The most expensive whiskey today is a 62-year-old Dalmore single malt, of which only 12 were ever produced. Seven years ago, one fetched a princely $51,000. In September last year, a Chinese businessman bought another bottle for $195,000, which represents a 282% increase. Granted, that’s peanuts compared to Green Mountain Coffee Roasters’ in the past five years, but who would take caffeine over a good shot of whiskey?
Michael Kappen, a former banker who started the World Whisky Index, expects whiskey investments to return annual yields at an impressive 12%
Leave it to a former banker to improvise when the market (your 401k, IRA, etc.) has yielded an average return 4.5% over the past 10 years.
“Don’t go for something off the shelf, even if it’s 10, 12, 80 years old or whatever because those are generally not limited production. Those are created every year, whereas limited-run productions are maybe 100 bottles or 10,000 bottles. At 10,000 bottles, they’re going to be lower in price, but as people drink them, supply gets reduced and the prices go up immediately.”