According to the Knight Frank Luxury Investment Index, the performance of rare whiskey in the first quarter of 2020 has seen more modest gains than in previous years. But considering the climate, the gains the market did realize still make rare whiskey a “safe haven” asset, protected against the more wild fluctuations of other speculations. And if one looks just slightly further back, rare whiskey realized an 11% gain over the past year, and a whopping 586% gain over ten years. The most collectible bottles of American whiskies have seen gains of anywhere from 43% to 92.75%. Whiskies are out-performing almost every other luxury asset class. This level of growth has even given rise to the establishment of several private equity funds focused on investing in rare whiskey.
In this particular historical moment, these two pre-Prohibition bottles of Jack Daniel serve to remind us of previous tumultuous times successfully navigated. They are likely the lone survivors of their kind, but they bring a message from the past of nimble adaptation and perseverance. Their symbolic value alone is worth a hefty price, but as the Knight Frank notes, bottles like these are likely to become even more valuable as the “possibility of many ultra-rarities being opened and fittingly consumed when the [current] crisis is over could remove a significant pool of stock from the future market.” In other words, here’s to the future.
View the full results from the September Rare Spirits Auction