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Rare whiskey continued to outperform other luxury asset classes during the 12 months leading up to June, according to a Knight Frank report out Thursday.

Prices of rare whiskey increased 25% during that period, the largest pace of growth among 10 mainstream collectible assets tracked by the Knight Frank Luxury Investment Index (KFLII), including art, coins, watches, cars, stamps, colored diamonds, jewelry, furniture, and wine.

Overall, the Index rose 4% on an annual basis. Coins and art are the other two asset classes with double-digit price growth, up 12% and 10%, respectively.

At the end of the first quarter, prices of rare whiskey climbed 35% year-over-year, according to Knight Frank, which uses data from Rare Whisky 101, a Scotland-based company that provides insight and intelligence to whiskey collectors and investors worldwide.

The slower growth rate in prices of rare whiskey during the second quarter is mainly due to a steep downturn in prices for The Macallan, coupled with plenty of supply, Andy Simpson of Rare Whisky 101 said in the report. (Whiskey is spelled with an “e” in the U.S. and Ireland, but not elsewhere.)

But he predicts rare whiskey will appreciate again during the rest of 2019. “Things have since picked up significantly, so we’re expecting a wholly better set of results at the year end,” he said.

A rare bottle of Brora sold for a record-breaking 54,450 at Sotheby's auction in London. Courtesy of Brora

Strong Results from Sotheby’s Whiskey Auction in London

One real-life sign of the market uptick was the Sotheby’s whiskey auction online and live in London, which closed on Thursday.

The leading lot of the auction, a bottle of 1926, 60-year-old Macallan, fetched £1.45 million (US$1.87 million) against a presale estimate of between £350,000 and £450,000. The price sets a new auction record for any bottle of wine or spirit, according to Sotheby's.

A rare bottle of single-malt Scotch whisky from the closed distillery of Brora sold for £54,450, more than three times its high estimate of £18,000 and also setting a record for the distillery.

Celebrating its 200th anniversary this year, Brora closed in 1983 but is set to reopen next year, after a meticulous restoration over three years.

Sotheby’s sale, titled “The Ultimate Whisky Collection” from a single owner with more than 390 lots, realized a total of £7.6 million, smashing the presale estimate of between £3.3 million and £4.6 million. The sell-through rate is 100%.

Classic Cars Annual Return Slipped in Negative Territory

During the 12 months from June 2018 to June 2019, jewelry and classic cars fared the worst, with prices falling 7% and 5%, respectively.

The main reason classic cars slipped into reverse gear is that speculative investors exited the market, while genuine enthusiasts were more circumspect about paying over the odds for vehicles, according to Knight Frank, citing Dietrich Hatlapa of HAGI, a London-based classic car research organization.

Luxury Investment performance 10-year Vs. 1 year Knight Frank

However, the long-term, 10-year return of classic cars is projected at 190%, ranking third in the Knight Frank Luxury Investment Index, only after rare whiskey’s 540% and coins’ 193%.

Rare whisky was first included in the Knight Frank Luxury Investment Index at the end of 2018. The Knight Frank Luxury Investment Index’s 10-year return is expected to have an average of 146%.