Whisky investment terminology explained
The terminology of whisky investment
Investing in whisky is becoming increasingly popular as an alternative form of investment. Its potential for financial returns, combined with the opportunity to enjoy a unique and valuable product, makes it attractive to both novice and experienced investors. Investing in whisky can seem complicated at first due to the many specific terms and concepts involved. However, after reading this text, you will have built up a good basic knowledge to start investing in whisky. At Scotch Whisky Investments, we are happy to help you on your way with an overview of the key terms and concepts that are essential for successful whisky investments.
Single malt
Single malt whisky is a whisky that comes from a single distillery and is made exclusively from malted barley. Single malt Scotch whiskies are known for their diversity in flavors. Single malt whiskies are often considered the most valuable whiskies to invest in, due to their unique character and limited production.
Distillery
The distillery is the place where whisky is produced. The reputation and history of a particular distillery can greatly influence the value of whiskies they produce. Well-known distilleries with a long history of high-quality production often have whiskies that are highly sought after in the investment market.
Portfolio
A portfolio in the context of whisky investment refers to the collection of different whiskies that an investor owns. A diversified portfolio can include various types of whiskies, such as single malt whiskies, blended whiskies and limited editions, to spread risk and increase the potential for returns.
Limited edition
Limited edition whiskies are produced in limited editions and are often highly sought after by collectors and investors. These whisky can gain significant value as availability decreases, making them an attractive investment opportunity.
Bonded warehouse
A bonded warehouse is a warehouse where whisky is stored before excise duties and taxes have been paid. This offers advantages for investors, as the whisky can be aged under controlled conditions without having to pay taxes immediately. This type of storage can help to increase the value of whisky as it ages.
Quality management
Quality management in the whisky industry refers to the processes and systems used to ensure the quality of the whisky, throughout the production and maturation process. This includes everything from the selection of raw materials to the final bottling. Strict quality management is crucial for producing high-quality whiskies that are attractive to investors.
Angel's share
Angel's share is the part of the whisky that evaporates in the cask during maturation. This natural process reduces the amount of whisky in the cask, which can contribute to the rarity and value of the older whiskies.
Exponential growth
Exponential growth refers to a pattern of growth in which the value of an investment increases at an increasing rate as time goes on. With whisky, this can occur when the whisky gets older and is scarcer in supply.
Diversification
An investment strategy that involves spreading investments across different assets to minimize risk. In the context of whisky, this means investing in different types, ages and brands of whisky to increase the chance of returns and spread risk.
Investing in whisky yourself? That's possible at Scotch Whisky Investments!
Hopefully, with the explanation above, you are already a little more aware of some difficult terms that have to do with investing in whisky. Would you like to know more about investing in whisky? Feel free to Contact the specialists at Scotch Whisky Investments, one of the largest players in the international whisky market. Scotch Whisky Investments can also help you from A to Z if you want to start investing in whisky yourself. Request a brochure without obligation and discover all the possibilities!