Scotch whisky prices jump as investors seek haven

The value of rare Scotch whiskies has climbed by more than a fifth this year as younger investors sought tangible assets amid volatile financial markets, the Financial Times reported. 

Volumes have jumped by almost a quarter, FT said, citing a report by Scottish investment bank Noble & Co. The increase in auction sales was mainly driven by bottles priced between £100 (S$166) and £1,000, with that category seeing values rising 40 per cent and volumes 30 per cent in the first three quarters.

The report was conducted with data science company Brainnwave, and tracked more than half a million auction transactions over the past decade. Choppy markets have bolstered demand for rare whiskies as alternative investments, FT cited Noble as saying. Sales at investment firm Elite Wine & Whisky highlight that trend.

Elite saw demand spike after the UK’s “mini-budget” in September roiled markets, and its turnover has risen 70 per cent so far this year to £17 million, the newspaper reported.

Scotch made up three-quarters of Scottish food and drink exports last year and more than a fifth of all UK food and drink shipments, FT said, citing the Scotch Whisky Association. Bloomberg