RARE Scotch whisky has topped the luxury investment charts by delivering a 40 per cent annual return, well ahead of the 12% achieved by the second-placed coins category, research has revealed.

Property consultancy Knight Frank’s 2019 Wealth Report, published today, highlights the returns from various classes of luxury assets over the 12 months to the fourth quarter of last year.

It shows the Knight Frank Rare Whisky 100 index, compiled by Rare Whisky 101, was the standout performer over this period in the property consultancy’s Luxury Investment Index, which as a whole delivered a 9% return.

This is the first time the whisky index has been included. It comprises 100 bottles of the world’s “most-desirable rare Scotch whisky”. The index tracks actual UK auction prices for these bottles, and shows these values have increased by 582% overall during the past decade.

Coins have achieved price growth of 193% over the last decade. Wine and art both showed price growth of 9% over the year to the fourth quarter of 2018 and delivered respective returns of 147% and 158% during the last decade. Classic cars have delivered a 258% return over the last decade but achieved a return of only 2% in the 12 months to the fourth quarter of last year.

Knight Frank said the most significant sale of 2018 had been a unique bottle of Macallan 1926, hand-painted by Irish artist Michael Dillon, which sold for a record £1.2m in November.

Wealth Report editor Andrew Shirley said:: “The stunning price growth of rare single malt whiskies shows that the appetite for new ‘alternative’ asset classes remains strong among high-net-worth investors. However, we are seeing growth soften for some of the other asset classes…like classic cars that had been performing exceptionally strongly.”

Knight Frank highlighted the strength of the Asian market for Scotch.

It declared: “This incredible rise in values has been partially driven by the Asian market, as sales of Scotch whisky to India, China and Singapore rose by 44%, 35% and 24% respectively [year-on-year] in the first half of 2018 according to the Scotch Whisky Association, with single malts totalling almost 30% of total exports.”

Andy Simpson, co-founder of Rare Whisky 101, said: “While rare whisky remains a somewhat fledgling asset class compared to some other passion investments, the market for rare and vintage bottles has witnessed extraordinary growth over the past ten years, both in terms of the volume of whisky being traded and the value of that whisky.

“The key to rare whisky’s sustained growth as an asset class, is the passion buyers worldwide share for investing, collecting, and occasionally drinking, some of the best and rarest Scotch whisky ever made.”

Knight Frank highlighted record sales for a number of other asset classes in the luxury investment index last year.

It noted that, in the classic car market, a 1962 Ferrari 250 GTO had sold for $48m. Knight Frank observed this was the most expensive car sold at auction.

Knight Frank added that the Marie Antoinette pearl pendant had been sold by auctioneer Sotheby’s for $36m. It added that this was the most expensive piece of pearl jewellery sold at auction.