With UK inflation reaching an all-time high and people across the nation feeling the squeeze on their food and energy bills, it’s more important than ever to ensure that you safeguard your money.
Unfortunately, money sitting in the bank will only decline in value as inflation wears on, thus investing in assets that rise with inflation is of the utmost importance.
One such asset that offers stability in times of economic instability is scotch whisky casks. One reason why scotch whisky is considered an ‘inflation-beating’ asset is due to the very fact of its physical nature.
Physical assets unlike traditional stocks and equities are not tied to public perception but are instead dependent on real-world trade prices and market demand. While the value of the stock market as a whole can be reduced due to inflation, the value of certain physical assets rise alongside the inflated prices protecting your investments.
Physical assets have long been popular among banks, hedge funds, and the super-wealthy as a way to hedge against economic instability and recessions. Recently the cask investment market has opened up to all tiers of investors through the advent of multi-asset brokers and is experiencing powerful democratisation, helping to further boost the market.
Ultimately the value in a cask of whisky is in the fact that people want to drink it. Whisky works particularly well as part of a well-diversified portfolio, sitting alongside traditional stocks and bonds. Scotch casks can provide a port in the storm for your funds, so that you can risk some of your capital on more lucrative but tumultuous assets.