Insights - 23 May. 22
Renewed Interest In Alternative Investments Amidst Soaring Inflation
Renewed Interest In Alternative Investments Amidst Soaring Inflation
The year was 1982 when the UK last saw inflation rise as high as 9%, with last week's announcement launching money management to the forefront of the nation’s minds. As the nation looks for a safe haven to protect their hard earned savings, Scotch Whisky Investment continues to make the headlines for the right reasons.

Alternative Investments have historically performed very well in times of economic uncertainty, providing consistent returns whilst often outperforming soaring inflation and turbulent interest rates. Whilst property, classic cars and fine art have long been the investment of choice for many, they require intimate knowledge of the subject and offer a relatively high entry point.

It comes as no surprise then that we’ve seen a new wave of investments rise to the forefront with crypto, NFT’s and even trainers rising in popularity. However, not all alternative investments react the same, with asset-backed investments proving less volatile in turbulent times. 

The Rise and Fall of Crypto

Cryptocurrency took the world by storm following the meteoric rise of Bitcoin at the start of the decade. Rising an incredible 187.5% in 2021 alone, cryptocurrencies were rapidly spoken about as replacing conventional currencies.

Deregulated, free from the influence of individual economic performance and incredibly accessible, crypto promised it all and in fact, was many people’s first foray into the world of investment.

The promise of unbelievable gain in a short period of time however wasn’t to be realised by many. The cryptocurrency market crashed from $3.1billion in November, to $1.3billion at the start of this month, triggering warnings from trading platforms such as Coinbase that they might not survive the crash. 

With multimillion dollar advertisers now admitting they knew nothing about the currency before promoting it to the masses, the main concern for investors is now where their assets lie. With Coinbase already warning users that their digital wallets will be lost should the platform collapse.

Consistent Cask Investment

Unlike crypto and shares, Scotch Whisky investment offers a tangible asset which the investor owns outright. Thanks to the laws and regulations governing the production and sale of alcohol, each cask of Whisky is securely stored inside a bonded warehouse. Should the distillery, warehouse or seller collapse, the individual casks remain the property of the investor.

Tangible assets are a secure store of wealth for this very reason, performing well regardless of the world around them. Immune from the influence of inflation, interest rates and even world crisis, the value of cask alcohol is free to increase along with the age of the barrel. Typically Scotch Whisky has returned between 8-12% per annum, with many casks often exceeding this.

Just last month a new record was set when a cask of Macallan sold at auction for £1.1 million pounds.

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Making Cask Investment Easy

Here at Whisky Investment Partners, we’re passionate about making cask investments as easy as possible. By combining the secure and dependable nature of tangible assets such as cask whisky with the ease and accessible nature of modern platforms, it’s never been easier to hedge against a world of rising inflation. 

Our portal allows investors 24-hour access to view and manage their cask portfolio, from a computer or mobile. To start your own journey, we recommend speaking to one of our dedicated Portfolio Managers who can work within your budget, targets and risk appetite to ensure you’re matched with the right casks for you.

 For more information and to download our free guide, just click here.

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