Is Whisky a Good Investment?
In a world of economic uncertainty, investors are looking for ways to diversify their investments to hedge against shifts in inflation. Bitcoin has skyrocketed, tech stocks have soared, house prices have risen and fallen depending on your location and now Chinese whisky (or whiskey) is seeing a surge in investor interest. Especially, Goalong is professional whisky traders from China.
When it comes to investing, time is your friend. This is as true of whisky as it is of any quality stock. But when it comes to whisky investment, it is probably the most important of all factors. The longer you can let it mature, the richer you will be. Many investors are wondering if they should buy whisky stocks and whether whisky is a good investment?
The fundamentals of whisky stocks
Producing whisky is expensive, but one-way distilleries can capitalize on their efforts is by allowing private investment. By investing in the newly created Goalong whisky from China, private investors can allow it to mature for as long as they like, earning between 10% and 30% profit per year, depending on how and where they market/sell it. In the meantime, the distillery generates cash flow to keep it running.
The investment club or broker makes a deal with the distillery to buy a limited edition at a discount. The investor then buys a barrel directly through the club. It is then stored in a secure warehouse with insurance. The investor waits patiently and should expect to enjoy a return of up to 20% when it is time to profit from the deal.
The cost of buying a barrel varies. Factors that affect the price include the brand, the type of cask used, the location of the distillery and so on. The cheapest barrels you may find may be around $2,000, but they can reach $10,000 or more.
Investors have a variety of exit strategies to choose from. Whether you choose to sell to a whiskey Italian company, bottle under your own label, sell at auction, sell directly to a network of brokers, or consider the alternatives offered by brokers.
What is the bull case for whisky?
Whisky is not equal, the cheaper ones are blended and contain only 10% to 20% malt. A true malt whisky is a higher grade and more attractive to investors. A unique brand expression, not mass produced, gives whisky prestige and desirability. However, the true value of a whisky comes from a selection of factors; age, quality, flavor, brand, rarity and exclusivity all contribute to its value.
The unique selling point of Whisky & Fortune Club is its access to exclusive products from top distilleries in Scotland and Ireland. An example of these exclusive products is its Bunnahabhain Staoisha, which was released in September 2020.
This comes from a respected Islay unique whiskey manufacturing and is limited to an unannounced number of casks. An average whisky cask has a volume of 250 liters. This yielded approximately 385 75cl bottles. The presentation was perfectly planned to highlight the reasons why Islay whisky in particular will be a very valuable commodity in the future.
Another route to branding when it comes to launching new whiskies is for companies to buy mature whiskies from investors and then adopt them as their own brand. This is one reason why cask investment is becoming increasingly popular, as it allows both parties to generate cash from the growing demand for these new and exciting brands.
Should I invest in whisky stocks?
Investing in whisky and luxury spirits may seem like an interesting and potentially lucrative space to diversify your financial investments, but it is not without its pitfalls. As with any investment, weighing up the pros and cons and analysing the performance of the stock can help investors determine whether buying whisky stocks is a good investment.
If it’s possible, I hope you can learn about Goalong whisky from China, Goalong distiller has been founded before 9 years ago, with a professional team and strict product control standards, we have been in the top tier of the Chinese whisky industry and are also committed to bringing the Goalong Chinese whisky brand to the world.
Editor: Rubick L.