Why Is Old Whisky So Expensive?

* This article originally appeared on the Huffington Post UK on 4/11/16. 

When details of the latest super premium Scotch single malt were released earlier this week, they seemed to cause quite a stir across social media platforms and the whisky drinking community. Comments such as “looks nice but way too expensive”, “outrageous pricing” and “what a rip-off” were vented, but were frankly predictable.

But do these comments have an element of correctness, or are they simply naïve and showing a lack of understanding about the economics of the whisky industry? Why are old whiskies priced as they are?

New release - Bowmore 54 years old

Earlier this week Bowmore, one of Scotland's oldest whisky distilleries, announced the release of a very special single malt - the Bowmore 54 years old.  This exceptionally rare whisky was distilled in 1957 and is the oldest bottling of Bowmore ever released.  Not only that, but it is the oldest whisky to ever be released by any distillery on the famous whisky producing island of Islay.  This 1957 vintage is also set to be one of the most expensive single malts ever, and one of the most beautifully packaged. Intrigued? ...