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Whisky Could Be the Next Big Thing for Investors

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2011 has been yet another topsy-turvy year for the stock market, with the Dow Jones Index (^DJI) and the S&P 500 (^GSPC) registering growth of 6.2% and 0.6% respectively while the Nasdaq (^IXIC) sunk by 1.6%.
 
With the market proving to be unpredictable, investors -- always on the look out for a good buy -- could perhaps consider whisky.
 
Yes, because the demand for whisky is rising while the supply is decreasing, Michael Kappen -- creator of the World Whisky Index -- foresees that whiskey prices will go up in the long term. Worldcrunch reports that the former banker expects whisky investments to return annual yields at an impressive 12%.

By way of example: a bottled 1995 Brora was selling for around 100 euros in 1998. By 2006 the value had doubled. Today, the 75 cl bottle costs no less than 500 euros.
 
The World Whisky Index presently tracks 46,610 bottles that together are worth 5.62 million euros. The site, created in 2007, brings buyers and sellers together. Whisky fans can build their own portfolio, and buy and sell. The most expensive bottle, a 1919 Springbank Single Malt, is presently quoted at 55,000 euros.

The renewed interest in whisky has already been noted by makers like Fortune Brands Inc.'s (FO) Beam Global Spirits & Wine Inc. unit and Diageo PLC (DE), which have focused their production efforts on lucrative small-batch bourbon made popular in recent years by shows like AMC’s (AMCX) Mad Men.
 
To ensure that you have a good deal, investors should always buy bottles that are limited in quantity, whisky expert and founder of the Whisky Chamber Tomas Ide suggests. Good bets also include whiskys from defunct distilleries like Rosebank, Pittyvaich and the Banf Distillery.
 
Given the investment potential of whisky, we suggest that you think twice before opening up that nice-looking old bottle of single malt that’s been sitting on the shelf for ages. Perhaps you could crack open a can of Bud Light (BUD) or Coors (TAP) instead. 

(See also: Are You Ready for Whisky in a 12oz Can?)
POSITION:  No positions in stocks mentioned.

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