Why Alternative Assets
Alternative Asset Investment.
Gold Coins & Whisky Casks
Steadman-Chase helps private investors acquire and hold carefully selected tangible assets outside conventional funds and financial markets. For investors looking beyond a portfolio made up entirely of equities, bonds, cash and property, tangible assets can provide an additional source of diversification and long-term value.
Why Consider
Alternative Assets?
Traditional investments remain an important part of most portfolios. Alternative assets are not intended to replace them.
Instead, they can introduce assets whose value is influenced by different factors.
Gold has an established international market and a history as a store of value. Scotch whisky casks develop physically as the spirit matures, with individual casks influenced by factors including distillery, age, cask type, provenance, remaining volume and demand within the whisky industry.
Both also give investors something increasingly unusual: direct ownership of an identifiable physical asset.
At Steadman-Chase, our role is to help clients understand what they are buying, why a particular asset has been selected and what needs to be considered throughout the period of ownership.
Gold has been used to store and transfer wealth for centuries and remains one of the world’s most recognised tangible assets.
Steadman-Chase specialises in selected British gold coins, including Britannias and Sovereigns, with a particular focus on high-grade examples independently certified by recognised grading authorities including NGC and PCGS.
This means investors are not simply acquiring an unspecified quantity of gold.
Each coin has its own denomination, year, design, grade and certification, creating a physical asset whose value may be influenced both by its gold content and by its characteristics as a collectable coin.
For UK investors, certain British legal-tender gold coins can also offer valuable tax advantages.
A whisky cask is a very different type of tangible asset.
Rather than holding a finished product, the owner holds maturing Scotch whisky stored in an approved warehouse in Scotland.
Time is an important part of the proposition. As whisky matures, its age, character and availability change. However, age alone does not determine value. Distillery reputation, cask type, alcohol strength, volume, provenance, contractual rights and demand can all influence what a cask may ultimately be worth.
For that reason, successful cask ownership requires more than simply purchasing whisky and waiting.
We believe investors should understand exactly what they own, where it is held, the costs associated with ownership and the potential routes available when the time comes to sell or otherwise realise the asset.
Why Consider
Alternative Assets?
Gold and whisky should not be treated as interchangeable investments.
Gold is a globally recognised asset with established pricing and a broad international market.
Whisky casks are specialist assets. There is no central exchange or official market price for individual casks, and their value depends upon the characteristics of the whisky and the market available when the owner wishes to exit.
That distinction is important.
Some clients choose one asset because it fits a particular objective. Others choose to hold both, spreading their alternative-asset allocation across assets with very different underlying drivers.
Our approach starts with understanding what the client wants the asset to achieve rather than assuming the same strategy is suitable for everybody.
Direct
Ownership Matters
One of the attractions of tangible assets is knowing what you own.
With physical coins, that means identifiable individual coins rather than units in a gold fund.
With whisky, it means clearly documented ownership of an identifiable cask and the spirit contained within it.
Before an asset is acquired, clients should understand its specification, provenance, location where relevant, ownership documentation, ongoing costs and potential route to sale.
Transparency at the point of purchase matters just as much as the asset itself.
Selection
Rather Than Speculation
We do not believe alternative assets should be sold on headline return percentages or short-term forecasts.
Markets change.
Instead, our approach is based on selecting assets with understandable characteristics and considering their long-term potential alongside the risks of ownership.
For gold, that includes factors such as the underlying gold value, coin type, scarcity, grade and collector demand.
For whisky, it includes the distillery, spirit type, year of distillation, cask characteristics, maturation, provenance, warehouse arrangements and potential future market.
The objective is to make an informed acquisition, not simply follow a performance claim.
Tax-Efficient
Tangible Assets
Tax treatment can be another reason UK investors consider physical gold and whisky casks, although the rules differ significantly between the two.
Certain UK legal-tender gold coins, including Britannias and qualifying Sovereigns, are exempt from Capital Gains Tax for UK residents. Gold meeting the definition of investment gold can also qualify for VAT exemption.
Whisky has a different tax position and the circumstances of ownership and disposal need to be considered individually. Investors should obtain appropriate independent tax advice rather than treating tax treatment as guaranteed.
Tax rules can change and should never be the sole reason for making an investment.
A considered Approach
to Alternative Investing
Alternative assets are most useful when they have a clear purpose within a wider financial strategy.
That might be diversification, long-term tangible ownership, exposure to gold, participation in the Scotch whisky market or simply allocating a portion of wealth away from conventional financial assets.
Whatever the objective, understanding what you are buying comes first.
Steadman-Chase provides access to carefully selected physical gold coins and Scotch whisky casks together with the information needed to make an informed decision.
Discuss Your
Investment Objectives
If you are considering adding tangible assets to your portfolio, speak with Steadman-Chase about the options available.
We can explain how gold coin and whisky cask ownership works, the differences between the two markets and the practical considerations involved before you decide whether either is right for you.
10-15%
Typical Cask Returns
Average annual market growth
0%
Capital Gains Tax
Wasting asset, exempt from CGT
£6bn+
Annual Whisky Exports
Global demand still rising
5,000+
Years of Gold Value
A long-standing store of wealth
