Jay Bradley Speaks with Bloomberg

Nicola

September 20, 2021

Co-Founder Jay Bradley Discusses Whiskey Investment on Bloomberg

At the Whiskey & Wealth Club, we’re paving the way for a new type of investment. While it may be more traditional to lay down rare wines or buy up rare dusty bottles, we offer the opportunity to invest in casks of new whiskey.

Co-founder Jay Bradley recently spoke to Bloomberg about how cask whiskey investment works and some of its benefits.

As Jay explained in the video, there is a twofold benefit to investing in cask whiskey. The distiller is able to cover their costs as the whiskey ages, and you’re able to make a profit when you choose your exit strategy. There’s another benefit, too – a whiskey cask is an asset-backed investment. This means that the investment you’re making is backed by a physical asset, rather than a speculative future or another, more risky way of investing.

Despite a volatile stock market throughout 2020, the market for cask whiskey has remained remarkably stable. It’s very unlikely that a cask will sell for less than its initial investment, and branded whiskey casks inparticular have a much greater potential for seeing significant returns.

There are three primary factors that contribute to a cask’s value:

  • Age – how long has the cask been aged?
  • Brand – was it made by a premium supplier or mass produced?
  • Amount – how much was produced in the given year?

A branded cask is more likely to meet all three of these criteria, and therefore more likely to have that increased potential for a significant increase in value at the end of a decade-long investment term.

As investors look to diversify their portfolios with more stable, asset-backed investments, the market for cask whiskey continues to grow. If you’re interested in learning more about investing in ‘liquid gold’ with the Whiskey & Wealth Club, give one of our Wealth Managers a call today.

In our last post, we gave you a preview of what it can be like to join us on our distillery tours. Or take a look at the next post in the series with a tour of our Richmond office.

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