Is Japanese Whisky a Good Investment?

Whisky, especially unopened bottles, enjoys a special status as an investment due to its ability to maintain quality over a long period. Unlike wine or watches, an 18-year-old whisky typically remains an 18-year-old whisky, offering a more reliable investment opportunity compared to many other luxury niches.

Is Japanese whisky a good investment? It's a complex question that requires a nuanced approach. In my opinion, and considering my professional experience owning a whiskey bar, Japanese whisky is excellent but massively overrated and overpriced. While it has gained significant attention and prestige, the investment potential might be limited.

Distillery Challenges and Trends

There are very few Japanese whisky distilleries. However, some notable exceptions stand out, producing products that can be considered unique. These distilleries often aim to replicate the general style of Scotch whiskies. The issue with the vast majority of Japanese whisky lies in the hype and market dynamics.

Japanese whisky has gained considerable popularity due to its unique selling points. Today, many of these wholes are at top-level prices, indicating a high demand and high investment value. However, I see limited room for further appreciation as the complexity and quality of these whiskies are not uniquely exceptional.

Another problem is the frequent re-releases of older products. For instance, many distilleries have claimed they would discontinue certain products due to overwhelming demand, only to reintroduce them later, often within 6 to 12 months. This practice not only creates confusion among investors but also erodes the potential for long-term investment gains.

The Downside: Investing vs. Drinking

One of the key flaws in purchasing whisky as an investment is the temptation to consume the very goods that are meant to appreciate in value. Ultimately, you may find yourself drinking your liquid assets, leaving you with no actual profits to show for the investment.

It's often said that it'd be better to avoid Japanese whisky as an investment, as there are other varieties of whisky from around the world that appreciate in value much more reliably.

The Case for Trying Japanese Whisky

Despite my reservations about its market value, Japanese whisky is still worth trying. The craftsmanship and methodological approach taken by Japanese distillers, who leave few things to chance, result in a high-quality product. These distilleries approach the distilling process with precision, ensuring a consistent and reliable output.

I personally have purchased some Japanese whisky, and found it to be worth the money, both in terms of quality and potential appreciation. However, it's important to approach this investment with an open mind and a bit of skepticism.

Conclusion

If you're considering Japanese whisky as an investment, proceed with caution. The market for Japanese whisky has reached a point of high demand and high prices, which might not offer the best investment potential. Whisky from other regions, such as Scotland or Ireland, might provide more reliable returns over the long term.

However, Japanese whisky is also worth trying for those who appreciate its unique qualities and history. Whether as an investment or for personal enjoyment, Japanese whisky has a lot to offer, even if the investment angle may be less promising.