AFTER the ostrich money making scam comes another opportunity for the gullible and greedy. Potential investors are being offered the possibility of "spectacular appreciation" rates of up to 18 per cent a year if they put some money (figuratively) into casks of scotch whisky. A number of companies outside the mainstream industry have launched a widespread advertising campaign, trumpeting the investment potential of the wee dram. Casks containing several hundred bottles of malt whisky are being offered for sale at up to £2,500 a cask. Stored in bonded warehouses they would be sold in ten years' time.

The Scotch Whisky Association warns interested parties not to bury their heads in the sand on this one. Investors have no control over the manner in which the alcohol is stored or the quality of the casks. Duty is payable if taken out of bond and the value of product, like any other commodity, is subject to the vagaries of supply and demand. Additionally the product loses around 2 per cent a year due to natural evaporation. The association cautions would be investors to "look behind the claims ", and warns that ignorance of the business and the expectation of high returns "are a lethal combination". Forewarned is forearmed.