Whisky vs Other Asset Classes: 8-Year Holding Performance
When considering whisky as an investment, understanding historical performance is essential. We've carried out a detailed analysis to show how whisky has performed over time compared to traditional asset classes, offering a clear view of its potential as part of a diversified portfolio.
What the Data Shows
This analysis looks at the returns achieved from investing in new-make whisky (0 years old) and holding it for 8 years before sale. Each data point on the graph represents the year of sale, meaning the whisky was purchased 8 years prior. For example, the return of 9.15% recorded in 2020 reflects a purchase made in 2012. That same year, the return of Gold was 2.29%, Shares 4.46%, UK Housing 3.16%, London Housing 4.36% and Cash -1%. See the charts below for more data.
Returns are shown after adjusting for inflation (CPI) to reflect real-world buying power, and outlined as a Compound Annual Growth Rate (CAGR) — a standard metric used to assess the consistent annual return of an investment over time.
Note: Percentages have been rounded to the nearest decimal place.
Compared Asset Classes
To put whisky’s performance into context, it has been benchmarked against several traditional and alternative asset classes over the same 8-year holding periods:
- London House Prices
- UK National House Prices
- Cash Savings
- UK Equities (Shares)
- Gold
- Whisky (New-Make to Year 8)
This comparison highlights how whisky performs not just in isolation, but in relation to other asset classes investors typically consider.
Key Insights
- Stable and competitive returns: Whisky has demonstrated competitive CAGR returns in many periods, particularly during years of broader market volatility.
- Inflation protection: Whisky has historically offered resilience against inflationary pressures.
- Low correlation: As an alternative asset, whisky’s performance tends to move independently of equities or real estate, supporting portfolio diversification.
Why 0–8 Years?
The 0–8 year window reflects a key opportunity in whisky values. At 0 years, spirit is typically acquired at its lowest price point. Over the following eight years, as it matures and moves closer to being suitable for blending or bottling, its value tends to rise steadily, assuming proper cask management and demand from both consumers and the trade.
By focusing on this timeframe, we capture the core value accrual phase of whisky maturation, where investors can see potential returns. Scotch whisky typically appreciates in value even faster as it ages. However, the level of demand is smaller and therefore less consistent.
It is also worth noting that there hasn't been an 8-year period since 1987 where investing in Scotch whisky would have made a loss, something which none of the other asset classes can claim.
Best Performing Assets UK 1984 – 2024
Each year on the graph represents the year of sale, meaning the whisky was purchased 8 years prior.
Note: Percentages have been rounded to the nearest decimal place.
Data Source: BullionVault.com, UK Annual asset class performance comparison, 1974-2023. Available at: BullionVault.
What This Means for Investors
This analysis is designed to help you understand whisky not as a novelty, but as a structured, long-term asset. While it may not replace traditional investments, it has a unique role to play in balancing a portfolio, particularly for those seeking inflation protection alternatives.
We encourage investors to consider how whisky, as a tangible and integrated asset, may align with their broader investment goals, especially when managed through a platform like WhiskyInvestDirect, which offers access to carefully selected stocks focused on whiskies destined for blends and diversification across age, distillery, and region.
Read more about: Our role in the Scotch whisky industry