Whiskey as an Investment

It’s true, investors are scooping up rare whiskeys. The market for American Whiskey is newer than the market for Scotch or Japanese whiskey, and as a result there are significant opportunities for appreciation.

For instance, buyers of the infamous 23-year-old Pappy Van Winkle bourbon in 2010 have realized a 10-fold increase in their investment, assuming they haven’t consumed it. Whisky Advocate magazine, which tracks the market, says overall price appreciation has been more modest, in the mid to high single-digit numbers, a favorable comparison to the S&P 500 which, over its lifetime, has produced an average annual return of about 9.8%. However, if you dip your toe into the water of investing in spirits, be careful: counterfeit bottles are a serious problem.*

David R. Evanson is a financial journalist in Philadelphia.

* Entis, Laura, (September, 2017). How to Invest in Whiskey. Forbes. Retrieved November, 2019