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The Whisky Auction Market: A Bubble About to Burst?
As I sit here, sipping on a dram of my favorite whisky, I can’t help but think about the state of the whisky auction market. According to a recent report by Noble & Co., the market for rare and fine whiskies has started to drop at an alarming rate. This is a worrying trend, not just for whisky enthusiasts like myself, but also for the industry as a whole.
A rare bright spot in whisky auctions, this 49-Year-Old Single Malt Whisky from The Dalmore recently sold for $117,000.
The report, which surveys the fine and rare whisky auction market, paints a bleak picture. Auction volumes were down 30% from January to April compared to the previous year, and bottles selling for over £100 fell by 36%. The average price per bottle also fell by 8%. These are significant declines, and they have serious implications for the industry.
“This period has been notably challenging for the secondary market, reflecting broader economic pressures,” the report notes.
But it’s not all doom and gloom. The percentage of unsold bottles was relatively steady, and there’s an increased emphasis on buying and selling more affordable bottles, which accounted for 90.4% of volumes traded. Glenfiddich showed the fastest growth in auction sales value, while J. & G. Grant - Glenfarclas had the highest growth in auction sales volume.
Whisky bottles on a shelf
However, the report concludes that there is no sign of any recovery in the auction market yet. The usual suspects - inflation and interest rates - are to blame, but there’s also an oversupply of new releases, which is diluting their secondary market prices.
A whisky distillery
As I finish my dram, I can’t help but wonder what the future holds for the whisky auction market. Will it recover, or is this the beginning of the end? Only time will tell.
A whisky glass