Let’s face it, not everyone can be Michael Saylor, whose company, MicroStrategy Inc., is reportedly making $500 million a day thanks to Bitcoin’s surging price, now hovering near a record $100,000.
One alternative asset that’s tangible, much more accessible, and starting to get serious investor interest among enthusiasts and non-drinkers for its financial staying power: bourbon and Scotch whiskey.
FIN’s Fast Forward Podcast host Holly Sraeel and guest Jeremy Kasler, founder and CEO of CaskX, a bourbon barrel and Scotch whiskey cask investment platform, talk about whiskey investment gaining ground in the U.S., why demand is so strong in Asia, Europe and Australia, and what kind of returns investors can expect to see over an eight-year investment horizon.
Jeremy and his team look for rising whiskey brands that have yet to reach their peak, identifying popular and hidden gems whose casks have the best potential to increase in value. Distillery history, core bottle prices, auction results and secondary trading are considered when determining market demand and with which brands CaskX will work.
The global whiskey market is worth nearly $70 billion and is projected to hit $125 billion by 2032, according to recent findings from KPMG. It surveyed 200 high-net-worth individuals and investment advisers to gauge their attitudes and knowledge about whiskey as an investment class. Of all luxury asset classes, KPMG found that whiskey is the most popular, with 27% of respondents saying they planned to invest in whiskey in the next 3 years, as compared to art (26%), jewelry (20%), wine (15%) and classic cars (14%).
Predictably, whiskey investment trailed real estate, gold, commodities and cryptocurrencies. While Kasler concedes bourbon barrel and whiskey cask investing will never rival real estate and that some risk exists—if barrels are destroyed by fire or tornado, for example, CaskX fully insures them at replacement value—he thinks the market could have the same appeal for investors as gold: “It’s a safe haven investment. Americans like to invest in things that are real.”
Listen in as Jeremy and I discuss why whiskey cask investment is not just for loyal enthusiasts and what he’s doing to position this alternative asset as good as gold for a broader set of investors.
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