JamesGamble

5 hours ago, Poet said:

Single malt whisky is delicious once you spend some time learning about it and trying examples from each region of Scotland.

While I'm not interested in it as an investment (in the current economic mess, I consider crypto to be a no-brainer over the next couple of years), I can see that the market for high-quality whisky will grow as more of the world continues to emerge out of poverty. A good single malt is one of life's true joys.

As an investment, you would need to have a pretty good idea of what you were getting into, and a high degree of trust that you weren't going to get shafted by hidden fees in ten years time. There is a lot you would have to research and double-check, such as who is liable if it is for some period kept at the wrong temperature and more liquid than expected evaporates. For a whisky enthusiast, however, it could be fun.

You make some excellent points, Poet. Cask Whisky is undoubtedly not for everyone, but as developing countries look towards the finer things in life, it will only continue to rise in demand, a demand which outweighs the Scotch Whisky industry supply. As for cryptocurrency, this isn't my field; I will leave that to the experts out there.

Being a UK product, the Cask Whisky is part of the consumer rights act. An extra £250 cost will incur if the customer instructs the investment company to sell at auction. At five years, the Cask is re-gauged and is recommended every five years after that. If the customer would like any additional re-gauges, then it can be arranged for £50. Think of a re-gauge as you would a car service; it will be part of the casks history and help the buyer make a decision on their offer when the owner is ready to sell. The final cost would be if the customer wanted to pay for extra storage and insurance at the end of the ten years. Currently, this is £50 a year and shouldn't cost more than £100, ten years from now. The high costs incur if the customer wishes to bottle the Cask, this is an option, but not one that we would recommend.

Some natural evaporation of the spirit from the Cask will occur, under a process known as 'the angels' share'. The Company is not responsible for any such losses. However, the Company will guarantee that evaporation will not exceed the standard 2% per annum, and in the event that evaporation does exceed this standard, the Company will replace the amount of spirit which has evaporated, which is over and above this standard. It is also insured against accidental damage, theft and spillage.

HMRC and WOWGR are both the entities overseeing all production, selling, packaging, and exporting any whisky in Scotland as this is one of their leading economies that brings in a lot of taxes. As for the warehouse and storage, because it is a bonded warehouse, the entities above are the regulators; a yearly audit is conducted to ensure everything is according to law and regulations.

5 minutes ago, ExpatOilWorker said:

What I'd the yearly cost of storage?

....or loss.

Whisky becomes more valuable with age. The main concern would be whisky falling out of favour with the masses, and it has been around for hundreds of years, so this is unlikely.

2 minutes ago, ExpatOilWorker said:

What I'd the yearly cost of storage?

....or loss.

Storage and insurance are built in to the cost, which is currently £50 a year.

2 minutes ago, worgeordie said:

So you are saying leave the Whiskey in bonded warehouse....forever ?

regards Worgeordie

No, the whisky is new pour so it needs to mature for three years before it can be classified as whisky. After the three years are up, the investment can be sold at any time. We would recommend the buyer to keep it longer than this of course, as it is insured and has ten years storage, at five years the cask will also get a regauge. In most cases the whisky would be sold at auction, blenders are always buying whisky,  it could be sold to a private collector, or the distillery might buy the cask back to keep stored in the warehouse for years to come. The cask would be kept in the bonded warehouse for any of these scenarios. Once sold the transfer of ownership will take place and the seller will collect their profit.

7 hours ago, adammike said:

As it's advertising whisky I assume it means it's from Scotland not from the USA.

Yes, that is correct, the investment is Scotch Single Malt.

4 hours ago, ExpatOilWorker said:

Are you allowed to advertise and promote alcohol in Thailand?

Advertising alcohol to serve in a bar or restaurant is not allowed and cannot be promoted. Cask whisky is an investment that stays in a UK bonded warehouse; it isn’t being promoted to drink. Whisky is sold as a commodity like gold and other luxury items.

8 hours ago, SiSePuede419 said:

What makes Cask Whisky an Attractive Investment?

 

Why, the number of people who think the #1 worst tasting liquor on the planet is something"good" to drink.

 

I challenge anyone to name a worse tasting liquor. 

 

Lao Khao is a delicate ambrosia compared to corn whiskey, ugh. ????

Whisky most definitely isn't for everyone, but there are people out there who live for it. I am relatively new to drinking Single Malt, and it has changed my opinion. I have found that if I appreciate the drink a little more, allowing it to settle instead of knocking it back, it isn't all that bad.

7 hours ago, jacko45k said:

This idea was tried with 'fine wines' some time ago. I seen to recall many lost money.

Yes, that is correct; people who invested in fine wine lost a fortune, an estimated £100 million, from failed companies. The difference with this investment is the customer owns the cask; the purchase includes insurance and storage up to ten years and can be extended should the customer wish to keep the whisky longer. In the unlikely event the distillery or warehouse goes bust, the customer owns the cask and therefore, it will be transported to a new warehouse.

You have to consider that whisky is so highly regulated in the UK, and HMRC will always collect its tax. Casks are stored in a UK bonded warehouse in Scotland. The warehouses are regulated by WOWGR (Warehousekeepers and Owners of Warehoused Goods Regulations), a license audited by the HMRC, allowing goods to be traded in a duty suspended bonded warehouse. The Whisky industry is worth £5.5 Billion a year to the UK and £3.8 billion in tax, around £4.7 billion comes from exports.

Once the owner decides to sell the cask, there are many options; however, if the owner chooses to move the whisky out of the bonded warehouse, tax and VAT apply; we do not recommend and can become costly.

2 hours ago, captainjackS said:

Although I would like to see and drink more good whisky, I think it would be difficult to succeed financially in any alcohol-related business in Thailand if you are not part of the "in crowd".  Regulations and tax on imported goods + regulation and tax on alcohol + regulations to limit non-thai citizen business opportunities looks like an infinite uphill battle in Thailand.  I don't know about the environment in other Asian countries.

Hey Captain Jack, 

I have been informed that Bladnoch will soon be distributed in Thailand, which I am looking forward to getting hold of, it should be available within the next couple of months. This is one of the casks we have available to us. I do agree with your post though regarding tax and regulations. However, this is an investment which will be stored and left to mature in a HMRC bonded warehouse in Scotland.

Whisky can take many years to mature and by offering cask whisky to outside investors it creates a cash flow for the distilleries. In most cases whisky becomes more valuable with age, so the longer it is left, the more it will be worth when the owner decides to sell.

Going back to your post, we would advise to sell the cask before it is bottled, as this is where tax and VAT will be added. If the whisky is sold while it is still in the bonded warehouse then it is exempt from capital gains tax and Vat in the UK. 

Thank you for your opinions, I understand certain investments are not for everyone. For those of you who have commented, may I ask have done your research, and why you don't think think cask whisky is a good idea?

May I ask why you don't believe in cask whisky as an investment, Albert?