The Hoarders With No Borders

It’s time once more to think about collecting.

Whether or not you want to, it is pretty hard to escape the fact that the world of whisky is expanding beyond all expectations. We don’t even need to stop at whisky, for there is still a lot of expansion in other distilled spirits such as premium rums and craft gins and it doesn’t seem to be stopping. More and more people are getting in on the concept of collecting. I’ve been asked by quite a few people recently about collecting and its enough to make it worthwhile to write another article on it. I’ve already written extensively on this in the past, but I feel now it is appropriate to bring you a more up to date article which encompasses some of the experiences that I have had as well as conversations I have had with various people within the whisky industry.

What is collectible?

This is all down to personal preference. We all have different things that excite us in the whisky world. Some people only collect from one distillery, some people may only collect certain vintages, certain age statements. We’ve all heard of the generous father who gave his son a bottle of 18 year old Macallan for his birthday, allowing his son to sell it and use the profit to help him move onto the property ladder, there really is no limit on what is and isn’t collectable, but you have to look at why you are collecting and this will determine what will be suitable for you to collect.

This is a question I put to Andy Simpson of Rare Whisky 101. Andy has been a whisky collector as long as he has been legally allowed to be, as well as being a collector, he is a broker, valuer and consultant to the Scotch Whisky Industry. Andy and I had some very interesting conversations over our joy of whisky collecting and seeing as I was going to have to rebuild my collection slightly, I thought it made sense to ask Andy what would be appropriate to collect in the future.

“There are three properties to collectible whiskies” Andy explained to me over the phone. “which are desirability, collectability and investability.” He went onto explain how every bottle will have different amounts of each property, and where it has good levels of all three, then that is where you have a suitable bottle.

***Bingo is the perfect balance. Bottles that meet all three criteria are the ones to go for. If it doesn’t have much investibility, then don’t look for profit.***

Desirability. Does the bottle have a physical property that makes people want to own it? Is it a whisky with an in demand flavour profile? Does it have attractive packaging?

Collectability Is it a rare release? Is it from an in demand distillery or bottler? Is it part of a set that you already own? Is it discontinued or from a silent distillery?

Investability This can be a product of the desirability and collectability. This is because if a whisky is rare and in demand, then the chances of it being investment grade are high. However, true investment grade whisky is likely to beyond the means of most people reading my blog. We are looking at items like Macallan where some bottles easily reach into five figures. Investability (which isn’t really a word in the English dictionary) is not likely to occur from a bottle that can be bought in your local supermarket. You are looking to source bottles at specialist whisky shops, distilleries or auctions to get a better chance of making a profit.

If you are considering whisky that has all of these attributes then you have a bottle that is likely to be in demand.

What sort of collector am I?

I think it is fair to say that the vast majority of collectors are people who perhaps just collected a bottle here and there, perhaps to drink, perhaps to save for a rainy day. Few might go down the investment route from the beginning. Has it been that people have got the idea that is often fuelled by the media and the producers themselves that whisky is a premium investment option? Just because something appeared on the Knight Frank index does not mean it will continue to do so.

The types of collector fall into a handful of very easy categories. 1/ Drinkers – Those who want to collect to have a good stash of a favourite dram on standby. 2/ Hobbyists. Those who take pride in owning bottles. 3/ Investors. Those who are buying whisky in order to realise profit, expecting their whisky to go up in value. 4/ Flippers. Those who take advantage of new releases to sell quickly after release to those who either can’t wait for a bottle or aren’t able to get a bottle.

Of course there can be blurring of the borders between the four types of collector. I don’t know if a flipper actually counts as a collector as some don’t even touch the bottle they buy, often getting retailers to send straight to the auctioneers. Personally, I’m a bit of the first three types. I have whisky in store that I know I plan to drink, whisky I’ve wanted to own because I like the presentation and whisky I have bought deliberately as an investment.

For those who drink or those who collect just to own bottles they admire, then what they choose to collect is entirely personal and dependent on their own tastes. However if you want to collect to realise a profit, no matter how small, there are guidelines that you would be well advised to stick to.

1. Have a collection policy or an aim.

This might not be particularly obvious, but if you want to maximise profits, then you have to target what you want to collect. In the start of my collecting journey, I initially started collecting bottles from distilleries that could be seen on my journey between home and Aberdeen. As this passes through Speyside, that encompassed many distilleries. I didn’t just collect any bottles, I collected those that were limited edition. Let’s face it, a standard 12 year old Glenfiddich unless its ancient is never going to realise much value.

I moved onto collecting Flora and Fauna bottlings. It’s advisable if you are going to collect a certain type of bottle, then attempt to get the whole collection. When the time comes to sell, you will be able to attract two types of buyers; those who want the whole collection or those who wish to a bottle at a time. Make sure however you are aware of the likely cost of all the collection before you start. For instance, many Flora and Fauna bottles cost around under £200. However, rarer bottles like the white cap first editions often go for over £400. The holy grail of the collection is the Speyburn, which was only made for one batch according to legend. This bottle has started regularly achieving hammer prices of over £2000.

2. Buy bottles that are likely to realise an increase in value

There is absolutely no sense in buying bottles for investment just because they are available. They have to be able to realise an increase in value and realistically you need to be buying bottles that will be in demand in the future. Bottles that would come under this criteria are most normally limited editions with low numbers released. There is a problem with the title ‘Limited Edition’ as in a lot of cases it isn’t really rare at all.

Realistically speaking, if you can buy it off the shelves of your supermarket, then it is generally not going to be a bottle that will be collectable. There are some exceptions, but you will have to generally keep hold of the bottle for many decades to realise a decent increase in value.

***Limited release festival bottlings are a good bet.***

Unfortunately, many bottles increase in value not due to the whisky inside of them, but due to the brand. The whisky inside them may not be the best example of what that distillery can produce, but the demand is there. Distilleries such as Macallan, Ardbeg, Highland Park and Glenmorangie spring to mind. It is pretty hard to lose money on a Macallan bottle, but you have to buy the right one. The quality of the whisky in a 1980’s distilled 10 year old is far superior to some of the Double Oak and Triple Oak expressions available now in my opinion so it pays to do your research. Not that any are bad whiskies, it’s all a matter of relativity and personal opinion. And while I did say it was hard to lose money on a Macallan bottle, it is possible and I personally know of one person who has lost £100 on a higher value release. It’s not me I hasten to add, although the person in question is quite open about it.

Bottles that are likely to go up in value are those from silent distilleries, bottles that were popular and discontinued, single cask bottles from an in demand distillery. Cask strength editions are quite worthy as well, but you have to keep an eye on how many are produced. Something like Glenfarclas 105 will not go up in value, as it is a core range and many thousands have been produced, however a limited run of a cask strength bottle such as a Glenfarclas family cask will most likely increase in value, or a bottle such as a festival release with limited numbers.

Also popular are the bottles from first releases from new distilleries. However buying these on the secondary market soon after release usually means the price has been distorted by flippers, so it is always better to buy straight from the initial point of sale.

3. Know of the potential value of the bottle before you buy.

Yes, it is nice to get your hands on a rare Glenugie, the Peterhead distillery that was the first distillery to close as part of the 1983 mass cull of distilleries due to a surplus of production. However when buying such a bottle, it is always better to get it straight from a retailer on the primary market. If you buy such bottles on the secondary market, such as from an online auction or whisky broker, then you have to be aware of the going price for the bottles. While you may be happy in paying £400 for the bottle at auction, it’s not really a good investment if the ceiling for that bottle is £450. A closed distillery may not be the best example, as eventually supply will run out at some point, but the same goes for any bottle. Look at those people paying over £2000 for a Macallan Genesis – the market price has seen a lot of these bottles sell now for around £1400 at auction. Yes, given time the price will probably go back up again, but that depends on how demand continues for them. If you overpay, then you have to hold onto the bottle for longer to realise a profit, or stand to make a loss.

It’s worth pointing out that in some cases, original bottlings often are more profitable than independent bottlers, but this is not always the case. Buying a whisky bottled by Signatory, Gordon & Macphail, Cadenhead, Adelphi, James Eadie, That Boutique-y Whisky Company amongst others can realise good prices. Certainly an Invergordon 42 year old whisky from TBWC I’ve been chasing has certainly increased in value, and I know from the bidding action it is very much in demand. I think the original release price for Batch 15 was in the region of £115. I had to pay close to £200 once auction fees were considered. However, I have tasted it in the past and it is a great dram, making a good explanation for why the price has gone up.

4. Know your potential buyer

When buying, think about who is likely to buy what you are selling. This is why gimmicks like the Game Of Thrones whisky wasn’t really a good investment. Apart from those complete sets flipped just after release, it is rare to see a complete set break even. It is unlikely to ever make much of a profit if any at all. Limited editions tied to a TV show are unlikely to make money as they are normally manufactured in large amounts.

‘Limited Edition’ is often a misnomer, as something produced in its hundreds of thousands, but only made available for a 6 months or so is still technically a limited edition. You need to see my article on Game Of Thrones whisky to understand that the only people likely to buy this are fans of the show. And they’ll already have a set or two. With no real auction demand, unfortunately you are stuck with it or will not be able to sell for any profit. Remember most auctioneers take between 5 and 10% on the hammer price which when Game of Thrones has already got a hammer price well under the original RRP makes the blow a little bit harder.

This is why I always advise do not buy anything you are not prepared to drink. Buying bottles like Macallan, Ardbeg and Highland Park may have higher prices, but there is a healthy secondary market for these bottles, as people buy them to drink, especially whisky bars in Asia who’s clientele are demanding rare whisky and are prepared to pay for it.

This is also the risk in single cask bottlings. You need somebody to want the single cask whisky you have as there can be duds going about that haven’t been well received, but this can be mitigated by buying from an in-demand distillery. It’s hard for me to suggest individual distilleries, but I myself have usually restricted myself to single cask bottlings from GlenAllachie, GlenDronach, Invergordon, Glentauchers, Dailuaine, Benrinnes and Tamdhu. I have other single casks, but these for me are the brands I like.

5. Don’t overstretch.

It goes without saying that you should not overstretch. If you are a low grade investor, the best advice I can give you is set a budget for what you are prepared to spend to collect. Perhaps a monthly budget – you don’t have to spend it all in one go, but perhaps roll it over to another month. What ever you do, it is important not to spend more than you are prepared to drink, as there is a possibility that the situation may happen. With that in mind, it is also helpful if you collect stuff that you would enjoy drinking – if you don’t like peaty whisky, then there is no sense in collecting Ardbeg for example. Just in case, you understand! It all depends whether or not you are prepared to take the risk.

6. Speculate to accumulate.

As with any investment, you have to consider what bottles give most value. I’ll put it here that if you are only going to collect bottles at £30ish then the chances of any sort of profit are minimal. They are not extinguished, but from my experience the more you can spend on a bottle, the more it is likely to have a chance in going up in value. I can give three examples to show relative profits.

Aberlour 10 – decent enough whisky. Can be bought for £35-45. I am aware that it is getting discontinued in favour of a 12 year old expression. This whisky is mass produced, and while a decent whisky there will be a lot of this hanging around in people’s drink cabinets. It’s a simple yet pretty good value Speyside whisky. However, it is highly unlikely in the period of 10 years to double in value.

Old Pulteney 17 – Another mass produced whisky, but perhaps not as much as the Aberlour above. This was discontinued in 2018. It was reviewed by American YouTube vBloggers Scotch 4 Dummies as potentially the best Old Pulteney ever. Cost used to be £74ish. I’ve just had a look on Amazon, and the cheapest new one they are advertising is £203. It can be had a lot cheaper elsewhere, but the thing is that editon was a very popular whisky. Just looking at one auction site, the price has peaked at £110, yet averages at £85. It has only been discontinued for two years, so many of the people buying it are likely still to be drinking it. Once supply narrows down, this will be a good whisky from an old era. The price is likely only to do one thing.

Bruichladdich Octomore X4+10 – Now we look at a whisky that was a limited release. £150 on release and only 3000 produced. Sold out instantly. This is a quadruple distilled whisky at 70% and ten years old. However it was only in a 50cl bottle. However just looking at one auction site, this peaked at £281 some three months after release and now sells for anywhere between £210 and £250. Even at the lower value, thats £60 in less than a year on an initial investment of £150. As these get drunk, the value will only go up, but will reach a ceiling value of which I estimate to be in the £300 – £350 range maximum. I own two, and I can guarantee one will be getting cracked open.

Can you see the pattern? The more that gets spent on a whisky, the potential to realise an in value increases also. In my experience if you spend below £100 a bottle as an investment, you are unlikely to see great profits and it may only hold its value. Factor in selling costs and you may only break even. However, if you are collecting as a hobby because owning certain whiskies or brands gives you an amount of pleasure and pride, then profit is not your main motive so you should not expect to make any. Harsh, but fair as you’ve received value in the pride factor and not the monetary factor.

7. Be aware what is getting relabelled.

For those who want to collect a specific whisky, they are more likely to be looking for all variants of it. So when a distillery is rebranding, people will want the new style in their collection. Doesn’t necessarily have to be an expensive whisky. Example – GlenDronach, BenRiach and Glenglassaugh were all sold by Billy Walker to Brown Foreman. While there has not been a rebranding of all the whisky (BenRiach recently has undergone a rebrand), there has been subtle changes to the bottles, such as the new Master Blender signature changing to Rachael Barrie instead of Billy Walker. This gives the bottling a distinct ‘marker’ of when it was produced, therefore collectors in the future will easily be able to tell the era the bottle was from.

Another distillery that has rebranded, Glengoyne, recently had it’s 18 yr old expression for sale on Amazon for £20 less than normal retail, possibly in an effort to sell old stock. That is good for drinkers (cheap drink!) but is also good for collectors who have more margin to realise a profit should they ever sell.

This is why with intelligent buying, you don’t have to go for the expensive whisky. It can be enough to buy an affordable bottle and just wait for a rebrand or a recipe change. An example is GlenDronach 15 Revival. The original recipe had to be discontinued for three years due to lack of sufficient stock to make up the malt. Three years later, it reappeared and has since undergone another recipe change according to my sources. The original bottles have increased

8. Be aware what is getting released or discontinued.

First bottlings from any distillery are usually a safe bet, especially if in limited numbers. Be careful if you are buying them on the secondary market as you may be overpaying, Similarly be aware of what is getting discontinued.

It can help being on the mailing lists of distilleries to see when new releases are coming. Often that gives you access to any ballots for limited releases or first chances to purchase. I used to be on the mailing list for a few distilleries, such as Macallan and Ardbeg, but have now decided to cut back as I am no longer really interested in these brands enough to be on their marketing lists.

9.Make sure you have a place to keep your collection

It’s all well and good collecting whisky. But if you are not drinking it, or not drinking it quick enough, then you will have to ensure that you have somewhere to keep it. If you are collecting for investment, then you need to make sure that it is in a place that keeps your bottles in prime condition. I’ve written on this extensively here and here (click on links) but to quickly summarise it needs to be somewhere not exposed to constant light and the temperature has to remain stable and not at extremes – lofts, attics and garages are not good places. I personally have a storage locker, but that comes with its own risks – see here

10.Make sure it is covered.

Again, I have gone into this in detail before here and here, but regardless of where you keep your collection, make sure that it is covered under insurance. Keep an eye on the values of any high value bottles as they may go up and exceed the single item limit on your house insurance. Having large amounts of bottles in your house may also compromise your house insurance too if there was a fire. Best look into specialist insurance. This is a given if you are using a storage facility – get professional whisky insurance and don’t rely on the insurance offered. There are normally limits on alcohol pay outs -my first storage location limited me to £10K.

11.Keep an eye on the value of your collection.

You need to keep an eye on the value of your collection for a few reasons. Firstly and most importantly is for insurance purposes. This will make sure you have adequate cover for your collection.

Keep a regular check on what the more expensive bottles in your collection are doing at auction. These are the bottles that you stand to make the most profit on if bought at the right price, but equally could be the bottles you lose most on. You may find that the price is dropping as a bottle is going out of favour and it may be a good time to sell. However, don’t let one or two auctions be the decider – use a service like Rare Whisky 101 to check every so often to see the average prices. Investment in whisky bottles is best played out over the long term, similar to any investment, so it is sometimes better to hold your nerve.

12. Selling.

If collecting to realise profit, then you have to keep an eye on how to sell it. There are limited options as it is illegal to sell alcohol without a licence, therefore you have to use an auctioneer or a broker. These often come with charges or commission, so you have to factor this into your final profit or loss.

Auctions are a risk as you need somebody to want to buy your bottle for it to sell. Ideally you want two or three people to want to buy it, as a bidding war often results in a better price for you. But here’s the hint why you don’t really collect stuff off the supermarket shelves – its been made in its thousands, supply is likely plentiful on the secondary market, therefore people don’t have to have bidding wars.

The other risk in selling is that you have to ensure that you are not selling in quantities regularly enough that could attract the attentions of the authorities. You may be selling in such a way the tax authorities may deem you as a trader. This could have legal as well as tax implications. Advice I have been given in the past is that if not selling everything at once is sell in larger tranches.

You have to be aware that selling bottles of whisky, this can expose you to tax liablity, especially Capital Gains tax if you reside in the UK. This is because unlike casks of whisky, bottles are not seen as a depreciating asset and therefore can be used in any tax liability. Of course, this depends on how you sell it as you will also need to avoid being seen as a trader too if conducting frequent sales. A reputable whisky broker will be able to advise you.

Conclusions

l would like to point out that this is not an exhaustive list. If you decide to collect for profit, then all I can really say is do not spend more money than you can afford to lose or drink. It’s a hobby, do not let it be your downfall. If you want to make bigger levels of profit for less work, I’d consider cask purchase ONLY THROUGH A REPUTABLE DEALER and not through any of these advertised investment schemes. Cask investment also potentially comes with some large tax costs and you need to have a plan on what to do once the cask reaches maturity. Essentially the only way to make profits is to sell in bond.

It doesn’t take a genius to see that collecting in whisky is becoming more and more popular. However I feel in the UK that we are potentially in the path of a perfect storm that may crash bottle auction prices and also affect the industry as a whole. Back in the 1980’s the whisky industry severely constricted due to oversupply. Whisky distilleries were shut wholesale, some never to reopen. The term coined for the period I’ve often seen as the ‘Whisky Loch’. Well, I feel we are reaching a point that we now have a Glass Loch building in the cupboards across the UK. Supply has never been so good, and with many new distilleries coming online, people are seeing bottle collecting as an easy way to make money.

However, I feel the dam holding back the Glass Loch is on shaky foundations. While auction prices are healthy at the moment, the global economy may not be. Without taking the political view but based on fact, the UK economy is in a very precarious position, caused by the Coronavirus and the potential effects of Brexit. Should the economy fail and there is mass unemployment or raised taxes, there will be a pinch on the pockets of the public. People will then see their whisky for what it is – a luxury. Faced with having to make mortgage payments, I predict that a good many people will be selling parts of their collections or even in their entirety. This will have the result of potentially lowering secondary prices.

This has two outcomes for us as collectors and investors. Falling auction prices mean availability of bottles at reasonable prices goes up. Any investment in whisky should always be seen as a long term strategy. Buying cheap now at auction could realise great benefits in the future. But in the second outcome it also potentially means that our collections go down in value too. Hold your nerve as long as possible. Those people who do will benefit, as the lowering of prices will also potentially mean more of those collected bottles get drunk or end up in the hands of those who will drink them. A shortening of supply means when the market swings back the other way, our bottles will be that little bit rarer. And worth more.

Please realise that I am not a professional and am only writing this based on my experience as a collector myself and what I have seen in market performance within the secondary market. I cannot reiterate enough that you must only purchase what you can afford to drink or are comfortable to lose.

Last bits of advice? Collecting for personal enjoyment or profit can give immense levels of satisfaction. You can learn lots about the whisky industry as you research your bottles. Have fun but remember that when the fun stops, stop.

And don’t forget to open a bottle in the stash every now and again. Collecting without tasting is a bit soulless.

Yours In Spirits

Scotty

Index of tastings here

Index of articles here

This is written as a hobby, and I appreciate your likes and shares, either on WordPress, or why not visit one of my other social media channels. Lets spread the whisky love!

Scotty’s Drams encourages responsible drinking. To find out the facts about drink, and where to find help if you need it visit Drinkaware.co.uk by clicking on the link.

Photo Credits – Subject to copyright.

All Photos – Authors Own

Venn Diagram – Authors own.

The Milk of Human Kindness isn’t Dairy.

Taste Review #72 – Glenfarclas 2005 Distillery Exclusive Cask 2855

It’s better late than never. I didn’t plan to run out of reviews in the summer, but an extended trip offshore of 16 weeks meant that I would have to be going some to have that amount of back dated reviews. I fear that this may happen again in the future, so keep yourselves braced for a period of inactivity here – however just because I may be down, I am most certainly not out.

As you will know from previous articles, my storage locker in Perth got flooded the same day that I came home from my last offshore trip and I sustained a considerable amount of damage. As I write this, I am still none-the-wiser as to what the insurance settlement is likely to be. I had already ordered some whisky online while offshore, and the morning after the flooding I realised I could not pick this up in person, so asked the retailer to ship it to me. When I contacted them they said if I added one more thing to my basket, they would ship the whole lot to me with no extra charge. As I had not seen the damage at my locker, and fearing for my Glenfarclas bottles from BP Magnus Platform 25 and 30 year anniversaries, I decided to order another Glenfarclas – this one the 2005 14 year old that was destined to be released as part of the now cancelled 2020 Spirit of Speyside. The retailer mentioned he had an open bottle, and if there was still some left when I next called by, I would be able to get a sample.

*Glenfarclas Visitor Centre. Closed for 2020 season.*

They say bad fortune often happens in threes, and I already had been stuck offshore, flooded whisky and a few days later, my wife had an accident in the car when she hit a small deer, damaging the bumper that had only just been replaced in March from a previous accident. Spirits were low, but the day after the accident I receive an unexpected parcel – a sample of the 14 year old Glenfarclas. It was a certainly well timed boost to morale.

In all, within the whisky community (although I prefer to hover around the edges) I have not experienced such an outpouring of sympathy for my phlight with my storage unit. Even my insurers so far have been brilliant and I await the outcome of my claim. But time waits for nobody and it’s time to look and move forward with the blog and look to the future. So without further ado, let’s move onto the tasting.

Details

Region – Speyside Age – 14 y.o Strength – 58.2% Colour – Brown Sherry Cask Type – Sherry Butt Colouring – No Chill Filtered – No Nose – Figs, rum and raisin ice cream, dark, berry fruits, blackberries, slight leathery nose. There is a note of dark roast coffee powder too. Palate – quite tame without any water considering the abv. A pretty smooth arrival with a gradual rise in heat through the development. Waxy mouthfeel, with dried fruit flavours as is typical with sherried whiskies. This has the Glenfarclas DNA all over it. A hint of stone fruit, perhaps cherries. Finish – quite mellow while neat with a medium to long finish. A slight sulphur note, but this was quite pleasant, a good meaty malt. Water intensified the spicy wooden character for me, and was slightly tannic, giving me bit of a dry mouth.

Conclusions

This bottling left a bit of a sour note. It is / was only available through 2 retailers – The Whisky Shop Dufftown and the Speyside Whisky Shop in Aberlour. One of these retailers had a bit of a situation where somebody buying a bottle complained about the dispatch and shipping only it was getting sent straight to an auctioneer. That is pretty sharp for a flipper – at least let it reach your hands. It’s only £150 and despite being limited, it’s not sold out so it’s a bit of a risk trying to flip so early. Thankfully, the two I saw at auction only realised £140. Accounting for fees, the flipper only made £123 – a £27 loss minimum as the shipping hasn’t been accounted for.

As an aside, I feel for special releases that specialist retailers and auctioneers could refuse to take such consignments, as this is something that often pushes limited whisky out of reach of the genuinely interested in the liquid. But that’s a conversation for a different day and seeing how specialist retailers have been battered by the effect CV-19 on the economy, who can blame them for taking a sale?

The other sour side was that I had a wee bit of a conversation with somebody on twitter who reckons this bottle at £150 is over priced, as you can buy the 25 year old at Costco for £99. In fact the guy’s post I felt was quite arrogant, suggesting anybody who knew anything about whisky would know the 25 year old is a superior dram. Well, that’s fine if you have a Costco card. Even if I did, by time I drive back and forth to my closest Costco, I’ve lost the savings in the price of diesel getting there.

Plus, the guy made the mistake of assuming I had bought the 2020 release and hadn’t tasted it. Well I had – and while I never proclaim to know everything, I know that the other mistake the guy was making was getting hung up on the idea older is always better. It isn’t. I’ve tasted the 25 also and in my opinion the 14 is better. The higher price reflects the fact the bottling is limited. The 25 year old is freely available. I personally think anybody who knows anything about whisky would also realise the 25 year old is only 43% while this is cask strength at 58.2% and a true whisky lover won’t shop for it in Costco but support their specialist retailers. Touché.

To complete the verbal tennis match, the 25 year old is also available at the same price on Amazon. That would save the young man wasting their time and fuel in driving to Costco, but we all know what I think about shopping for whisky on Amazon. Game, Set, Match.

Moving on, I did really enjoy this whisky. The high abv was very easy to drink neat with very distinct sherried notes. Adding water for me spoilt it as it accentuated the spiciest parts of the profile and killed the fruity notes I had been enjoying. I felt it matched the experience I had last year with a 1973 Family Cask, likely to have been about 40 years old. As I never saw the bottle, I didn’t know what year it had been bottled.

Whether or not it’s over priced, well that’s subjective as it all comes down to the taste and everybody will have an individual opinion. It’s certainly not a bottle for every day drinking, and while I can say you won’t be disappointed £150 is a bit much for many people to drink on a regular drinker. What auction prices do remains to be seen but I doubt that it will go up that much in value unless a few get drunk. Initial low auction values may encourage a few to get cracked open. It’s meant to be drunk really.

The last few bottles are still available from the Speyside Whisky Shop, the Whisky Shop Dufftown having sold out. It should be a good bottle to have in a collection as if bought at £150 or below, should it not go up in value then it’s still an affordable bottle to drink and really enjoy.

I’m grateful to Matteo for the kind gift. The milk of human kindness isn’t dairy – it’s definitely distilled!

Scotty

Index of tastings here

Index of articles here

This is written as a hobby, and I appreciate your likes and shares, either on WordPress, or why not visit one of my other social media channels. Lets spread the whisky love!

Scotty’s Drams encourages responsible drinking. To find out the facts about drink, and where to find help if you need it visit Drinkaware.co.uk by clicking on the link.

Photo Credits

All Photos – Authors Own

Under The Hammer

Why you need to be careful with on-line auctions

For a few years now I have been a regular user of on-line whisky auctions to start boosting my collection, as well as selling some of my bottles that I have no further need to keep. Recently I have spent some time selling around 40 miniatures at auction and was very happy at the price that I received. I also was selling my Macallan Folio 5, which I needed to get rid of on account of the amount released – it didn’t have the rarity value that I desire to enable to keep it. Of course, I then had to contend with the flippers and those also offloading their Macallan purchases that didn’t meet their expectations.

Throughout this article, I am not going to mention any auctioneers by name, however I will give the websites of the auctioneers that I use for buying, selling or both.

While on-line auctions offer a relatively easy way of buying and selling there are a few things that you need to be aware of that can catch you out. This is in particularly true when you are trying to sell something at the same time as a lot of other people. Unfortunately this was the problem that I had when selling my Macallan, and it isn’t just the auction you are taking part in – there are often two or three on-line auctions running at the same time. Of course many of those in the market will often see the way prices are going between the auctions and will bid accordingly – if they get outbid on one auction site, it is no problem just to start bidding on another site.

In my case, I wanted to offload my Macallan as soon as possible, so I had to pick an auctioneer that was going to hold an auction soonest and that I was able to get the bottle submitted in time. One thing you have to consider is that some auctioneers have better exposure than others, but the flip side is that those auctioneers are also more likely to have more submissions of the same article when it comes to trying to offload a sought after release. One thing that counted against me was that one of the biggest auctions was taking place when my auction started, and it had 200 Macallan Folio 5 for sale. It goes without saying that the more there is of something available, this then suppresses the price somewhat, but the good thing is that for Macallan Folio Editions, the demand is there, so you shouldn’t suffer. Perhaps I should have put that in italics, as there are no guarantees.

If you are worried about the price that you may receive back for any sales, the important thing is to place a reserve on it. This usually costs an extra £4 – £7 depending on auctioneer. I cannot stress this enough – perhaps it is better not to sell something that doesn’t make it’s reserve, and gives you the chance to either re-submit it to another auction or perhaps keep to sell another day. It gives me no pleasure to report that one of my friends in the whisky community went to sell his Macallan Easter Elchies Black 2019 and the auctioneers recommended no reserve. To my friends dismay, there was 90 other bottles in the same auction and as a result lost around £100. So, if you need a return – set a reserve.

*Don’t get hammered at auction. Stick to your price and don’t overpay*

Setting a reserve is something I think is also being used by some to manipulate the market, especially in the case of new releases. Many auctioneers do not let you set a reserve above Recommended Retail Price (RRP) for 6 months after a new release in an attempt to help stop the flippers setting high reserves to guarantee them a return which in my view is greedy, immoral and detrimental to a whisky release where people see pound signs instead of the liquid in the bottle. Admittedly, the best this can do is just kick the can down the road in limiting the prices, and anybody is free to bid above the RRP, but at least limiting reserves helps others. One auctioneer that I deal with has said they use common sense and don’t limit any reserves but it’s on a case-by-case basis. If it’s not unreasonable, you’ll get a higher than RRP reserve.

Not all auctioneers are the same, and when thinking about the reserves I have seen on other auctions for Macallan Folio 5, one around the same time had a bid on it for £600 and still had not reached the reserve price. In my opinion, the auctioneer is assisting the flippers, and it’s a bit unfair to those who value the whisky over the profit. What was not understandable is that there were several others available in the same auction – so why would somebody bid on one bottle way over the price of others that were available in the same auction that were a lot cheaper. If there is a bottle I want in an auction, and there is more than one available, I bid one, then if I get outbid, I then bid on a cheaper one. I personally think there is more behind the bidding of a bottle that seems to have had more bidding action than others, but we will deal with it later.

Some auctioneers publish reserve prices, and I think that is a good idea, as you know straight away what is expected, and you can tell if somebody has overvalued the whisky. If the reserve is hidden, then you should only bid to a level that you are comfortable with and don’t be tempted to incrementally bid to find out what the reserve is as you may be stuck with a bottle you can’t afford or may be overpaying for.

And this is a really important point. Generally speaking in a conventional auction, you can see who you are bidding against, as there will be an assistant on a phone or at a computer terminal. With an on-line auction you don’t have that facility. Sniping a bid (bidding at the last moment) has been eliminated by on-line auction by any bidding automatically extending the auction, but shill bidding I think is also prevalent as well. While auctioneers say that they are on the lookout, sometimes the bidding patterns don’t make sense, when people are bidding on one item, when there is another one equally as good but a lot cheaper. My whisky auction insider says there is very little that can be done to detect this, as it will only really show up if using the same hub. If your friend or family relative is bidding from another location, there is pretty much no way of telling.

One other hazard of on-line auctions is that you are physically unable to check the merchandise. If you have any doubt at all, make sure that you contact the auctioneer – they will supply extra photos on request, and if it is practicable they may allow an in-person visit to inspect the item. Not so handy for those of us who live in the more remote areas. You need to be sure you understand what you are buying.

I cannot recommend this enough, and be aware of what you are buying. RESEARCH! Know the price for a given condition. I’ve seen many auctioneers optimistically list lots as rare, but they aren’t. A quick look through other auction sites will reveal how often these turn up. I was recently given a wee task to source a bottle with a specific distillation date as a birth date. This wasn’t the easiest to find, and certainly getting harder to source, but does this make it more expensive? No – it doesn’t. If one shows up at auction then you can bet your bottom dollar another one will eventually. Set your price as to what you want to pay and wait.

Deciding your price is crucial. By all means do not bid your maximum price straight away, as often people will keep bidding until they outbid you. Best put a lower maximum in, and as soon as you are outbid, bid again. That way you may be able to pay less than the maximum you were prepared to as some people give up when they see somebody consistently upbidding them.

One thing my auction insider let me know is that they are presented with a large amount of fakes. OK, perhaps not masses, but the percentage is higher than you might expect. I have one bottle that I bought at auction for £35 that was part of my bargain basement hoovering towards the end of an auction to buy a whisky from the 50’s or 60’s. I had to query it, as the volume and strength were not printed on the bottle, and the label felt wrong. While the auctioneer assured me that this bottle was not a fake, I have my doubts, therefore will not be drinking it, but use it as a show piece. Do not assume that the auctioneer has spotted a fake, as it isn’t always apparent, and if they are handling hundreds or thousands of bottles for one auction, there is the chance one may slip through. It is also wrong to assume it is high value bottles that are the ones being faked – those are the ones that are checked more closely. It will be the cheaper ones that may suffer from counterfeiting more often than not.

The archive at Macallan distillery when it opened in 2018 was found to contain suspicious bottles. If they can’t tell, what chance have you got?

My last point is that beware of auction hype. One auctioneer had a superlative auction of a private collection that was to be broken up. Yes, there was some spectacular bottles there, but they were in the minority. A lot of bottles were missing boxes or had low fill levels. Just because it was part of an extensive collection does not make that worth any more. In all it was quite disappointing, Due to the Coronavirus, I am not sure if the second part will go ahead as planned in April 2020, but we will wait and see. Given the quality of the first half, I am a bit underwhelmed. If you have done your research, you will know what it’s worth, and bid accordingly – don’t get carried away and overpay, unless it’s a must-have for your collection, though even then exercise a wee bit of caution.

But for all the pros and cons of on-line auctions, I have bought older bottlings a lot cheaper than I would have got them retail. I have been able to complete collections that would otherwise be impossible, and I have been able to drink some unusual and rarer whiskies. You just have to keep your head when everybody around you in the auction seem to be losing theirs.

There is a list of on-line whisky auction sites I use or regularly browse below.

Slainte Mhath!

Scotty

Whisky Auctioneer – http://www.whiskyauctioneer.com

Just Whisky – www.just-whisky.co.uk

Whisky Hammer – http://www.whiskyhammer.com

Scotch Whisky Auctions – www.scotchwhiskyauctions.com

The Grand Whisky Auction – http://www.thegrandwhiskyauction.com

Whisky Online Auctions – https://www.whisky-online.com/auctions/

Speyside Whisky Auctions – http://speysidewhiskyauctions.co.uk

Royal Mile Whisky Auctions – http://royalmilewhisky.auction

Robert Graham / Global Whisky Auctions – http://www.globalwhiskyauctions.com

WhiskyAuction.com (Based in Germany) – http://www.whiskyauction.com

Index of tastings here

Index of articles here

This blog is written as a hobby. If you liked this article, consider following the blog by clicking on the icon at the bottom of the browser page somewhere to get tastings, visits and articles to your email inbox. Or join me on my other social media channels below. Also, feel free to share, and spread the whisky love ❤️❤️

Scotty’s Drams encourages responsible drinking. To find out the facts about drink, and where to find help if you need it visit Drinkaware.co.uk by clicking on the link

Photo Credits

All Photos – Shutterstock

All content is subject to copyright and must not be reproduced without prior permission.

Prepare to Lose Your Bottle

Why sometimes you just have to let go….

At the present moment as I write this, I’m in the middle of auction fever. I currently have 5 lots at auction and by time I publish this it will be 6. Of these, 5 are miniatures and one is my Macallan Folio 5. Unfortunately when browsing the auctions something came up that is part of a collection that I have and is rare. So rare I’ve only seen one at auction in 6 years, and I doubted if it actually existed, but when it came up it was plainly obvious that I had to have it. The bottle in question was a Dailuaine Flora and Fauna bottle with the white cap.

***The bottle in question. No box though (SWA)***

For days it sat at just over £100. Then just before the end of the auction, it went up to £380. That was about the amount I thought it was worth despite the rarity, but even after the end timer for the auction started it continued to rise. And rise. And rise. And yours truly continued to chase it.

It was once it breached the £500 barrier that I questioned myself, how badly do I need this? I had convinced myself I did need this, but doubts crawled up into my mind. There is hardly any of these bottles around – anybody can replace a capsule on a bottle to make something look rarer. Whilst it looked like a genuine capsule, there were crinkles on it which made me doubt. Indeed, a look on the same auctioneers website from the previous auction revealed a Mortlach 16 Flora and Fauna with a completely incorrect capsule which means that bottle was definitely suspect.

*A first edition Flora and Fauna Balmenach. Not as rare but going up in value*.

Don’t believe fakes make it to auction? Well just last week I was speaking to somebody who worked at a very reputable online auctioneer who assured me they used to see tons of fakes being brought in to attempt to enter the auction. And it’s a sad fact that some of them sneak through – and that isn’t limited to online auctions either.

We come to the bitter truth. I have paid more than a Flora and Fauna bottle but that is because I was chasing it, and I ended up slightly overpaying. The trouble with online auctions is that you never see who you are bidding against. I’d worked out there was probably at least 2 other people interested in that bottle, and the price could have skyrocketed had I continued. I pulled out at £600, with my tail between my legs. The bottle eventually sold at £750, which confirmed my suspicion that there was at least 2 other bidders.

I was disappointed. Gutted. But remember my advice that I have given to you in the past – auction prices do not include fees. So at £750 hammer price, if the person was a UK buyer, the true cost was £840 before shipping costs. Even writing this the morning after, I still don’t feel I dodged a bullet. It has to be looked at in the cold light of day – that would be £840 I would never drink. It would sit in my locker and probably not make any money. And would I get joy out of it? Certainly not 840 quids worth.

So, I placed a cheeky bid on a 24 year old Invergordon and retreated upstairs leaving my phone downstairs so I couldn’t do any consolation buying. I did some ironing instead and watched some programmes about Scotland I had saved on my Sky box. Unfortunately I couldn’t have a dram as drink-ironing could have disastrous consequences, and having some shortbread to complete the Scottish feeling? My clothes need to be crease and crumb free so that was ruled out too.

*Here’s one I chased earl*ier. Didn’t overpay though.

No matter how much you want a bottle, you have to know its true worth. Even if it’s worth more to you than its actual value as a commodity, sometimes you just have to walk away and remember – if one has shown up then another one will. In both cases when I bought a rarer white cap Flora and Fauna, another one turned up at the next months auction as perhaps people see how much these are selling for and decide to cash in. So fingers crossed.

Being a bottle chaser is a blessing and a curse. You can achieve a fantastic collection, but at what cost? In the cold light of the day, if you are not drinking it but collecting as you hope it to be worth something, you have to keep the emotions in check. Out of the 17 white cap Flora and Fauna collection, I have 15. That’s better than probably 99.9% than others who have the same set.

By all means, if this is what you want to achieve, you have to hold your nerve, but be careful you don’t ridiculously overpay. There is no shame in losing your bottle at all if it prevents you being ripped off.

That leaves me with a closing thought. That do you think my wife would be more shocked at? The fact I was prepared to pay so much for a Dailuaine or that I actually did some ironing?

Oct 2022 postscript. In June 2021 I eventually found both a Caol Ila and Dailuaine white cap Flora and Fauna. The combined cost was still less than the Dailuaine I missed out on.

Yours in Spirits

Scotty

Index of tastings here

Index of articles here

This is written as a hobby, and I appreciate your likes and shares, either on WordPress, or why not visit one of my other social media channels. Lets spread the whisky love!

Scotty’s Drams encourages responsible drinking. To find out the facts about drink, and where to find help if you need it visit Drinkaware.co.uk by clicking on the link.