Scotch on the rocks

Market in rare whisky suffers its first decline

IT has gained a reputation as ‘liquid gold’ thanks to its ability to hold its value while more traditional investments endure ups and downs.

But the rare whisky market has suffered its first decline – thanks to an ‘oversupply of bottles’ and the growth of specialist auctions.

Broker and investment experts Rare Whisky 101, which has monitored the market for the past 12 years, yesterday released its half-year report. The value of the market, which looks at the top performing

‘An oversupply of bottles’

1,000 bottles, has shown its first loss – dropping by 0.26 per cent.

During the same period last year, it rose by 9.91 per cent. The average per bottle price also fell to £361 from December’s high of £377.

But this is still up from the first half of last year, when it was £328. And a record amount has been spent so far this year on the ‘water of life’ – £25.8million, against £16.3million last year.

Andy Simpson, a whisky investment analyst and cofounder of RW101, said: ‘On the back of ten subsequent years of growth in the investment performance of rare whisky, we have seen an oversupply of bottles, the continued proliferation of specialist whisky auction houses and a record amount of money spent at auction all combine to produce the rare whisky investment market’s first “blip”.

‘Collectors, investors and buyers would be well advised to note the dip.’

He added: ‘We do not believe it indicates the start of a longer-term downward trend ... there are pockets of growth for those who research.’

RW101 said another reason for the dip was a fall in the fortunes of the Macallan, which is the most dominant distillery in the so-called secondary market – people buying and selling whisky they already own, not from distilleries.

Mr Simpson said: ‘In contrast to the Macallan’s secondary market woes, Springbank has turned in an incredible performance, claiming top spot in the investor rankings for the first time. The right bottles from the right distilleries will continue to offer a strong investment proposition.’

Springbank, in Campbeltown, Argyll, was closely followed by the so-called ‘silent’ distilleries – sites no longer in use – Brora and Glenugie.

The Macallan moved from fourth in the rankings at the end of last year to seventh by the end of June this year.

The number of bottles of single malt sold at auction so far this year rose to 71,544, from 49,719 in the first half of 2018.