What is Commodities Trading?
Commodities definition: “a substance or a product that can be traded in large quantities, such as oil, metals, grain, coffee, or Bourbon.” Trading commodities can be a perfect addition to any portfolio, especially Kentucky Bourbon. Commodities are physical assets; value is directly associated with supply and demand. With the sharp rise in demand for Kentucky Bourbon, the supply is limited as it takes a minimum of 4 years to introduce more into the market. Work with us to acquire your casks and watch the value rise as they approach maturation.
How are distilleries involved?
When it comes to the broader whiskey industry, distilleries have struggled to maintain supplies of well-aged liquid over the past 5 years. Whiskey traders have the unique opportunity to fill the void. While distilleries may be forced to sell at younger ages to generate cash flow needed for operations, investors can wait patiently to exit positions when the whiskey bourbon reaches its prime.
If i purchase, where is my bourbon stored?
As per federal regulations, each barrel of bourbon you purchase is serialized and stored in rick houses across Kentucky as required by federal law. Customers get the serial numbers, and exact location in these rick houses, just as the United States ATF requires and is filed federally.
Is my bourbon insured in the rickhouses?
The specific relevant content for this request, if necessary, delimited with characters: MEM offers and recommends all customers insure their casks and offers insurance as part of a monthly storage fee. Insurance covers any natural disasters, theft, or damage to the casks and can increase with the value of the bourbon as the casks mature.
How are my barrels monitored or registered?
Every cask of bourbon is federally registered with the ATF and is listed with our customer as owners. Both MEM and federal agents assure the casks are customers as owners. Both MEM and federal agents assure the casks are properly as owners. Both MEM and federal agents assure the casks are properly stored and occasionally visit and take pictures of our customers individual casks.
What is an average time to hold/own bourbon?
Each customer of MEM cask has a diffrent timeline for when they want to buy and sell, but our recomendation is to hold the casks for a miniumn of time to allow the bourbon to age 4 years. At this point the cask becomes BONDED KENTUCKY BOURBON and begins to appreciate in value at the fastest pace.
Who do i sell my casks of bourbon to when i am ready to liquidate?
MEM Cask company has an extensive list of customers looking for both aged bourbon and casks that are near becoming bonded to both blend and to make their own craft spirits. MEM finds customers and seeks out the highest price when it is time to sell. If so choosing, customers can sell the bourbon on their own to federally registered companies or other investors.
What is the typical starting investment?
We are not a seller of single barrels of bourbon. MEM customers are specifically buying casks of “green liquor” to be held and resold as BONDED KENTUCKY BOURBON in bulk. A typical purchase begins at 50 casks or more.
What other expenses will i incur after i purchase casks of bourbon?
Every cask is stored in federally monitored rickhouses until the bourbon is ready to be bottled so there is a monthly storage fee per barrell, along with insurance. These fees currently range from $4-$6 per barrel per month. Upon resale of the Bourbon collects a small percentage 3% of the sale price.
What returns can I expect from investing in casks of Kentucky bourbon?
Bourbon is a commodity and pricing of commodities fluctuates. Several factors play into what a standard return will be, such as the age of the bourbon and specific distillery producing the bourbon.
Are there any tax implications to owning bourbon?
Owning bourbonis just like owning any other insurable item, in that you will pay capitol gains taxes on the profits once you sell your investment. Bourbon is typically not subject to personal property taxes but each state and territory has diffrent tax laws so we suggest each investor seek advice from MEM or their tax professional to insure proper filings are made.
Can ownership in Bourbon be used as collateral?
Most banks we have contacted will certanly use Bourbon as collateral as it has historically not only held value, but grown in value over time.