An £11,400 loss on the sale of one bottle of whisky.
Take into account 10% plus VAT sellers commission and the retail to auction crystallised loss is £13,212, or -49.86%.
That was the state of play at the recent Whisky-Online Auctions sale for a bottle of the 2014 release Balvenie 50 year old. The retail price for one of 128 bottles from cask number 4570 is £26,500… the hammer fell at just £15,100.
Why sell such a recently released high end rarity at auction? There’s probably a whole host of reasons from a sellers perspective and one could speculate all day; unwanted gift? Just need the cash? Whatever. Speculation aside, one of the great things about an auction is it shows the true market value for something. I’ve been asked many times if I think the new Balvenie 50’s are a good investment, my answer’s always been no. Certainly not in the short to medium term; long term, possibly; with the lack of old stock at the moment anything’s a definite maybe. A collectors piece? Absolutely… This is without question a halo bottle in any Balvenie collection. If you must have every bottle of Balvenie then you have to get one of these. I hope there’s a very happy Balvenie collector out there… or maybe a happy Balvenie drinker?!
So the Balvenie sold for 56.98% of its current retail price (hammer price compared to VAT inclusive retail price). In a very different area of the market, lower down the value chain, we saw a bottle sell for 600% more than its current retail price.
Whisky-Online Auctions brought the first bottles of Ardbeg Perpetuum to market.
These first three bottles sold for £490, £410 and £400 per bottle. With a current retail price of £70 (and only available from the distillery), I’ve said it before and I’ll say it again – patience is key when buying if you have future gains at all in mind.
As an example, listed among the first few sales of last years (£120 per bottle) Ardbeg Kildalton, highs of £470, £460 and £450 were observed. Currently, the bottle’s selling for around £125 – £140 at auction.
With 12,000 bottles of Perpetuum for sale, rest assured the auction market will be flooded after this years Feis Ile. If you can’t get one on Islay in person, give it six or twelve months, let the dust to settle, and pick one up at a slightly less aggressive price.
Among the highs and the lows, the usual mix of rarities, collectors bottles and good old drinkers prevailed throughout one of Whisky-Online Auctions usual high quality sales.
In what looks to be a run-up to the aforementioned Feis Ile 2015, Islay in general had a great auction.
Laphroaig are moving through a real sea-change in prices for their older discontinued bottles. With its 2009 – £400 low-point long in the past, a bottle of 1980 27 year old (Oloroso) managed a huge new record of £1,450. The 2006 Feis Ile bottle settled on a record £400, more than doubling its 2013 low of £165.
Bowmore saw its 4th release of Black Bowmore fetch £5,900. With a previous auction sale price of £2,700 in 2013 ‘big’ Bowmore’s still pull the crowds. The original Black Bormore first release sold for £4,600, some £400 off its current record but way ahead of its 2010 low of £1,600. Bowmore’s 1972 27 year old also hit a new high when it achieved £700. The most recent price for the 1972 27 year old was £480 and its all-time low was just £120 in 2010.
As a collection, many bottles from the Rare Malts Selection have shown signs of values moving north.
The standout at this auction was a bottle of 1972 23 year old Clynelish which sold for an amazing £825; more than double its previous auction price of £350.
Fellow northern highlander, Glenmorangie, saw a bottle of ‘Traditional’ sell for £135… in 2011 one sold for just £30. Showing how polarised the market is right now, a bottle of Glenmorangie Grand Slam Dram sold for £32.50, its lowest price on record.
With so much chaff and distraction in the market from a new release perspective it was pleasing to see continued buoyancy on the secondary market. Full details will be published in our Monthly Market Watch, however, the first quarter of 2015 looks to have been a success for whisky as an alternative investment. The two core indices for rare whisky, the Rare Whisky Icon100 index and the Rare Whisky Apex1000 index, are both meaningfully up by 7.24% and 4.36% respectively.
One shouldn’t count one’s early Easter chickens just yet but the entry into 2015 has been far more positive than the exit from 2014.
Until next time.
Images courtesy of Whisky-Online Auctions