How Do I Start A Whiskey Investment? - Step By Step Guide
Alternative investments have become increasingly popular in recent years, and one form of alternative investment that has really boomed in popularity is whiskey investment. When you think about investing, it is likely that your mind will jump to the stock market, real estate, or crypto. It is likely that the last thing you will think of is whiskey. But whiskey is actually a pretty lucrative investment.
For people who are interested in alternative investment, whiskey is a great option. It is exciting and thrilling, and if you are interested in alcohol, then it is an investment opportunity that will keep you invested from start to finish.
But how do you start a whiskey investment? Well, that’s a good question. In this step-by-step guide, we’ll be telling you everything that you need to know about investing in whiskey. So keep on reading to find out more!
Also read: How To Calculate Retained Earnings?
What is a Whiskey Investment?
First things first, what is a whiskey investment? Well, as the name suggests, whiskey investments involve investing your own hard-earned money into whiskey. This investment works on the premise that there are some types of alcohol that taste better with age. Wine is one of them, and so is whiskey.
The idea behind a whiskey investment is that a cask of whiskey will appreciate with age. As the whiskey ages, it will become more refined in flavor, and this will lead it to taste better. The improved flavor will not only make it nicer to drink, but also make it more unique and rare. Both of these things combined will increase the value of the whiskey, allowing you to sell it at profit down the line
Whiskey investment can come in a variety of different forms, but there are two main types of whiskey investment that people choose. These two types of whiskey investment revolve around the type of whiskey that you choose to invest in. With that in mind, let’s take a look at the two options that you have.
Also read: How To Apply For A Ppp Loan - The Full Guide
The 2 Types of Whiskey Investment
There are two main types of whiskey investment that people will find themselves having to choose between. They are vintage collectible whiskey and modern releases. So, let’s take a look at what they both are.
Also read: Get The Insights - How To Get A Business Loan With No Sweats!
Vintage Collectible Whiskey
Well, first up we have vintage collectible whiskey. Vintage collectible whiskey refers to any bottle of whiskey that was released before the year 2000. The whiskey found in these bottles will be well aged, and will typically only come from one of a handful of brands – all of these brands are desired by collectors.
A great example of vintage collectible whiskey is any bottle of whiskey that may have been bought in either the 1980s or 1990s. Back then, this whiskey may have only cost around $10, but is now worth considerably more.
In contrast, modern releases are much more recent. In essence, the cut-off point between “vintage” and “modern” whiskey is whether it was released before or after the year 2000.
Modern release whiskey could include a collectible series of whiskeys, otherwise known as whiskey that has been specifically released as an investment opportunity. It could also include whiskey from distilleries that could themselves be a potential investment opportunity.
Also read: The 8 Amazing Passive Income Ideas With Little Money
Step by Step Guide to Starting a Whiskey Investment
Now that we have taken a look at the two options that you have for whiskey investment, let’s go through a step by step guide to investing in whiskey.
The first thing that you need to do is research. Whiskey investment isn’t something that you can simply dive straight into, you need to do your research in order to know what you are getting yourself into. If you have previously invested money in other ways, you will have some transferable skills. But you will still need to do your research in order to make a profit.
Source Your Whiskey
Once you have an idea of what whiskey allows you to make profit, you then need to then source the whiskey for the job. The cost of some bottles of whiskey is rather extortionate, and this is something that whiskey investors should be aware of when looking for potential investments.
You cannot simply dive into the first bottle of whiskey that you see, you need to do your research and then use the relevant platforms to source the whiskey and purchase it at an affordable price. Remember, don’t get distracted by the quality of the whiskey and the fact that it would be nice to drink, instead focus on the potential profit to be made on said whiskey.
Explore Other Buying Options
If you cannot find any whiskey that you are interested in purchasing out right, you should consider an auction. Often the secondary value of whiskey is determined through the auction market, so even if you aren’t quite ready to buy, but want to find out more about the market, then an auction is the place to go.
The auction market can often be a little confusing, and that is why it is very important to become familiar with it before you start bidding. Attend a few auctions just to become familiar with the processes, then once you feel that you have got it all under control, feel free to start investing.
If auctions aren’t right for you, then you can go through other channels to purchase your whiskey. As we established earlier, there are plenty of places that you can source your whiskey from. So bear that in mind before you buy. Then all that is left is to purchase your first bottle of whiskey, and get started!
Also read: 8 Personal Finance Apps For Your Better Future
In short, whiskey investment might be an alternative investment but it is one that is becoming increasingly popular. Whiskey only grows better with age, and as it ages, the value of the whiskey will increase. This can lead to you making an incredible profit on a single bottle of whiskey.
Your pay stubs will be a great resource to find out figures needed to calculate net income etc.
Thank you for reading!
Create Your Pay Stub Now!
It takes an average of less than 5 minutes.