Business

The Future of Whiskey Investment

Published

3 years ago

August 26, 2021

The value of rare whiskey has increased by 478%in the last ten years, according to Knight Frank’s Wealth Report 2021. This massively supersedes the value of traditional investment options: Classic cars increased in value by 193%, fine art by 71%, and wine by 127%.

Portfolio Manager, Casey Alexander, believes this is an important time for diversifying your portfolio and now, unlike before, it is easier to gain access to some of the rarest casks of single malt Scotch whisky.

While it is undeniable that markets are now volatile, I would still write the same article regarding whisky cask investments and how they compare to investing in whisky bottles and other physical assets even if this were not the case.

Although the act of buying whiskey casks privately is almost as old as the act of producing it, the opportunity for investors to participate in this market is a relatively new phenomenon. There are several causes for this, the most important of which are the increased availability of Single Malt Scotch in the 1980s, and the ongoing rise in popularity of whisky as a hobby since the beginning of the twenty-first century. Around this time, a small group of whisky collectors began to amass uncommon bottles, and this market has continued to grow to this day, as evidenced by the growing number of whisky auction sites and the frequency with which they sell.

Despite the scarcity of collectible bottles, it is a reasonably easy market to break into by visiting a specialist retailer, purchasing through an auction or from a private owner, or participating in one of the rare bottling ballots at a launch. Purchasing whiskey casks is a little more complex – and it is strongly recommended that you work with a reliable organisation in this field – but it can provide numerous benefits to investors seeking medium and long-term growth when compared to bottles and other alternative assets.

Let’s start with a bottle investment. Given the expanding global interest in single malt whisky, there are still plenty of smart investments to be made, and the industry’s development and profitability show no signs of slowing down, but a collection of rare bottles isn’t always the greatest option. Importantly, the liquid in a bottle does not age or mature, therefore a 12-year-old bottle of whisky will always be a 12-year-old bottle of whisky, and its value will only rise if the supply of that alcohol decreases, either due to discontinuation or a limited-edition bottling.

Many investors face financial and logistical difficulties, such as auction fees, shipping charges, and storage space requirements. Many investors just don’t have the time or space, either at home or at work, to dedicate a room to their bottle collection and manage the administration of tracking, packing, and shipping bottles, particularly when significant collections can have hundreds or thousands of bottles.

Whiskey casks are a much easier investment since the liquid is often acquired at a younger age and for a lower price compared to when the whiskey is matured. In certain situations, it is even purchased as a new make spirit. Whisky sells best at the ‘Milestone Ages’ of 12, 15, 18, 21, and 25 years old, so keep this in mind while deciding on an exit strategy for your investment.

Holding a 9-year-old barrel until it is 12 or 15 years old, for example, would be a shorter-term investment, with the whisky maturing in the cask and increasing in value throughout this time. We have yet to come across a distillery that sells their 18-year-old single malt for less than their 12-year-old single malt, and casks are no exception. The cask must be stored in a bonded warehouse in Scotland, which removes the need for the investor needing storage space for the cask.

Business

Private Listings by Harold X. Clarke: A New Approach to Fine Real Estate

Published

2 weeks ago

December 16, 2024

Matthew Wiles

Photo credit: Private Listings by Harold X. Clarke.

Byline: Andi Stark

Private Listings by Harold X. Clarke, a real estate platform operating across Hawaii, is rewriting how properties are bought and sold in the region. Unlike larger firms reliant on public listings and mass marketing, Private Listings’ strategy prioritizes personalization, privacy, and meticulous curation of ultra-high-end, off-market properties, including oceanfront estates, gated community residences, and architectural masterpieces.

Harold Clarke, founder of Private Listings, describes their method as one that rejects “cookie-cutter solutions in favor of understanding the nuances of both buyers and sellers.” This approach has resonated with ultra-high-net-worth individuals (UHNWIs) seeking refined and discreet real estate transactions.

The Hawaiian real estate market remains a hub for global investors, with the median price for a single-family home in the state reaching $900,000 in 2024, according to the Hawaii Association of Realtors. Within this competitive landscape, Private Listings is building up to be a trusted name for properties that extend beyond luxury into generational investments.

Challenging the Industry Norms

Private Listings deliberately avoids the conventions of large-scale real estate firms. By focusing on fewer, higher-value properties, the company ensures that each transaction is treated with the same level of care and confidentiality.

Public listing platforms, while effective for broader markets, often expose sellers to unnecessary attention or unqualified inquiries. For Clarke, this model is misaligned with the needs of UHNWIs. “Privacy isn’t a luxury for our clients—it’s a necessity,” Clarke explains.

This philosophy has led Private Listings to handle some of Hawaii’s most significant real estate transactions, including off-market properties valued at over $40 million. Its success is not measured by the volume of listings but by the depth of trust built with clients, many of whom return for subsequent transactions.

Adapting to Changing Client Demands

While Private Listings maintains a foundation of traditional practices, the firm also recognizes the evolving needs of its clientele. The global real estate market is increasingly influenced by concerns over digital security, with a 15% rise in data breaches targeting high-net-worth individuals in the past three years, according to cybersecurity firm NortonLifeLock.

To address these risks, Private Listings employs rigorous screening for potential buyers and uses secure platforms for communication and transactions. The firm’s “by invitation only” model ensures that clients remain protected from the pitfalls of public exposure. Clarke notes, “Our goal is not just to sell homes but to create an environment where clients feel safe and confident during every step of the process.”

The Human Element in Real Estate Transactions

Despite advancements in technology, Private Listings firmly believes that real estate transactions cannot be reduced to algorithms or automation. Unlike firms that depend heavily on online data aggregation, Private Listings emphasizes human connection and insight.

The company’s sales strategy integrates personalized client interactions, in-depth market analysis, and years of experience navigating Hawaii’s unique real estate ecosystem. Clarke’s background in managing family assets and his global perspective is significant in shaping this essence.

Future Directions for Private Listings by Harold X. Clarke

As Hawaii continues to attract global attention, Private Listings aims to expand its influence within the state while maintaining its core principles. The company is currently developing a new platform to streamline services for UHNWIs, blending their demand for discretion with seamless access to Hawaii’s finest off-market properties.

Additionally, Private Listings is strengthening its ties with local communities, recognizing that sustainable growth benefits both the company and the islands’ ecosystems.

Private Listings by Harold X. Clarke has set itself apart in Hawaii’s real estate scene by moving away from the typical mass-market approach. Through a mix of traditional values and modern sensibilities, the firm continues to define what it means to transact ultra-high-value properties with integrity and care.