We all want to be able to put our money to work in a way that could potentially enrich our financial future, and doing so in a way that also ties in with our interests sounds even better. The issue is that with passion and enthusiasm comes a tendency to get caught up in the moment and to forget about the key details and nuances. People who operate cask whisky scams know this, and they use it to their advantage.
With this guide, we’re going to talk you through everything you need to know to stay safe when making whisky investments. Take a few minutes to work through it, and it will make sure that you’re safe and secure for years to come.
Verification is the foundation of due diligence
A Delivery Order is more than just a receipt—it’s the ultimate way to prove that you own the whisky and that it is as advertised. The Delivery Order is a crucial document because it will detail what you have invested in, list you as the owner, and include details of things like quantity and storage location. Without one, you will not be able to robustly prove that you have made the investment in the first place.
Your key contact should be open and transparent
Working with someone who will happily guide you through the pros and cons of each offer is the way to go. As with any investment, whisky has its risks and its potential upsides, and it’s understanding how these may play out that is the key to successful, sustainable investing. The more willing your point of contact is to dive into the details and be open with you, the more indicators you’re getting that they are someone you can do business with.
Think about how long you’re willing to hold before you make an investment
If you have a passion for whisky, it’s all too tempting to rush into opening a position because you’re enjoying the journey, but this is not the right approach. Thinking about how long you want to hold the position for and what you will do with it in the years ahead will help you to accurately determine the true risk profile of your portfolio.
“The market really works on long-term holds. You really want to be thinking 10 years or longer,” says Alphie Valentine, Co-founder of Hackstons, the whisky specialists who provide opportunities for investment and consumption. Although having expertise on your side cannot guarantee a return—nothing can—it will help you to think things through from beginning to end in a way that is logical and pragmatic.
Use past performance as a guide, but nothing more
Although there are no guarantees with whisky investments, there are plenty of guides that you can use to assess likelihoods. Having a team like Hackstons, who can provide case studies and real-world experience that relates to a wide range of whisky investments, is invaluable. If you use the past performance of similar investments to help you to gauge the risk-to-reward ratio, you will be able to take a pragmatic, evidence-based approach to structuring your investment portfolio.
Ignore unsolicited approaches and new entrants
Although cask whisky investment businesses will market and advertise their services, there is a difference between a marketing campaign and cold outreach that attempts to apply pressure. Unsolicited approaches are typically used by those who are operating scams, and sometimes by new entrants to the market who, while meaning well, have no track record. Because we are talking about your financial future, it’s important that you know you deserve so much more.
Having the confidence that you are doing business with a company that has a strong track record and solid public presence is essential. For example, you will find Hackstons on YouTube providing educational content, you will find them in Knightsbridge with a physical presence, and you will find them to be open and transparent when it comes to sharing key details about the investment opportunity.
Never make decisions under pressure
Taking your time and thinking things through is something that can feel easier said than done when you feel like you may miss out on an incredible opportunity. If your point of contact starts to apply pressure in an attempt to hurry you, we always strongly recommend walking away. Move at a pace you feel comfortable with, perform all the checks and balances outlined above, and make sure that you don’t let your passion for cask whisky dictate your decisions.
Do these simple things, and you will be able to stay safe in the world of whisky investments.
