Rare whiskies' market: new Eldorado for investors and collectors?
ISSN: 0307-4358
Article publication date: 28 April 2023
Issue publication date: 12 October 2023
Abstract
Purpose
This article aims to analyze the relationships between the different categories of rare whiskies and the opportunities for investors and collectors.
Design/methodology/approach
This article uses indices representative of collectors, market performance and specific from 2008–2022 to a distillery and determine the returns. The author performs stationarity tests, cointegration procedures and the Granger non-causality test.
Findings
The results of this article indicates that average returns are positive. In addition, there is a wide range of annual returns, i.e. strongly negative and positive, leading to possible speculation over short periods. High and heterogeneous volatility accompanies these potential gains. The correlations between the different returns of rare whisky are close to zero, indicating potential gains in terms of portfolio diversification. This result is crucial for investors-speculators that benefit from an additional alternative asset. Cointegration relationships are more numerous in the short run than in the long run, confirming that rare whisky could present potential gains for investors, as collectors have in-depth knowledge of the relationships between the different markets.
Originality/value
Finally, the author discusses the implications for different categories of economic actors (investors, collectors, sellers and producers).
Keywords
Citation
Le Fur, E. (2023), "Rare whiskies' market: new Eldorado for investors and collectors?", Managerial Finance, Vol. 49 No. 10, pp. 1596-1613. https://doi.org/10.1108/MF-02-2023-0089
Publisher
:Emerald Publishing Limited
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