In the last 12 months, there has been a significant increase in the advertising and promotion of whisky cask investment schemes across media channels. It is important to proceed cautiously if you are considering investing in a whisky cask. There is risk involved and not only in overpricing and overpromising on returns but around the details and technicalities of ownership.
Often too good to be true
The simple idea behind whisky cask investment is that the cask is held in storage for several years, often decades, by which time it has matured into something that will have much greater value when it is ready to be bottled. Investors often don’t realise they may have been scammed until they try and cash in on their investment. Some top tips to consider are laid out here
Whisky Cask Investment – the technical detail
Anyone buying and selling whisky casks as a business needs to be on the register of Warehousekeepers and Owners of Warehoused Goods Regulations (WOWGR) , a rigorous process undertaken by HMRC. And while cask whisky investment is not regulated by the UK’s Financial Conduct Authority, a Delivery Order (DO), a written contract between cask seller and buyer, addressed to the warehouse keeper who is storing the cask, is necessary to legally transfer ownership. The claims, approach of fraudsters and the details of legitimate regulation and compliance are laid out well here.
Is Buying A Small Cask for Home Finishing a Good Investment?
The bespoke casks sold by the Cask Spirit Company, are not intended to be resold. Also if a cask has not spent its entire time maturing within Scotland it can not legally be sold as a Scottish malt. Finishing whisky at home enables you to create a high-quality, unique product that would command a significantly higher price if purchased on the open market. However, your cask should not be viewed as an investment vehicle; it is a beautiful bespoke item personalised for you to enjoy, share and gift to friends and family.