A Beginners guide to collecting and investing in Whisky – Part 2

In this instalment we’ll consider the scenario that you’ve made a conscious decision to start collecting or investing in whisky. You’ve already made decisions about what whiskies, distilleries, vintages that you’d like to feature in your portfolio. You’ve also registered with auctioneers and are primed and ready to enter the bidding – so what comes next?

FAQs

Familiarise yourself with the Frequently Asked Questions (FAQs) regarding bidding that should be available from each auctioneer. Now, we’re not talking about the charges, which we covered in the first instalment. No, what needs further consideration is the type of bidding software utilised by the auctioneer.

BIDDING FORMAT

Take for instance you’re first in with a bid, all anxious and wanting to get things underway. The bottle has no reserve and bidding starts at £5. You’re prepared to pay £100. Now with some auctioneers the winning bid will show as £5 and you’ll have the safety net of being able to sit back and automatically bid right up until £100 is breached. This is known as proxy bidding software and is featured on some auction websites including here at Just-Whisky Auctions (JWA). A different approach is also utilised by some auctioneers whereby your maximum bid is immediately taken and displayed. In this scenario the bid would immediately show at £100, meaning to secure this bottle you may have bid again.

There are pros and cons to both methods so being aware of what format bids are taken in advance is advisable. My own personal preference is the proxy format as a bidder and regardless of what method the auctioneer features, in this day and age you should be informed almost immediately by email if you’ve been outbid or you can access the auction via your mobile phone.

Some may bid when the bottles are just made available knowing they’ll be outbid at some point. The reasoning behind this is to create a watch list against their account that can be easily checked if the website doesn’t feature a watch lot option.

RESERVES

Lots may have a reserve price and these are set by the seller in advance. A good auctioneer will discuss reserves with their client and set an expectation whether what they are looking for is realistic. The reserve is there to protect the seller who will only part with the bottle when a minimum price is met. Of course there is nothing to stop the seller going against the auctioneer and setting their own reserve ignoring any advice. Hence why the auctioneer will charge a reserve fee to cover the entry of the lot in the auction; otherwise it’s a free listing for something that might not sell.

If a reserve has been set on a lot then it should be highlighted as part of the lot description. Unfortunately some auctioneers do not highlight this so your bidding may be in vain even if you place the highest offer. In these situations the auctioneer may act as a negotiator between you and the seller after the auction has ended. Personally I have acquired bottles through such discussions and here at JWA the lot will highlight when a reserve is placed and when it has been met.

Another method is to open the auction at the reserve level. For instance the seller will not part with the bottle unless his minimum price of £800 is bid. Therefore the auction bidding starts at £800 rather than £5.  While this method protects the seller it can dissuade others from bidding until the very last minute or at all. On the flipside at least you know what you have to bid to remove the reserve.

CLOSING AUCTIONS

Just hold on for a moment as you’re almost ready to bid! Another aspect to consider is how auctions close. Every auction has a closing time stated but auctioneers can adopt different methods prior to closing a lot. Again, it is worth being aware of what you will be dealing with in advance.

Some auctions will close at the specifically advertised time although this isn’t as common as you think. Other sites may keep an auction running as a complete whole entity until the bids dry up. This can be annoying to a certain extent, as you’re faced with babysitting a bottle to ensure you are successful. Literally you can be sitting online several hours after the auction should have ended.

Another approach is one utilised here at JWA and we believe this is fairer to buyers and sellers alike. If a lot receives a bid within the last 5 minutes then a time extension will appear. This means that if a lot doesn’t receive a bid within those dying moments then you’ll have won the lot when the auction is supposed to end. However say if a bid does come in then a 15-minute countdown for that specific lot appears. If no further bids are entered within this set period, the highest bid wins.  

EXAMINING THE LOT

Now we’re almost ready. You’ve ticked all the boxes and know what is expected of you as a bidder in the auction. You’ve identified a bottle and before bidding please read the description carefully and review the photographs. Look for anything that may affect the value and for older bottles the auctioneer should comment if the fill level is below the norm – this could suggest poor storage or a weaker seal. The importance of provenance is only going to increase in the coming years. Each bottle in my personal collection is documented and recorded as to where the bottle was purchased, when, the price and the original receipt/invoice is archived.

If you have any concerns or questions regarding a lot or a more detailed photograph then contact the auctioneer before bidding. Good customer service should apply to sellers and prospective buyers alike.

If you follow all of these steps then you’ll be better prepared to participate in a whisky auction and remember it can be an enjoyable experience! In the third part of this feature we’ll look at some tactics and the importance of not getting carried away during an auction.

Part 1 can be found here

Tomatin 30 Year Old
All good drams must come to an end, including this newsletter’s choice selection of single malts.

A firm favourite, Tomatin 30 Year Old is no longer being bottled.
Tomatin 30 Year Old $220.66

Come and see us at the Lonach Highland Gathering on Saturday the 23rd August…. 

…..for a wee dram and buy your exclusive bottle of Lonach 2014 Single Malt.

We are hosting the “Whiskies Of Scotland” whisky marquee where you can taste free samples from distilleries such as Benriach, Benromach, Glendronach, Glenglassaugh, Tomintoul & Glencadam. Also exhibiting their portfollio of whiskies are Duncan Taylor Scotch Whisky, Black Bull Blended Whisky & independant bottlers Dougas Laing.

And of course our own exclusive single malts label “Whiskies Of Scotland”.  

Slainte, Ronnie Routledge.

Springbank 21 year old single cask “Renegade” is now available to order at Loch Fyne Whiskies!

Specially selected and bottled by Mark Reynier, the former owner of Bruichladdich Distillery.

Springbank aficionados will know that a 21 year old Springbank of any form is rare enough at the moment, but this incredibly unique bottling goes a step further and offers an opportunity to taste the influence of different maturation environments.  This single cask of Springbank was matured for 13 years at Springbank and then moved to the warehouses at Bruichladdich for the remaining 8 years of maturation.  With Bruichladdich being much more exposed to prevailing Atlantic winds and foreshore influences than at Springbank’s warehouses in Campbeltown, some additional “maritime” influences have been imparted to this already exceptional whisky.  To add to its wonderfully complex style the whisky has been matured in a glorious sherry hogshead, resulting in a richly flavoured rare gem.

Springbank whisky is widely classed as one of the most collectable single malts in the world and this limited edition offers collectors an exciting opportunity to add to their collection.

One of only 219 bottles ever produced.
Drawn from sherry hogshead number 118.
Bottled at 46% volume, non-chillfiltered and with no added colouring. 

Click here to buy – £250

* = £3 discount for first timers and members. Membership costs £10 for 13 months.

Walking Tour of Edinburgh Sunday 24th August meet at 3pm outside Thomson’s bar, Morrison St, Haymarket £28/25*

We’ll visit a few sites of past distilleries starting at Caledonian then continuing down the Water of Leith. The story of whisky in Edinburgh will accompany the walk and drams. An updated written history will be available.

Caledonian 30yo refill Bourbon barrel cask strength SMWS

Glenkinchie 24yo 49.2% Bourbon hogshead Cadenheads

EH10 blend 40%

Queen Anne blend bottled in the 1970s

North British 24yo 46% 1989 -2014 Bourbon barrel 192 bottles Cadenheads

+ an optional mystery dram for a donation towards Marie Curie

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P/O/U/R/S 28th August 7.30pm Kilderkin, Canongate, Royal Mile, Edinburgh £to be confirmed

Spirit of Freedom 30yo 46% blend bottled to commemorate the 700th anniversary of Bannockburn

Glenfarclas 105 60%

Something peaty

Springbank 14yo refill sherry butt local barley bottled for the 10th anniversary of The Springbank Society

Auchentoshan 24yo single cask cask strength Cadenheads

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Future themed tastings: a vertical Glendronach tasting, Bottled at the Distillery No.3, sherry casks and Canadian whiskies.

This week Joe Ellis reviews the Darkness Benrinnes 15yo PX Finish Master of Malt bottling. 

http://youtu.be/8f6FqLQJFic 

http://Twitter.com/whiskytube

United States – Bourbon and Rye

• Belle Meade Sour Mash Bourbon 750ml – 0 available ($39.99)

• Stranahan’s Colorado Small Batch Whiskey 750ml – 4 available ($54.99)

• Slow Hand White Whiskey 750ml – 5 available ($29.99)

K&L Wine Merchants
http://www.klwines.com
Phone: 877-KLWines (toll free 877-559-4637)
Email: wine@klwines.com
San Francisco, Redwood City, Hollywood CA

“If a cask is missing a certain zing or surprise, we use as many different oak casks (including different oak species) to produce some truly unique and truly outstanding whiskies; Exclusive Malts in Exclusive Casks Creating an Exclusive Range.”

www.ralfy.com talks about the merits of the Scotch Malt Whisky Society with Whisky Review 480 – S.M.W.S. Whisky 127/5

Auchentoshan Three Wood – Tasting Review Auchentoshan distillery is located at the foot of the Kilpatrick hills on the outskirts of Clydebank, West Dunbartonshire. It is one of six distilleries to be found in the Scottish Lowlands. It was built in 1800 and changed hands multiple times before being bought by Eadie Cairns in 1969, who completely rebuilt the distillery. In 1984 he sold the distillery to Morrison Bowmore.

Unlike many Scottish distilleries, Auchentoshan practices triple distillation, allowing the spirit to distill for a third time rather than twice; giving its whisky a more delicate and sweet flavour than most Scottish distilleries and Auchentoshan Three Wood is no exception.

Auchentoshan Three Wood gets its name from the triple cask maturation it undertakes during its creation. It starts its maturation journey in American bourbon casks, before migrating to Spanish Olorosso Sherry and finally settling within Pedro Ximenez Sherry casks. It is these final two sherry casks that give this whisky its bold rich appearance and sweet flavour.

 On The Nose:

Dark fruits coated in brown sugar, warm, comforting and rich.

On The Palate:

Those dark fruits burst with flavour, joined with more festive tastes – nuts, cinnamon and citrus zest; still the whole experience remains sweet and luxurious.

The Finish:

Long and lingering oaky and sweet.

Auchentoshan Three Wood is a lovely dram, perfect for those colder nights when all you want is to be out of the cold and warm by the fire. Having been matured in three separate casks, two of which were ex-sherry, there is plenty of rich flavour to be discovered here, and one sitting is certainly not enough to explore all. This is a very distinctive whisky and one that I am sure will make itself at home within your collection.

Buy a Bottle of Auchentoshan Three Wood Today