The market for rare Scotch continues to attract attention.
New figures recently published by whisky analyst, broker and investment experts Rare Whisky 101, show that the market for rare whisky has experienced unprecedented growth during the first six months of the year, extending its lengthy bull run.
The 2017 half-year report from Rare Whisky 101’s 2017 revealed that both the volume and value of rare Scotch whisky sold at auction has increased by record amounts during the reporting period. The £ value of collectable bottles of Single Malt Scotch whisky sold at auction in the UK rose by an 93.66% to an all-time half-year high of £11.176m (H1 2016 £5.771m). The number of bottles of Single Malt Scotch whisky sold at auction in the UK increased by 47.25% to 39,061 (H1 2016 26,527).
The report concludes that the continued increased in values is reflected in the average per-bottle price, which has risen to a new record of £286.13, up from H1 2016’s £217.56 and FY 2016’s £241.87.
The Apex 1000 Index, which represents the value of the broadest market measurement, increased 11.50% from 505.98 points at the end of 2016 to 564.16 points at the 2017 mid-year point. This is broadly in line with 2016’s HY increase of 11.78%.
The most expensive bottle of Scotch sold during the period was a 50-year-old Macallan in Lalique, which fetched £65,210. This was up from the previous best of £17,000 in 2015.
The Macallan’s secondary market dominance extends, accounting for almost £300 out of every £1,000 spent at auction in the UK. The brand now has a 12.71% volume share of all bottles sold and a 28.90% share of the £ value (up from 10.26% and 21.85% respectively at FY 2016).
In contrast, the market continues to polarize as the broadest measure of non-performing rare whisky assets. The Negative 1000 Index, shows accelerating losses dipping -3.22% through the first half of 2017 (H1 2016 -0.83% and FY 2016 -0.13%).
Whisky investment analyst and co-founder of Rare Whisky 101, Andy Simpson (pictured above left with David Robertson) said: “Whisky investment analyst and co-founder of Rare Whisky 101, Andy Simpson commented: “Never has the secondary market for rare whisky been so strong, and we expect the value of Scotch sold at auction in the UK to break £20m this year for the first time ever.”
“At a brand level, individual producers are continually pushing the prices of their premium aged stock. Couple this primary market price inflation with increased global demand and declining stocks of discontinued bottles, and we still look to be in the ‘perfect storm’ for the right bottles to continue to appreciating in value.”
“Of course, as with any investment asset experiencing such a run, it all could come to an end. But right now, the right bottles of Scotch seem to be in ever increasing demand. With so little significantly aged stock still maturing in the cask, it’s unlikely we’ll see prices easing for rarities in the short to medium term.”
“For now, we remain optimistic about Scotch’s burgeoning credentials as an alternative investment… but only, as we always say, for the right bottles.”
