15 Reasons Smart Investors Buy Into Whiskey

INVESTING
There are several different ways to invest in whiskey — from purchasing bottles to buying and storing full casks to getting into stocks.
Updated April 17, 2024
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You may have heard some chatter about diversifying investments by purchasing high-end alcohol like whiskey and wine — but is investing in bottles of booze a smart money move?

Experts say it can be, and there are many good reasons that investing in whiskey can be both a fun and smart way to build wealth.

Here are 15 reasons to consider investing in whiskey.

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Whiskey may diversify your portfolio

Parilov/Adobe barman puts ice into glass

No matter how you invest in whiskey — whether you invest in casks through an alcohol investment platform or research and purchase bottles on your own — it’s a way to help diversify your portfolio and avoid having all your money tied up in intangible investments.

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It could mean investing in something you enjoy

Daniel Krasoń/Adobe exclusive membership card on table

Many of us want to make wealthy money moves, but talking about stocks, bonds, and crypto can become quite tedious for many people.

These days, many consider tasting and buying rare or high-end whiskies a hobby. Investing in a few bottles from a distillery you love is a great way to turn a hobby into a lucrative future.

Whiskey is a growing market

Peter Austin empty crystal glass

Whiskey has been around for centuries (that we know of), and it’s been popular pretty much the whole time, which could make it a safer investment than many more fleeting products.

Moreover, the alcohol investment platform Vinovest predicts that the whiskey market will continue to grow and reach $109 billion globally by 2025.

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History shows it has performed well

weyo/Adobe craftsman puts finished wooden barrel

Vinovest reports that whiskey has performed well over the years, experiencing average annual returns of about 10% for private investors.

Of course, there’s always a risk involved with any sort of investment, and past performance doesn’t guarantee future results. However, history is on your side when investing in rare or vintage whiskies.

It could be recession-proof

Richard/Adobe two glasses of whiskey

While an economic recession can send the value of all sorts of investments spiraling downward, whiskies from top-notch distilleries often retain their value even during times of economic uncertainty.

Rare bottles can net big bucks

Alex Shevchenko/Adobe dollars leather wallet and whisky

Getting rare and very sought-after bottles of whiskey for your collection may cost you more upfront, but these hot commodities can net hundreds of thousands of dollars at auction events. 

A bottle of 1926 Macallan Fine & Rare Aged 60 Years even went for $1.9 million recently.

It may be more accessible than other investments

Atlas/Adobe three male hands holds glasses

Getting into whiskey investing may be easier than navigating complex stocks and trading systems, particularly for those who already have an interest or knowledge about which distilleries and products are in high demand.

It outperforms many other collectibles

Parilov/Adobe ice cube and whiskey

According to the Knight Frank Luxury Investment Index, whiskey performs better than many other products people tend to collect or invest in as passion projects — such as cars or high-end watches.

It’s a tangible investment

pavel siamionov/Adobe large ice cube into glass

Many investment opportunities feel abstract. You’re told so-and-so stock is worth a big investment, and you’ll see money grow over time. 

But with bottles or casks of whiskey, you can see and hold your investment — and easily transport it around should you need to (though proper storage is another factor to consider if you’re considering investing).

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You can start small

SOMKID/Adobe whiskey on a wood bar

You don’t have to go for the most expensive bottle or cask of whiskey to begin your investment journey.

While the stock market and other investments may fluctuate during uncertain times, the value of luxury goods tends to increase, meaning even if you start small, it may still be worth it.

Many different investment opportunities exist

fesenko/Adobe putting ice cube using twezzers

While you can buy stocks directly from companies that own some of the world’s most famed whiskey brands, you can also invest by purchasing single bottles or entire casks of whiskey (though it’s important to ensure you can properly store a cask before purchase).

It could provide a hedge against inflation

Alexandr Steblovskiy/Adobe glass of whiskey and barrel

Putting money into whiskey may be less risky when it comes to inflation since it’s a commodity. As the prices of ingredients needed to make whiskey rise, the value of the product will likely increase with them.

It’s has staying power (and popularity)

Mikhaylovskiy/Adobe glass of whiskey and smoke

Drinking culture has taken a turn in recent decades, with many younger people getting more interested in the process of distilling particular batches of things like beer, wine, and whiskey.

Experts suggest this popularity will keep growing, so now may be the ideal time to invest.

It’s a unique way to establish generational wealth

Александр Кузьмин/Adobe poured glass of whiskey

Investing is one way to create generational wealth. Some may purchase a valuable bottle or cask of whiskey now with the intention of passing it on to their children later.

In certain cases, you may even be able to sell a whiskey collection to help pay for college or the down payment on a home.

If all goes wrong, you can have a drink

Dmitry Ersler/Adobe glasses of whiskey on table

Lastly, this is something your other investments just can’t offer. If things do go belly up, you can crack open your investment and make yourself a stiff drink.

Bottom line

razoomanetu/Adobe whiskey in an oak barrel

If you take the time to learn about distilleries, vintages, and money-making opportunities, investing in whiskey could be just as lucrative as putting money into other assets. 

However, it’s always important to keep in mind that with that potential reward comes potential risks.

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  • Earn more interest on your uninvested cash with 5.00% APY (as of April 12, 2024)
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Author Details

Laura Gesualdi-Gilmore Laura Gesualdi-Gilmore is a seasoned freelance writer who also teaches writing courses at Rutgers University. She's based in Jersey City and enjoys travel, live music and, of course, spending quality time with her pup.

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