CROWNS III IS HELPING MAKE SINGLE MALT WHISKY A GOOD INVESTMENT.
BY YESSAR ROSENDAR
Precious Liquid – Single Malt Whisky a Good Investment
OLD IS GOLD—Things from the past are rising in value, due in large part to their scarcity. Modern art, vintage mechanical watches and wines have all become investment grade items, all falling under the broad term of alternative investments.
Recently single malt whisky has joined the ranks of this investment, comparable to what has happened with wine investments. Single malt whisky is regarded as the pinnacle of Scotch whisky, as about 90% of Scotch whisky is a blend. With supply limited and demand rising, prices have been appreciating. One example, in 2014 at the Sotheby’s auction in Hong Kong, a Macallan 6-liter “M” Decanter by Lalique, fetched $628,205—soaring past its $500,000 high estimate— and set a new auction record for a single malt whisky.
The previous record was achieved by Sotheby’s New York in 2010 when a Macallan 64-year-old in Lalique Cire Perdue sold for $460,000. In Southeast Asia, the trend for single malt whisky has picked up its pace and now its getting popular among the young and affluent crowd. “Currently single malt whisky can be an alternative investment, a personal collection, or you can just simply drink it, or maybe a combination of the three,” says Charles Seddon, the managing director of Crowns 3 Worldwide Consultancy.
Incorporated in Singapore as Crowns 3 Luxury Group Pte Ltd, Crowns 3 is an international luxury investment concierge with expertise in whisky, wine and art (the three “crowns” of its name). Established four years ago, the Singapore based company has rep offices in Malaysia and Thailand, and will open in Indonesia early next year. The company is proud of its collection of rare whisky stock that dates back to a Macallan Fine and Rare 1926, pre – war crystal decanters, and rare one off limited editions and casks.
“We have a comprehensive collection of rare single malts with a value of up to $5 million. We also own our own stock and we are not a broker,” Charles says.
The company even has a portfolio of single malt whisky from closed distilleries, such as Rosebank and Port Ellen. ” Clients can inspect their whisky before they buy, and the company also has a respected advisor, Chief Adviser Stephen Notman, a judge at the World Whisky Awards, among other accomplishments.
The company also will give its buyers regular updates on the capital growth performance of their portfolios. Furthermore, it can provide buy or sell recommendations based on sales figures from auctions. When required, consultants from the company will also assist clients in placing portfolios for sale on international markets and through auction houses such as Bonhams, Christie’s and Sotheby’s. “On average, out of all the whisky under the hammer at Bonhams Hong Kong 95% was sold by volume”
According to Rare Whisky 101, (whisky specialists based in Scotland) the overall supply of collectable bottles of Scottish single malt at auction reached an all-time high of 43,458 bottles in 2015, up 27 % from 2014. The total value of bottles sold also hit a record level at £9.5 million, exceeding 2014 by 25%. In December alone, 4,888 bottles of collectable single malt sold on the open market.
Crowns 3 provides end to – end services, from the procurement of the whisky, to the handling and storage, and then advising on the eventual sale. A customer who buys from Crowns 3 can collect the whisky or have it stored in the company’s bonded storage in Singapore, Hong Kong or London, so it is not taxed. The company’s partner for storage has temperature, humidity and light exposure controls. Crowns 3 are also looking to introduce their own private labels into the market place. They are looking to roll kurt a series of affordable single cask malts ranging from $ 60 USD – $ 300 USD per bottle. There will be a trilogy of the whisky under the Crowns 3 private label, geared for the collector and investor with prices reaching $200,000.
“All of our collections are produced individually and not mass produced,” As an investment, Charles recommends to his clients to hold their bottles for at least five years and recommends to go for renowned brands such as Highland Park, Bowmore, and Macallan. “Buying correctly and having a little bit of patience should always see you in good stead ”
“If done right, a single malt whisky can become an investment of passion.” – CHARLES SEDDON
Credit – Forbeslife Indonesia