The top investment of choice among millennials has moved away from traditional alternatives towards a surprising new direction: whisky. Recent findings from a Braeburn Whisky survey of more than 1,500 randomly sampled individuals, revealed that 28% of millennials are more likely to invest in whisky than gold, art, cryptocurrency or even stocks and shares. Whisky came second only to property in the survey, with just 3% of those surveyed giving preference to property investment.
Braeburn Whisky; a team of rare whisky investment experts and financial consultants specialising in the sale of investment-grade whisky casks to investors around the globe, noted an increase in millennial investors over the last 2 years.
In an effort to discover whether millennials are bucking the investment trends of the generation previous, Braeburn Whisky conducted an online survey of over 1,500 individuals. Focusing on the 24-39 age demographic, the survey was able to gauge their feelings and values towards investment in the current climate.
With the majority of millennials favouring property and whisky investment, and 36% stating stability and return is most important to them; it’s apparent that this generation are shunning more traditional investment opportunities, such as stocks and shares, in favour of tangible assets – bricks and mortar, but also liquid gold.
Niall Brown, Senior Portfolio Director at Braeburn comments, “We are receiving more and more interest from a younger audience with 20% of clients in this age demographic currently on our books and the figure increasing. Tangible assets are widely regarded as a more stable investment option throughout periods of economic uncertainty, and this could explain why younger generations have adopted these investment habits widely. Even alongside other well-known tangible investment assets, such as gold, art or Bitcoin, whisky in the cask is proving a popular choice.”
Shaped by the launch of the internet and growing up in the wake of wars, terrorist attacks and the 2008 financial crisis, millennial priorities have been reactive to an ever-changing, unstable environment and economy so it’s unsurprising that they look for something more tangible and reliable from their investments.
However, the housing market continues to prove a challenging or impossible first financial step for the younger generation. Chief economist, Robert Gardener is quoted in an article for the BBC stating, “house prices have now reversed the losses recorded in May and June and are at a new all-time high.”
Fewer than 50% of people in England age 25-34 live in a home they own, according to the latest English Housing Survey. Tom Belger reports for Yahoo Finance UK that houses cost millennials 14 times more than baby boomers, as property prices have risen twice as fast as wages in the UK over the past 4 decades.
Arguably, this could explain why whisky appears to be piquing interest among the investment savvy, with 35% of millennials that chose whisky as their investment of choice stating their interest is with whisky casks specifically.
Braeburn Whisky’s survey also determined that 38% of millennials would choose whisky for stability which shows an increase in confidence in the marketplace. This comes in higher than stability as a whole, which saw 36% of all millennials surveyed choosing stability as the most important factor when it comes to investment.
Scott Brown, an electrician and business owner from Islay, is both a millennial and client of Braeburn Whisky. Brown has quickly developed an impressive and diverse cask portfolio having invested in 5 casks from acclaimed distilleries across Scotland, since May of this year.
Brown comments, “I’ve got a major love for whisky. I’ve been collecting bottles for years now. One day I came across a pop up on Facebook and made an enquiry with Braeburn. After speaking with Niall, I realised my love and knowledge of whisky meant I could successfully invest in casks for future financial security, instead of a traditional pension. In my personal opinion, you can’t go wrong with an investment in whisky.”
Samuel Gordon, Sales Director of Braeburn explains why this is true, “Whisky casks are a stable investment because they have intrinsic value. They’re not affected by the same volatile swings that traditional investments are, which makes them an ideal option in the current climate. Whisky in the cask continues the maturation process, taking on the beautiful, unique flavours of the wood where as bottles of rare whisky are subject to market forces. This means, with whisky casks, you can confidently ride out any economic uncertainty, knowing that your whisky is only getting better in flavour and value.”
With a cloud of uncertainty continuing to underpin 2020, Braeburn believe the tangible nature and authenticity of whisky cask investment will continue to appeal to the younger demographic.
Image credit: Konrad Borkowsk for Braeburn Whisky