“As soon as the last retailer had sold out, they’d go into auction and the price doubles. Now these releases are [up to] 250,000 bottles. For the world. Do you see what I’m saying? That just shows how big the market is today.”
Singh also says that at the Whisky Exchange they have seen an increase in the price people are comfortable to pay for what might be considered an “everyday” bottle. “Three years ago I would have said to you it was around £70. Now it’s more like £150-250. People are not afraid to spend that on a bottle of whisky.”
Of course £250 is a tiny fraction of the £840,000 realised at the One of One charity auction for the lot of four 1950s Glenfiddich single malts but it helps to demonstrate how, from this broad base, the whisky pyramid can stretch up so high.
Andy Simpson, a lifelong whisky collector former investment banker and now a whisky investment analyst and co-founder of Rare Whisky 101 says, “Accounting for some of the growth we’ve seen is an interest from HNW buyers who are spending £20,000, £30,000, £40,000, £60,000 on a bottle of whisky they’re going to drink and that’s taking stock out of the market globally.” This of course increase rarity value in some bottles which can have the effect of increasing price.
The Knight Frank Luxury Investment Index, published annually as part of the Knight Frank Wealth Report, positions whisky as an alternative investment asset alongside coloured diamonds, cars, wine and art. However, Simpson, who works with Knight Frank to create it, cautions against using this to make a broad interpretation of the fine whisky market. “The index is a hundred of the oldest, rarest, most expensive bottles of single malt Scotch whisky ever created by some of the most talented distillers in the industry.” As he says, “If you want to invest in whisky you need to do your research. I’ve had 33 years of experience so I know what I’m doing and I still make mistakes. Don’t spend what you can’t afford to lose.”
At the end of the day, as Singh says, “Whisky is about drinking.” It’s best not to forget that.
