Rare whisky or rare wine? Which to collect in 2021

Collecting rare alcohol has long been a popular pastime, offering both the pleasure of unearthing coveted gems and the possibility of striking rich. Indeed, occasional liquor — and wine in particular — has proved to be an incredibly worthwhile investment over the years. Alcohol consistently outperforms traditional assets such as stocks and shares, primarily because it has little correlation to economic trends and, since it is a physical product, cannot 'default'. Furthermore, it's one of those rare investments that are entirely tax-free.  

But although wine has long been the go-to alcohol collectible, another kind of alcoholic beverage has recently seen a considerable upturn: whisky. Like wine, it offers boundless opportunities for discovering new and exciting varieties and can be a surprisingly lucrative investment. The fact that a single bottle sold for a record $1.9 million in 2019 shows just how valuable whisky can be, and it's no wonder it's gained the title of 'liquid gold' in recent years.  

So, as we enter the new year, is 2021 a good time to start collecting whisky instead of wine, or is vino still the superior option?

The benefits of collecting rare whisky

There's more new whisky than ever

The whisky industry is booming, particularly the Scottish sector, with new distilleries opening up all the time and debuting new and exciting bottles. The Irish whisky industry is enjoying its moment in the sun, enjoying 13.4% compound annual growth over the last five years. As noted by Forbes, this is also largely down to the number of new brands on the block: "In 2010, only four distilleries in Ireland peddled Irish Whiskey, with Jameson reigning the market. Today, there are more than 30 distilleries." Consequently, there's more choice for collectors than ever before. This is great news for casual enthusiasts and those looking to make a buck, with sites selling collectible whiskey making it easier than ever to find the most valuable new bottles.

Its value is growing fast

According to analysis in The Wealth Report from Knight Frank, rare whisky not only increased in value by 5% over 2019 but has risen at a faster rate than cars, art, and, most pertinently, wine in the last decade. The value of rare whiskey grew by a remarkable 564% in this period, significantly higher than the growth of the collectibles listed above, which only increased in value by 194%, 141%, and 120%, respectively. As such, rare whisky has the potential to be an incredibly worthwhile investment in the long term.

There are minimal costs involved with whisky ownership

One of the main drawbacks of collecting wine is the effort and cost involved with storage. Indirect sunlight, keeping wine at the wrong temperature, close to vibrating goods such as washing machines, or even at the wrong angle can spoil it by interrupting the delicate aging process. As a result, many wine collectors have to buy a dedicated wine cooler or even pay a wine storage company to look after their bottles. Conversely, whisky doesn't age in the bottle, meaning there's much less risk involved in preserving it. All owners need to put it somewhere dark, cool, and away from sunlight to maintain its flavor. 

The benefits of collecting rare wine 

There's more new wine than ever

As with the whisky industry, the wine sector is going from strength to strength, with alternative markets giving collectors more options than ever before. For example, Liv-ex, the world's largest open-source database of wine information, has added new indices for the Port and Californian wine markets in recent years, showing just how much of an impact these two regions, in particular, are having. They are set to grow even more in the coming years, too, with Port predicted to experience a Compound Annual Growth Rate of 25% between 2019-2026, and California expected to export more than $2 billion worth of wine by 2030.

The fine wine industry is in good shape

Despite the myriad issues faced by the wine industry during the 2020 peak of the Coronavirus pandemic, it has shown remarkable resilience and continued to perform well. As noted in The Drinks Business: "The benchmark Liv-ex index, the Fine Wine 100, suffered in the early part of the year as uncertainty reigned, but important sectors rallied quickly." As with the whisky industry, there were a few regions that enjoyed notably barnstorming years. These include Italy and Champagne, whose sub-indices on the Fine Wine 1000 rose by 6.7% and 8.2%, respectively. This shows that there is plenty of value in the industry. 

Wine improves with age

As noted earlier, wine ages in the bottle, whereas whisky doesn't, giving wine collectors a couple of advantages. Firstly, their collectibles will improve quality over time, with a wine's flavor and texture changing thanks to tannins' sedimentation in the bottle. The second benefit is that wine has more significant potential to increase in value due to its ability to improve, though this is dependent on several other factors.

Should I collect whisky or wine?

The main thing to consider when deciding whether to collect wine or whisky is the reason for doing so in the first place. If you want to start an alcohol collection purely for fun, then it comes down to which drink you prefer. However, if you're looking at rare wine or whisky as an investment, then the choice is less clear cut. Both have the potential to make you plenty of money, though this is heavily dependent on the demand your chosen investments enjoy. As such, the most salient point here is the incredible growth in value whisky has seen over the last decade in comparison to wine, at over four times the rate. While it remains to be seen whether whisky will maintain this trajectory in the future, this arguably makes it the better investment choice in 2021. 

Author Bio: Syna Smith is Head of SEO Top SEO Agency. She has experience of 8 years in the digital marketing field. She is a dynamic and problem-solving personality and also an expert in blog outreach.