Bourbon has been around since the 18th century, and its popularity has continuously grown, especially in recent years. But does bourbon appreciate in value?
Not all bourbons are created equal, so if you are planning to invest in bourbons, here’s our intensive research.
Does Bourbon Appreciate In Value?
There is no guarantee that every bottle of bourbon will appreciate. Still, two things are for sure: (1) it does not depreciate, and (2) many bottles are worth significantly more than their original purchase price.
The value of the bourbon has something to do with factors such as rarity, commemorative bottlings, signed bottles, and discontinued variants.
In addition, the aging process indicates that each bottle is unique. As a result, collectors are willing to pay high prices for certain types of bourbon.
Factors That Make Bourbon Appreciate In Value
Rarity/Scarcity
Bourbons are released year-round, but September to November are the months with high releases [1], so you have to keep an eye for the rare bourbons. Rare bourbons have higher value, especially since most are limited editions.
Generally speaking, older bourbons tend to be more valuable than younger ones. Limited edition and specially-aged bourbons are usually worth more than mass-produced brands.
Straight bourbons should be aged for a minimum of two years [2], but distilleries prefer to release bottles after six to twelve years.
Increased demand may cause scarcity, increasing the value of the bourbon.
Commemorative Bottlings
Another thing that makes bourbon appreciate is commemorative bottlings.
Most distilleries like Buffalo Trace Distillery, Woodford Reserve, and Evan Williams release commemorative edition items from time to time.
Commemorative bottlings are also released to mark a certain event like Kentucky Derby, so you have to watch out for these if you want to collect bourbons that appreciate in value.
Master Distiller-Signed Bottles
Signed bottles by Master Distillers make great collectibles, so there is no doubt that these bourbon bottles will appreciate in value.
Signing events may allow you to get the signature of Master Distillers for free, but other establishments may require you to buy the bottle on-site for autographs.
Master Distillers in certain distilleries are out for scheduled signings and meetups at bourbon clubs and liquor stores. If you get a chance to have the bottles signed, it will help raise the value of your bottle.
Discontinued Variants
Hard to find bourbons appreciate, including discontinued variants.
Some bottling may have discontinued production because of different factors such as (1) shortage of aged stock, (2) rebranding, and (3) total overhaul of the distillery’s core line.
Discontinued bourbon variants might have an appreciated value unless a bad controversy causes a stoppage in production.
What’s A Collectible Bourbon?
Collectible bourbons are rare bottlings that can be sold for thousands of dollars per bottle.
Collectible bourbon is usually out for auctions, and Pappy Van Winkle’s Family Reserve dominates the category.
Some collectibles are those bourbon bottlings that exist in pre-prohibition (before 1920), as it is illegal to produce and sell intoxicating beverages.
Does Collecting Bourbon Make A Great Investment?
Collecting bourbon makes a great investment for a few reasons: (1) it can be a source of passive income, (2) it gives great ROI, and (3) limited editions cost thousands of dollars.
Vintage and limited edition bottles can be more profitable after ten to twenty years.
It may have risks like any other investment because investing in bourbon will lock up your money for years, but rising prices and higher demands make great ROI.
FAQs
Does bourbon increase in value with age?
Yes, bourbon increase in value with age because older bourbon bottles usually have higher retail prices than the new ones. Older bourbons are rarer, and with this, it gives a higher value to the liquor.
Can you make money by buying and selling bourbon whiskey?
Yes, you can make money by buying and selling bourbon whiskey. However, you must invest in the right bourbons to make a higher profit. Special and limited edition bourbon bottles can be worth more than their original price.
What Makes Certain Bourbons Increase in Value?
Limited production runs, high demand from collectors and enthusiasts, positive reviews from critics, and historical significance can all contribute to a bourbon’s increase in value over time.
Are There Specific Brands or Bottles Known for Appreciating Value?
Certain brands or bottles, such as Pappy Van Winkle, Buffalo Trace Antique Collection, and older releases from renowned distilleries like Stitzel-Weller, are often sought after by collectors and have a track record of appreciating in value.
How Can I Identify Bourbons Likely to Appreciate in Value?
Researching industry trends, staying informed about limited releases, following bourbon enthusiasts’ communities, and consulting with experts can help identify bourbons with potential for appreciation.
Is Investing in Bourbon a Reliable Strategy for Wealth Growth?
While some bourbon bottles have appreciated significantly in value, investing in bourbon carries risks and uncertainties. Factors such as market fluctuations, changing consumer preferences, and unforeseen events can affect investment outcomes.
Can Bourbon Appreciation be Predicted with Certainty?
Predicting bourbon appreciation with certainty is challenging due to the unpredictable nature of market forces, consumer preferences, and industry trends. While certain bottles may have strong potential, there are no guarantees of future value.
What Should I Consider Before Investing in Bourbon?
Before investing in bourbon, consider factors such as your investment goals, risk tolerance, knowledge of the market, and willingness to hold bottles for an extended period. Diversification and thorough research are essential.
Final Thoughts
Bourbon does appreciate in value. When properly cared for, bourbons will be worth more than their original purchase price. Bourbon collectors may consider factors like age, rarity, and condition.
If you’re thinking about investing in bourbon, do your research to find out which brands are the most sought-after by collectors.
Higher demands increase ROI, so investing in limited editions and rare bottles can be a good source of passive income.
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