Cask Trade reports best month ever and increased interest from Asia as investors seek a safe haven amid market chaos – Scotch Whisky News
Cask Trade reports best month ever and increased interest from Asia as investors seek a safe haven amid market chaos
Global markets have suffered huge losses and as the COVID-19 epidemic continues, assets across the investment spectrum have depreciated ahead of what is likely to be a global recession.
In these uncertain times, investors are looking for a safe haven. Cask Trade, a London-based business selling whisky by the cask, has reported a huge increase in demand and recorded its best month ever in March and has had a big uptake in interest from Asia, in particular Hong Kong and Singapore.
Owner of Cask Trade, Simon Aron, says casks of whisky are fast becoming the investment choice for people looking for an alternative that is less uncertain. “Whisky is one of the only assets that appreciates the older it gets and it is still completely detached to financial markets, which makes it a safe haven for investors.”
“Asia has really woken up to whisky, especially since the economy in Hong Kong, Singapore and China gets back to some sense of normality,” says Simon, who adds: “Our new Asian customers are very enterprising. They have a love of whisky so they keep some, bottle some of the casks they are buying and generally trade others. They enjoy our keener prices and transparent way of business, as well as our excellent stock which I believe is the best in the world.”
Whisky on the rise
In the last 10 years, whisky has far outstripped the more established alternative assets such as art, cars, wines, watches and jewellery and is now one of the most coveted objects of desire. Last year, whisky was one of the top performing luxury investments.
Results of The Knight Frank Wealth Report’s new unique luxury investment index reveals whisky was one of the most coveted objects of desire in 2019.
The report says Rare Whisky has grown in value the most over the last 10 years at +564% and increased by +5% in the past 12 months; and states casks remained in huge demand. By comparison cars have seen an increase of 194%, art by 141% and wine by 120%.
Aron, who has received calls from hedge fund managers in New York looking for financial modelling on large portfolios of cask whisky, adds: “Through any economic downturn alcohol sales remain constant and even go up.”
Ten reasons to invest
- Cask Trade boasts the strongest stocklist of cask whisky on the market
- Confident enough in the appreciation of whisky that Cask Trade has bought even more casks than ever before
- With the markets down, currency favours the euro (€) and dollar ($). Simply speaking, casks of superb single malt whisky are the most fantastic way to balance your medium and long-term investment
- Almost 100 casks in stock
- 22 different distilleries from all regions
- All budgets and styles catered for
- 14 sherry butts from 5 different distilleries
- Younger maturing cask
- Old and rare casks
- Vintages from 1978 to 2016
As well as buying and selling casks to private owners, investors and bottlers, Cask Trade also hosts quarterly online auctions via its online platform auctionyourcask.com. The next auction goes live on 14th August and will run until 23rd August. To register your interest as a bidder visit https://www.auctionyourcask.com//members/login to sign up.
NOTES:
Founded in 2018 by Simon Aron in partnership with several of the world’s foremost whisky masters, including Keeper of the Quaich Sir Colin Hampden-White, Cask Trade buys and sells exceptional cask whiskies. The company is unique because it only sells casks it owns outright, and it only sells whole casks: it is not a whisky cask broker and it does not offer fractional sales.
A passionate whisky collector for more than 20 years, Simon Aron suffered many false promises from whisky investment companies and this drove his ambition to create a real and trustworthy market place for whisky collectors and investors, and bottlers:
The company’s casks are held in the best HMRC bonded warehouses, regularly visited and approved by Cask Trade whisky masters. All stock holdings have a complete paper trail.
- Delivery orders from supplier to Cask Trade
- Invoices for transfer of ownership, storage insurance, re-gauging, sampling or movement
- HMRC-issued WOWGR (warehouse keepers, warehouse premises, owner of goods and registered consigners): a fully regulated and closely monitored license requiring due diligence on suppliers as well as customers.
- HMRC-issued AWRS Alcohol Wholesaler Registration Scheme: Licenced to wholesale, bottle and retail.
Included in its extensive list of customer services, Cask Trade’s rigorous processes means that the company will guarantee to buy back from its clients the casks they buy from and have had managed by Cask Trade. It also offers…
- Regular sampling and re-gauging of casks
- Re-racking (sherry wine, port etc)
- Estimates of bottles and strength in cask (effects of angels’ share 0ver years of maturations)
- Financial modelling for each cask based on age and rarity with estimated % returns
- Costings for bottling, labelling and shipping (duty & tax)
- Regularly updated whisky investment guide which includes statistics from two authoritative third parties (independent of Cask Trade)
- Cask Trade will arrange for clients to receive samples of their whiskies and visit their barrels(s), upon request – wherever possible.
Cask Trade has started the first live auction website dedicated to exceptional whisky casks: auctionyourcask.com.
Hosted four times a year and helping private owners/investors sell their cask to independent bottlers and other investors all around the world. All casks will be re-gauged ready for auction and a full 70cl sample will be drawn so that bidders have the opportunity to try the whisky before they buy. – Wherever possible. We validate all the sellers and confirm proof of ownership and the history of the cask enabling bidders to safely buy. With complete transparency and no sellers’ fee we can offer you the actual hammer price. Our low buyers’ fee of 15% + VAT will offer the opportunity to buyers, trade or private, to buy rare casks.
https://www.auctionyourcask.com
Whisky Price Growth
Results of the recent Knight Frank Wealth Report’s new unique luxury investment index revealed whisky was one of the most coveted objects of desire in 2019.
The report out in February 2020, says Rare Whisky has grown in value the most over the last 10 years at +564% and increased by +5% in the past 12 months; and states casks remained in huge demand. By comparison cars have seen an increase of 194%, art by 141% and wine by 120%.
https://www.knightfrank.com/wealthreport
Data collected by Rare Whisky 101 suggests the four-year growth from December 2014 in rare whisky has increased over 160%, compared to just 2.47% for the FTSE 100. https://www.rarewhisky101.com/indices
The same report by Rare Whisky 101 claimed via the BBC that they had performed a controlled test of 55 rare bottles, of which over a third were fakes.
https://www.bbc.co.uk/news/uk-scotland-scotland-business-4656670
