We've all been there. Feeling overwhelmed and anxious about what to invest in. Between all the apps, the tickers and the talking heads on TV and social media, it's an onslaught of mediocrity. Ever thought of investing in something you understand? Well, most people understand Bourbon. It doesn't take the CEO of a hedge fund to tell you that all your friends love the stuff and its demand has skyrocketed. Just go to any bar in America or booze store and you'll see the stuff is as popular as ever. So why not invest in that?
Enter CaskX, CaskX offers individuals the opportunity to invest in full barrels of scotch and bourbon from leading distilleries across the United States and Scotland. Which is another way of saying, CaskX lets you invest in something you probably actually use and like.
Are we suggesting you put your child's college fund in bourbon? No. But if you are looking to diversify, have a great story to tell and take advantage of a visibly growing market, CaskX is something to investigate.
Here's 5 reasons you should add bourbon barrel investments to your portfolio:
#1 Inflation Hedge
With governments printing trillions of new dollars as part of Covid-19 aid packages combined with low interest rates, it was only a matter of time before the economic impact of the increase in monetary supply started to take effect in the form of inflation. In times of high inflation one of the best strategies is increasing investment in tangible assets, such as bourbon barrels. Tangible assets hold true economic value which protects wealth against decreases in the buying power of currency.
#2 Surging Demand
The demand for bourbon is exploding both domestically and abroad as a new generation falls in love with America’s native spirit. From Asia to South America, more and more countries are seeing drastic rises in demand for premium bourbon. Adding more fuel to this growth is the lifting of European tariffs on bourbon imports which has further boosted demand throughout the continent. Demand has risen to the point that nearly 2 million barrels will be bottled this year, up 85% over the last 10 years.
#3 Insufficient Supply
If you take a drive through Kentucky nearly every distillery is building new warehouses as fast as they can, but it’s still not enough. Simply put, the supply of older age bourbon remains bleak. In fact, according to the Kentucky Distillers' Association there are currently less than 550,000 barrels which are of 6 years of age or older. As consumer demand for premium well-aged bourbon continues to grow, distilleries cannot produce enough - making each barrel a prized commodity.
#4 The Power Of Age
Bourbon only matures when it is contained within a barrel, after bottling the maturation process stops. By purchasing full barrels an investor can capitalize on an asset that grows in flavor and complexity with time. Maturation is a unique characteristic that offers a powerful edge for bourbon investors as it moves the investment away from reliance solely on market supply and demand.
#5 Provenance
When investing in tangible assets, many types, such as art and collectibles, must be closely evaluated to avoid the purchase of a fake or forgery. This can present a lot of uncertainty and risk to an investor, but barreled spirits offer a compelling alternative. By law, bourbon barrels must be held in a government regulated warehouse facility for the entire duration of the maturing process. If a barrel is lost or damaged, the warehouse faces strict penalties and as such they maintain stringent control procedures. This allows investors to rest easy knowing that each barrel within their portfolio is under a watchful eye from distillation until bottling.
If you check out CaskX's website, you'll see they are the real deal, with lots of investment opportunities in the space. Watch the 2 minute video and take a call to investigate for yourself. Hell, we've even seen a boom in bourbon food products over the last 10 years. So if you drink it and cook with it, why not invest in it?
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