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Looking for an alternative investment opportunity?
We asked The Balvenie, one of Scotland’s best-respected malts to
provide some tips on buying and enjoying single malt Scotch whisky.
With interest rates low and the stock exchange performance down,
many people are looking towards alternative investment
opportunities. One possibility is Single Malt Scotch Whisky. Whisky
auctions are becoming more common (Glasgow now hosts three a year),
reflecting the rise in interest in single malts and in turn, smart
distillers have been quick to identify the value that lies in their
warehouses, resulting in an increase in the numbers of old, rare and
collectible bottles being launched on to the market. Although there
are probably only a few hundred serious whisky collectors in the
world, the number of people dabbling in malts as a hobby, and as an
investment is rising rapidly.
Look to the long-term
Buying a bottle of single malt is unlikely to deliver a quick return
and should certainly be regarded as a speculative rather than a
guaranteed investment. However, if you are happy to pay your money,
put your bottle in safe storage and then sit back for 10 to 20
years, the returns can be good. Plus there is the huge added benefit
that if your chosen malt doesn’t rise in value as much as you had
hoped – you can always drown your sorrows in the pleasure of
drinking it.
The good news is that some bottles have performed particularly well
– for example an 18 Year Old Single malt distilled in 1973 and
matured in two rum butts. The resulting 800 bottles (released in
1991) originally sold for around £75 but are now worth over £500. Or
a 1964 Single Malt matured in sherry casks which was bottled in
limited quantities (2200 bottles a time) in 1993, 1994, and 1995.
The original cost was again about £75 but a bottle is now worth
around £800 (a 1000% increase). A far better return than you could
get by putting your cash in the bank.
Best Buys
What to look for when deciding what to buy depends primarily upon
your pocket. With a budget of a few hundred pounds, watch out for
bottles with unusual packaging for their distillery. Older bottle
shapes or unusual labelling can make a whisky collectible. For
example, you can try to track down a Glenfiddich Straight Malt – 8
Year Old which dates from the 1960s (around £300) or The Balvenie 8
Year Old in a triangular bottle (around £160).
There are several factors that contribute towards making a single
malt worth collecting and these include:
Age: In general the longer the whisky has been in the cask, the more
it is worth. Several distilleries offer single malts aged 50 years
or over and each commands a price tag of thousands. The oldest
single malt in the world is Glenfiddich Rare Collection 1937 – a 64
Year Old which retails at £10,000.
Limited editions: Whiskies where only a certain number of bottles
are produced, e.g. single cask bottlings from a particular year. As
bottles are consumed or broken, those that remain can command a
higher value.
Malts bottled years ago: Even a relatively young whisky, e.g. The
Balvenie 8 Year Old, can be a worthwhile investment if it was
bottled a while ago. The market for single malt was pioneered by
Glenfiddich in the 1960s when the first bottles were exported to
England. Prior to this single malts were used mainly within blended
whiskies – so whiskies bottled prior to the 60s can make a decent
return.
Bottles from The Balvenie
The Balvenie produces a range of single malts and last year released
what is anticipated to be its most collectible product to date – The
Balvenie Cask 191 – a 50 year old malt and the oldest ever to be
released from the distillery. With only 83 bottles in existence it
fulfils both the age and rarity requirements of a good investment.
However, it also commands a £6,000 price tag.
More affordable is The Balvenie Vintage Cask. Each year The Balvenie
malt master noses all of the casks aged over 30 years and chooses
one exceptional example to bottle. Vintage cask products from The
Balvenie include 1964, 1967, 1968 and the recently released 1972,
all with original retail prices of around £299.
There are also, however, some bottles of The Balvenie that fall
within most people’s budget and may be “ones to watch”. The Balvenie
Portwood 1989, The Balvenie SingleBarrel 25 Year Old and The
Balvenie Islay Cask 17 Year Old all stand as good a chance as many
malts of holding and increasing their value over time.
In the nose
However, one of the greatest pleasures in collecting whisky is
undoubtedly drinking it. So, if instead of keeping it the cupboard
you choose to share your bottle of The Balvenie with friends, here
follows a few tips on how to get the best from nosing and tasting
single malt.
All you need to experience the pleasure of malt whisky are a few
enthusiasts, some suitable glasses (ideally tulip shaped), note
paper and the whiskies.
With a little time and practice you will soon be able to pick out
the differences and the similarities between whiskies.
To start, add a small amount of water to release the bouquet and
flavour of the whisky. Cover the glass with the palm of your hand
and shake firmly but carefully. Put your nose deep into the glass
and take two sharp sniffs.
When “tasting” malt whisky, you simply add a small amount of water,
sip from the glass and swirl it around in the mouth before
swallowing.
It is the aroma, the colour, the body and texture that are the most
important characteristics of malt whisky so look out for the
following qualities:
• Overall fragrance, is it light, fresh,
pungent, fruity, malty smoky?
• Smoothness, is it pleasant, mellow,
silky, creamy, rounded, gentle, sharp?
• Sweetness, is it rich, fruity, bitter,
spicy, seaweedy, pronounced, honey?
• Colour, is it pale, dark, rich, light,
attractive, mellow?
• Complexity, is it balanced,
stimulating, well matured, differing high notes, long aftertaste,
deep, well rounded
• Body and texture, is it robust, heavy,
light, long lasting, full-bodied, good?
Both nosing and tasting skills are needed to appreciate the
different characteristics of malt whisky, but surprisingly, it is
the nose which will tell you most and the palate which confirms what
the nose has already identified.
Whether you plan to buy malt whisky as an investment or to drink,
the main thing is to enjoy it!
Slainte Mhath! |