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Whisky Investment Guide
Whisky Investment Guide
Frequently Asked Questions
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Whisky Investment Guide
Frequently Asked Questions
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Your Questions Answered
As a new asset class to many, whisky cask investment will of course come with questions. Below are a few questions that we are frequently asked by people considering investments into single malt casks. If you require any additional information, please feel free to contact us and speak with one of our experienced consultants.
01
HOW DOES THE STORAGE WORK?
Scotch casks have to be kept in Scotland under bond by law. Whilst in these HMRC regulated warehouses your cask will be kept in the best conditions for the whisky maturation process. The cask will also be monitored regularly by the warehouse staff and can be re-gauged at any time for a small fee.
02
Can I view my cask?
You will be able to visit the distillery housing the cask via the distillery’s tourist centre. Most HMRC bonded warehouses will allow you to actually see your cask although a 200 year old cold, dark and damp warehouse in the Highlands is not everybody’s idea of fun!
03
How do I arrange insurance?
You don’t have to. From the moment you purchase through us until the moment you either sell out or move the cask to another facility or account we will cover the entire cost of the insurance of your cask.
04
WHAT ARE THE TYPICAL INVESTMENT SIZES?
Investment sizes range from £8,000 at the lower end all the way to £3,000,000. Typical trade sizes are around £30,000 – £50,000.
05
HOW LONG AM I EXPECTED TO HOLD THE CASK FOR?
We usually recommend a minimum of a five year hold, ranging up towards ten years.
06
CAN I SELL OUT AT ANY TIME?
We will always listen to your instructions with regards to your cask. We understand that your circumstances may change and that you may need to sell out earlier than five years. Please instruct us if this happens and we will discuss the best strategies at that time.
07
DO YOU WORK WITH ANYBODY I MIGHT HAVE HEARD OF?
Alongside sourcing casks for some of the UK’s wealthiest people, we work alongside Charles MacLean, the world’s most prominent whisky author and critic with eleven whisky books in publication, including the industry’s standard work on whisky brands. We have also featured in both The Observer and The Telegraph.
08
HOW DO I EXIT WHEN I WANT TO SELL OUT?
When you instruct us to sell you out we will typically go through one of six routes:
- Sell to another client via our intra-client brokering service
- We trade the cask on the open market to a cask broker or collector
- We purchase the cask back ourselves
- We sell the cask through our own online auction service
- We sell the cask through a third party auction house (Bonhams etc)
- We bottle the stock for you and release it to the retail market achieving maximum profit (an avenue normally reserved for rare and old casks)
09
CAN I SELL OUT THROUGH ANOTHER COMPANY/BROKER?
The simple answer is yes. There is a huge demand for cask Scotch and the secondary market is a liquid one. However, we sincerely hope that, should the cask we recommended to you substantially increase in value, you will instruct us to realise those profits on your behalf. This allows us to benefit from the 10% commission on the profits as specified in our terms and conditions.
10
CAN I MEET OTHER CLIENTS AND THE MANAGEMENT TEAM?
Of course. We hold around six meetings per year, normally at London’s Rosewood Hotel, where clients old and new get to mix, meet with our management team, and to experience a whisky tasting class normally held by “the world’s foremost expert on whisky”, Charles MacLean.
11
HOW CAN I BE SURE THAT YOU ARE THE RIGHT COMPANY TO WORK WITH?
When investing your hard earned cash, choosing the right company has to be of paramount importance. Aside from liking the person you are dealing with, you need to know that they are an approved and accredited organisation. The following can be said of us:
- We are members of the Wine and Spirit Trade Association
- We are members of the Liv-Ex
- All of our brokers have been educated at the Wine Spirit and Education Trust
- We are certified by the Independent Commissioner’s Office
12
WHAT FACTORS DETERMINE THE VALUE OF A CASK?
Year of production, type of barrel, distillery, age, OLA (Original Litres of Alcohol), RLA (Remaining Litres of Alcohol) and ABV (Alcohol by Volume).
