As Trump protectionist policies cause havoc in the global markets and we come to terms with an increasingly unstable geopolitical landscape how do everyday investors protect their capital?
With another uncertain week ahead, confidence in the global markets has been heavily eroded as we witness record reversals in the worlds top indices, bringing to mind the global crash of 2008.
Safe Havens and the Shift Toward Alternatives
Recent gains in the price of gold demonstrate that investors are rattled, running to the hills for gold, a traditional safe haven for capital in tumultuous times. But this isn’t the only option for investors attempting to weather the storm. Increasingly investors are looking to alternative investments as a means of protecting capital, enhancing returns, managing risk and increasing diversification.
Within the broad school of alternative investments tangible assets play an important role, often uncorrelated with the broader financial markets they offer investors protection from the volatility and uncertainty of more traditional asset classes such as stocks and bonds.
Another consideration for investors as a result of the ongoing trade war initiated by the Trump administration is the rising spectre of inflation in the worlds major economies. A high inflationary environment can negatively impact the ROI on some investments which can be hedged by acquiring assets that fare well under inflation.
Premium Spirits as a Resilient Tangible Asset
An investment in premium spirits can provide investors with an asset that achieves these goals, uncorrelated to the financial markets, destined for the retail market it offers an effective hedge against inflation as it’s value reflects the inflationary pressure on prices. Additionally investors have the opportunity to participate in the burgeoning premium spirits sector with consumers increasingly choosing to drink premium and ultra premium spirits as global drinking habits change.
One consistently bright spot in the premium spirits sector over the past decade has been the evolution of tequila into a premium spirit. Increasing demand for aged 100% agave tequila has created a unique opportunity for investors, tequila has historically been consumed as new make blanco spirit without any ageing, with distillers seeing an immediate return on their production. Brands now increasingly require aged tequila to satisfy demand from premium consumers and the industry is catching up with changes in their supply model.
Tequila Investment Guide: Everything You Need to Know
You may be familiar with investing in premium spirits like whiskey, or even in other assets such as fine wine and art.
However, a new contender is capturing the attention of savvy investors: premium cask tequila. Tequila is rapidly becoming the world’s premium spirit of choice, with a firm foothold in the United States and now expanding globally.
The GORDON PWC Tequila Investment Model
At GORDON PWC we assist distilleries and brands in securing their future supply of aged or extra-añejo tequila, fixed at today’s market price. With the participation of our clients we acquire bulk tranches of premium 100% agave spirit which is then allowed to mature for 3 years and subsequently sold back to the distillery or brand as extra anejo for immediate bottling and sale. Providing effective bridge financing for the producers and securing the aged spirit to meet growing demand.
Here at Gordon PWC our clients enjoy the following benefits
- The opportunity to acquire the asset at fair market value.
- A tax efficient investment that attracts no CGT for UK investors.
- A fixed medium investment term of 3 years.
- Full transfer of ownership by the distillery to the investor.
- Option to acquire free trading casks with anticipated returns of up 15% pa.
- Assured return option of 8.5% pa, underpinned by robust commercial contracts.
- Assured return option of 6.5% with an increased upside potential approaching 13% pa.
- An opportunity to enter an exciting rapidly expanding market that parallels Scotch whisky many decades ago.
Meet the Author
Jacob Daniels, Director of Sales & Marketing
With over a decade of experience in whisky cask investment and a strong foundation in project finance, Jacob Daniels specialises in managing premium cask portfolios for high-net-worth clients, combining market insight with strategic asset planning. His leadership in launching innovative tequila investment products reflects his passion for premium spirits and commitment to delivering value-driven, long-term results.
.