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RUM as investment opportunity?


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RadyDan (PREMIUM)

Posted 16 May '21 from Czech Republic with 0 ratings

Hello, lately, I have more and more often encountered with alternative investment opportunities such as pokemon cards, lego and much more.
My question is: can be rum a good investment oportunity or value holder?
And can be some limited editions under 1000$ profitable with just holding?
What do you think about rum in connection with investment?

Thanks for your comments and experiences!
Rum in love!
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Immiketoo (PREMIUM)

From Greece with 53 ratings Replied 17 May '21

No. Rum is meant for drinking. Not investing. If you want to invest, go to a whiskey forum.
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Captain Lee (PREMIUM)

From United States with 13 ratings Replied 18 May '21

Some rums clearly appreciate in perceived value, but as far as an investment goes it seems to me that it would be an incredible hassle. Storing a case or two of something isn't a big deal, but once you get to more than that, it will take up a lot of space. There's a limited market for high end rum, never mind resale. And market forces may be difficult to predict. I say if you love rum and want to play with it (and have an easy resale market - this seems much more organized in the EU than in the US) go for it. But if you just see it as a commodity, trade Pokemon cards - they're much easier to store and sell.
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vomi1011

From Germany with 343 ratings Replied 18 May '21

Rum is just exploding at rumauctioneer since they have a location in Europe.
I would rather use whisky as investment but since I like to drink rum myself, I cannot deny that my inventory is now also worth more.
Some Velier Demerara bottlings doubled last year, like SVW 1996, UE30. There is only one problem and that is to buy these bottles. Rum is much more limited than whisky. Sometimes I manage to buy one of only 200 bottles and sometimes not.
I use cryptocurrencies as an investment. You also would have earned more with stocks last year than with rum. That's why it's just a safeguard for me, which I also like to drink myself. If you are familiar with rum then go for it.
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kudzey (TASTING CLUB)

From Poland with 19 ratings Replied 18 May '21

I myself asked about investing in rum on this forum several months ago. I tried to buy some bottles to hold and I'm watching and boring down the prices of collectible rums since half a year ago. Here are some of my thoughts:

-rum investment is subject to high fees. If you buy on auction it is around 10%, shipping is around 30 EUR and shipment insurance is 3%. Conventional investments like gold, oil, commodities or crypto are subject to fees below 1%.

-there are no conventional market measures and the transactions are hard to track. You need to pay a lot of effort, watching auctions and browsing shops regularly, not to mention accessing private collectors on fb and so on. It is just difficult to say how much you will get if you decide to sell at given time. The rarer the bottle the less price data available.

-if you don't put reserve price on auction you can be unlucky to sell very low. No such problems appear when you sell on EBay or whiskymarket.

-regulations of your country can really destroy your investing plan. In Poland you are generally not allowed to bring expensive alcohol to the country from outside the EU. You can't even order online from the GB after Brexit. You need a special importer permission, which requires running a company, not to mention paying excise and importing taxes. For "personal use" you can only bring up to 1l below 340EUR in your plane luggage. Of course you can declare lower value but if it gets damaged you will not get your invested money back from the insurance.

-it occupies much space. I have since 30 bottles of rums and it's already a full cabinet.

-maintainance not as demanding as wine but you still need to watch for the corks -price growth of certain limited editions is almost guaranteed

-you are doing a favor to the future run enthusiasts whom you hold the bottles for. They will be lucky to try a vintage rum. -rum market is similar to what whisky market was 15 years ago. I also expect it will be worth more and grow very fast. Even the most expensive rums are still relatively cheap.

 This all is why I invested in many things (including, as Vomi suggested, crypto) but I will more likely drink the rums I bought some day in the future. I just buy them now before they get too expensive.
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RadyDan (PREMIUM)

From Czech Republic with 0 ratings Replied 18 May '21

vomi1011 I invest in crypto too and yeah they are more yeasy a worthy, but they are just numbers, i more like rum and culture around it, because it looks luxury, you can hold it in your hands, or just be satisfyed of design and maybe that's the thing... rum is much limited and that's why i found it like a good investment oportunity, maybe one day it will be on the same level as whiskey nowadays, so why not invest already today? :)
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vomi1011

From Germany with 343 ratings Replied 18 May '21

If you like rum it's an even better investment then. I just read this article, found it here in the news section: https://www.gearpatrol.com/food/a36407200/bourbon-whiskey-drinkers-switching-rum/ Very interesting, I already heard that many whisky collectors are switching to rum. That's why the prices will rise further.
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kudzey (TASTING CLUB)

From Poland with 19 ratings Replied 18 May '21

Anything you would recommend to get? In addition to Caroni, Demeraras and Foursquare?
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vomi1011

From Germany with 343 ratings Replied 18 May '21

Hampden high ester rums. Especially the old stuff. The 10y estate LROK was released at 47% for 125€. I was surprised by this price. I think that Hampden LROK birds were cheap, they were at cask strength. Old Monymusks, New Yarmouths, Long Ponds. Old Damoiseau bottlings. Rhum Liberation bottlings. Everything that is old.
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Fisherrr333

From Australia with 4 ratings Replied 19 May '21

If you buy right bottles you can get more appreciation than gold, way more. Do your homework, collect unique bottles of the popular brands. Find how to buy from the first hands. I buy three bottles, one to drinking, one for sale short/mid term, one for sale by my kids after I pass away.
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Toni (PREMIUM)

From Germany with 9 ratings Replied 22 May '21

I wouldnt invest in rum as a random person. But as rum enthisiast i wouldnt mind holding more bottles than i can consume short term. If the prices go up, fine. If not perfectly fine (stays affordable). Me and rum are friends with benefits.
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Josef

From Czech Republic with 0 ratings Replied 31 May '21

I saw a beautiful collection of rums recently. If something starts, it is ideal to start.
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vomi1011

From Germany with 343 ratings Replied 31 May '21

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Josef

From Czech Republic with 0 ratings Replied 31 May '21

Nice collection! I recently bought Habitation Hampden LROK 2010, CARONI 15 y, Plantation ITP Extreme no.3.
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vomi1011

From Germany with 343 ratings Replied 31 May '21

The 2010 HV 6y was sold at a better price than the Estate LROK. I'm glad I have three bottles left. Caroni is always a good buy. I'm searching for Savanna Maputo now, found it as a bundle with three other white Savannas.😕
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RadyDan (PREMIUM)

From Czech Republic with 0 ratings Replied 1 Jun '21

these are my rarest and most expensive pieces for now (Zacapa Royal and Dzama XV)

what price do you think they will have in 20 years? :D
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vomi1011

From Germany with 343 ratings Replied 1 Jun '21

Well, I have two bottles of Zacapa 30.
It was around 100€ in 2006 and is now around 500€. As I rated the Zacapa 30 in January 2020, 500€ was my prediction for the next few years. I bought a bottle for 230€ back then.
Royal was around 190€ in 2020 and is now around 270€.
Royal would cost between 800€ and 1500€ in 20 years. 
Many cannot imagine such prices. But the rum market is developing very quickly, it will be a similar development to whisky.
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vomi1011

From Germany with 343 ratings Replied 2 Jun '21

HGML mark, I have the RA from the same year.
It's on sale right now. https://www.rumundco.de/rum-artesanal-jamaica-high-ester-hd-1983/2019-05l
I think that are the oldest Hampdens.
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Andy (PREMIUM)

From United Kingdom with 112 ratings Replied 11 Jun '21

Has anyone been getting online ads to invest as a 'group' in whiskey? It seems like there are professional firms now creating something like a fund structure and buying whiskey in bulk they think will appreciate that specialize in evaluating, storing, and selling whiskey (the hard parts). In theory, whiskey already has such a huge customer base there's probably more of an existing market. With rum being newer on the collecting scene maybe it has more upside compared to other spirits. Maybe a RR member wants to become our resident rum investing expert and help pool some member investment cash :)
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Xpommy

From Australia with 17 ratings Replied 11 Jun '21

Built up quite a collection over the last year. Most expensive was the Don Q reserva de la familia . Picked up the caroni 15 and 17 but hard to find the 12 and 21 without paying a fortune. I just can’t stop buying when I find something interesting online.
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vomi1011

From Germany with 343 ratings Replied 11 Jun '21

@Andy What are the conditions, which bottles or barrels does the fund buy?
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kudzey (TASTING CLUB)

From Poland with 19 ratings Replied 12 Jun '21

Andy: sounds like a nice idea, I think a group of us who already follow the prices can discuss the investment strategies and have a joint funds. At the moment there is a kind of a wall between the EU and UK so joining forces could help us to overcome this. I'm absolutely in! BTW, have your ever thought about RR's exclusive bottlings?
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