able to negotiate a reasonable price with distilleries for a certain amount of casks. Once they’ve acquired the barrels, they are insured, kept in a bonded warehouse, and sold to interested investors.

If you plan to make a whisky cask investment via a broker, you should confirm whether the broker has the necessary tax license relating to the country where the casks are stored.

Factors to Consider Before Investing in Whisky

Ultimately, investing in whisky carries as much risk as making a poor investment in the stock market. If you buy the wrong drink, you may have a tough time selling it.

Scams are another major risk in whisky investing. Investors sometimes end up putting money into low-quality whiskies because they have been made to believe that they are buying high-end liquors when, in fact, they are not.

Whisky being a tangible asset, is also a risk itself. Investing in whisky bottles carries the risk of being fake, broken, stolen, or even drunk.