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Why whisky casks could be a better investment than you think

Sponsored by Tomoka Casks
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Seasoned whisky expert Jass Patel of Tomoka Casks discusses how investors can profit safely from cask whisky investments

 

 

 

If a friend told you they’d made a 4,600 per cent return on a couple of whisky casks, you’d probably think they’d had a few too many, or that they’d been scammed. But this actually happened when bank manager Roger Parfitt made a £220,000 return on a pair of casks he bought in the 1990s.

 

In 1994 Parfitt purchased a cask of Macallan single malt for £3,200 and a cask of Tobermory for £1,500. Despite not being a whisky expert, Parfitt had expected the casks to appreciate in value over the years and hopefully generate a bit of extra cash to add to his retirement fund. To his surprise he successfully sold the casks earlier this year for £225,000.

 

He now plans to pay off his mortgage and retire three years earlier than planned. He’s also said he will purchase a cask for his two children which he’s nicknamed “the cask of mum and dad”, expecting to generate a healthy return to help fund their future.

 

"For me personally, when it comes to investing it has to be a sensible strategy,” he told The Times. “I believe that if you just do what everyone else is doing, you’re never going to get a result like this. The fact that it’s tax-free… you can prove the indexes, and Scotch whisky isn’t going out of fashion. I think it’s a good, alternative strategy.”

 

While returns of 4,700 per cent are exceptional, and whisky investments are unlikely to help you retire early, the key principle to bear in mind is that whisky casks do naturally appreciate over time. As a general rule, the longer a whisky has been aged in the cask, the higher price it can command. That’s why we pay significantly more for a Macallan 18-year-old than a Macallan 12. If it’s a Macallan 25 you’re after, you’ll be looking at a four-figure price tag.

 

Parfitt’s story comes with the caveat that most investors will see much more modest returns. The vast majority of casks are unlikely to appreciate as much as those from the legendary The Macallan distillery in Moray. Investors would be wise to approach the cask market with a healthy dose of scepticism. You may have heard scare stories about cask whisky scams offering sky-high returns that later failed to materialise. As with any investment, it is vital to make sure you fully understand what you are paying for and steer clear of anyone promising get-rich-quick schemes.

 

Request your free Whisky Market Report to find out how you could profit from this rewarding alternative asset.

 

 

Sponsored by Tomoka Casks
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