Investors Hoard Whisky to Soothe Inflation Fear

“Commercial property investor James Scott’s new favorite asset is a lot more liquid: whisky in casks—at least 4,000 liters of it, stored in a warehouse in Scotland. He was introduced to whisky on a second date with his now-wife, who teased him for ordering vodka. Scott started collecting bottles five or six years ago and has since switched to casks. He recently sold a 28-year-old cask of Bunnahabhain, produced on the Scottish Hebridean island of Islay, after it appreciated 10% in 11 months. “Whisky certainly outperforms inflation in casks,” Scott says. “There’s no question about that.”

What if inflation doesn’t materialize? For Scott, a good tipple still has one edge over purely financial assets. “Whisky’s got more soul,” he says. “And at the end of the day, if it doesn’t work out as an investment, you can have a great party.””

Read the full article on Bloomberg here.