This article is sponsored by CaskX.
Across the world, people are turning to bourbon and Scotch for investments. New technology has made it easier than ever to get your hands on shares of rare and fine spirits previously reserved for distillers and the uber wealthy.
CaskX, an investment company based in Los Angeles, took to the call to offer individuals opportunities to invest in shares of bourbon and Scotch from leading distilleries across the whisk(e)y world.
Jeremy Kasler, CEO of CaskX, offered insight into how enthusiasts can gain access, particularly since the barrier to entry for whisk(e)y investing has been traditionally high.
Long-standing conventions in the industry dictated that casks could only be sold to private individuals in order to provide the cashflow that distilleries needed, meaning investment was really only open to insiders, large dealers, and institutional buyers.
In the case of bourbon investing, Kasler said CaskX is a “unique investment opportunity that allows qualified investors the opportunity to bet on bourbon, a category that has appreciated on average 13.85 percent per year since 2010.”
The appetite for bourbon and Scotch as an alternative investment is certainly at an all-time high due to two major factors.
The first is an increased desire among investors to diversify their holdings with tangible assets. With the continued uncertainty surrounding traditional financial markets and the volatility found in new asset classes, such as cryptocurrency, investors are drawn to the relative safety offered by an investment in bourbon and Scotch barrels.
In stark contrast to most types of investments, bourbon and Scotch barrels are a physical asset that have real intrinsic value … each barrel will eventually be consumed.
The second factor is surging demand for bourbon and Scotch across international markets. In Kentucky alone, there are more than 10 million barrels of bourbon aging, yet distilleries still aren’t able to keep up with demand.
“If you take a visit along the Bourbon Trail, this growth can be seen as distilleries are investing big in expanded production and warehousing facilities,” Kasler said. “Investors who recognize the growth of the market naturally want to find a way to capitalize themselves and investing in bourbon and Scotch barrels offers them this opportunity.”
CaskX purchases barrels in bulk from some of the rising stars in the whisk(e)y industry in order to secure the best deals at the best prices for its clients. The spirit is aged in a licensed warehouse, increasing its value as it matures. When it comes of age, CaskX helps its clients resell, bottle, or distribute their whisk(e)y portfolio.
“This process is really a win-win for the distilleries and the investors,” Kasler said. “By selling barrels into our system, it keeps the lights on for some distilleries while allowing investors to gain entry to a category that historically has done well, even in economic uncertainty. Not to mention, this process allows the whiskey to mature to its full potential in a market where distillers are often forced to bottle early in order to turn profits.”
CaskX pours over data from the past two decades in the whisk(e)y industry, current trends, and the global economy and creates growth estimations to help clients understand the profit potential of each barrel they buy. Its online platform allows investors to browse, organize, and examine their portfolio, helping to make informed decisions.
Kasler compared investing in Scotch and bourbon to the likes of classic cars and vintage sports cards. “Of course there are similarities, but the unique aspect to bourbon and Scotch as a tradable commodity is that it increases in value as it ages regardless of market conditions. No other commodity can make this claim.”
Once qualified, investors start by opening an account with CaskX. After an account is opened, clients speak with an advisor about their individual investment objectives, desired holding period, risk tolerance and overall budget in order to make recommendations accordingly.
When a suitable investment offering is identified and acquired, the investor is provided with full documentation of their purchase along with being able to access their portfolio from a web-based portal.
“This is the perfect time to invest in bourbon and Scotch,” Kasler noted. “We are seeing all the indicators that quality-aged whisk(e)y will fetch great prices for many years to come. We are seeing increased demand for quality bourbon not just in the U.S. but globally. Markets like China, India and Asia can’t get enough of it.”
For those interested in investing, check out www.caskX.com to start the process.