News / WhiskyInvestDirect A revolution in whisky investment

20/11/2015 WhiskyInvestDirect A revolution in whisky investment

WhiskyInvestDirect In the centuries since whisky was invented, it has existed first and foremost as a drink, to be purchased and consumed. Recent years have witnessed the birth of whisky’s second identity; an investment. However, investments in whisky have, until now, been restricted to rare bottles of whisky, which are invariably hidden away in a cellar, never to be opened.

WhiskyInvestDirect, an online marketplace enabling investors to buy and sell Scotch whisky as it matures and gains value, opens the previously inaccessible world of maturing whisky to the private investor. In doing so, whisky enthusiasts can invest in the industry today in to share in tomorrow’s products, safe in the knowledge that their investment will ultimately be drunk.

Many different whiskies can be bought whilst still in the barrel, early on in the maturation process. These barrels are held in the same HMRC-approved warehouses in Scotland which already store the industry's maturing stocks. Using the same online platform, investors can then sell the whisky they own back to the blenders and distillers which make single malt and blended whisky.

Investors buy and sell Litres of Pure Alcohol (LPA), the industry standard unit of trade, while storage occurs in a HMRC-approved bonded warehouse at the wholesale rate. The investor owns the Scotch outright, as their property, with no minimum investment required and no minimum length of time that the asset must be held for.

WhiskyInvestDirect is different from traditional cask investment schemes, which restrict individuals to purchasing whole casks at a heavily marked-up retail price. As the investment is in bonded whisky, it is not subject to VAT or Duty, which bottled whisky is liable for. Investments made through WhiskyInvestDirect are fully insured and protected from losses due to evaporation or leakage, as industry-standard contracts agree to 'make good' any shortfall – something traditional cask investment schemes do not offer.

WhiskyInvestDirect comes from the award-winning team behind BullionVault, the world's largest physical gold and silver market online, together with Rupert Patrick, a former director of Diageo – the world's leading Scotch whisky brand owner – with 24 years' industry experience. By taking BullionVault’s platform, which has won two Queen’s Awards for Enterprise since its launch in 2005, WhiskyInvestDirect introduces access and technology to this centuries-old industry. This enables whisky enthusiasts and investors to help tackle the industry’s greatest problem – the large amount of money required to finance 10 years of maturing stock.

In addition to the investment platform, WhiskyInvestDirect publishes news on the industry past and present, with recent articles covering Johnnie Walker’s new ad campaign, analysis of the whisky auction market and the many links between the whisky industry and golf.