THE price of rare malt whiskies has soared to record levels as investors seek tangible alternatives to volatile stock and money markets.

Dramatic fluctuations triggered by the credit crunch have seen rich speculators move their money into items that hold their value including precious metals, works of art and vintage whiskies.

*Single malts from distilleries that have since closed are commanding hefty premiums, with some doubling in value in a matter of weeks. Brokers predict that the first £100,000 bottle of whisky will be sold in the new year.

The latest figures from the World Whisky Index, an internet-based trading platform for whisky investors, show that prices have risen by an average of a third over the past month.

A bottle of Glenfarclas 1955, costing £2,000 last year, is now worth £6,000. Macallan 1947 has doubled in value to £3,000 over the same period. A 30-year-old bottle of Bowmore, bought for £165, sold for £390 just a month later, a record 137% increase.

It is estimated that £20m a year is now being invested in the rare single malt market in the UK along.

Sukhinder Singh, director of the Whisky Exchange, the UK’s biggest whisky broker, said that, contrary to expectations, the economic downturn had fuelled a rise in demand for the most precious bottles.

“We are busier than ever despite all the doom and gloom. The demand for top-end whisky is very strong,” said Singh.

“Whiskies are becoming more rare and therefore valuable because 80% of the products we sell are actually being drunk.

“Whisky is a good investment because so many people are crazy about it and it never goes off. It’s safer than stocks and shares in the long term.”

The current record price for a bottle of single malt whisky is £40,000 for a Dalmore 1942 but Singh expects that to be broken next year, when he intends to put a £100,000 bottle up for sale.

Michel Kappen, of the Dutch firm The Whisky Talker, which runs the World Whisky Index, said £1.5m had been invested in the spirit stock exchange since it was set up a year ago.

“People aren’t interested in buying stocks and shares anymore because the market is not strong,” he said.

“We predict that people who buy a bottle of rare single malt can make an average profit of 50% in three years’ time.”

Jacob-Jan Esmeijer, 36, a Dutch marketing executive, withdrew his money from the stock market and has invested £3,500 in bottles of rare malt whisky this year.

“It is a very uncertain time in the stock markets. I have a passion for whisky and I felt it was a safer long-term investment,” he said. “I have a portfolio of around 10 bottles and they are performing very well.”

Scottish distilleries said they had seen strong demand among investors wanting to buy casks, despite the fact that about 2% of their investment will evaporate every year.

“There’s been a lot more interest in barrels since people realised they can’t put their money in the banks, stocks and shares or houses,” said Mark Reynier, managing director of the Bruichladdich distillery on Islay.

“People are thinking, ‘Well if I put it in whisky at least I can drink the stuff at the end’, which you can’t do with a share certificate. Good quality single malt whisky does appreciate on an annual basis.”

Despite the burgeoning market, the Scotch Whisky Association does not offer advice but warns that “investment for resale is expensive and highly speculative and should not be entered into lightly.”