Are wine and whiskey transacted in US dollars or British pounds? Will exchange rates affect my portfolio?

Most fine wine and all Scotch whisky is transacted in British pounds, while American whiskey is purchased in US dollars. Your native currency will be converted as necessary in order to invest.

This means that yes, foreign exchange rates can affect the value of your holdings if your home currency gains or loses value in relation to the pound (for wine and Scotch whisky) or US dollar (for American whiskey). 

For example, in 2022, the British pound weakened against the US dollar: from January to May, the value of £100 dropped from $140 to $126, or about -10% in comparison to the dollar.

If an American investor bought a bottle of fine wine for $140 at the beginning of the year, and that bottle went up 5% in value over the following five months, those gains would ultimately be offset by the weakened pound. 

To learn more about how foreign exchange rates impact your portfolio, read our blog post What the Weakening Pound Means for Your Wine Portfolio.