Investing in Premium Cigars

Investing in cigars can be a specialised, profitable, and unique alternative investment, but it comes with its own set of considerations. Here we have listed some important considerations to take into account when contemplating investing in cigars:

^{One Box of Cohiba Siglo V1}

^{Sold for £1,700}

Brand Reputation

Just like with any luxury product, the reputation of the brand matters. Established and well-known cigar marques often hold more value in the market. Look for companies with a history of producing high quality cigars such as Cohiba, Montecristo, Romeo Y Julieta, Davidoff, and Dunhill.

Limited Edition

Rare releases and Limited Editions can become highly sought after by collectors. These cigars are often produced in restricted batches, using superior leaves, and matured for longer making them more valuable over time.

Provenance

The origin of the cigars can impact value. Cigars especially from Cuba take top rank, however, Dominican, Nicaraguan and Honduran are also worthy of attention. The factory of production, type of tobacco used, and the craftmanship all also contribute to the overall value.

Condition and Storage

The condition of the cigars is paramount to maintain freshness and avoid drying out. Cigars need to be stored in proper conditions with controlled humidity (65%-70%) and temperature (65°-70°F). Well-maintained cigars in excellent condition are more likely to retain or increase in value.

^{One Box of Cohiba Behike 56}

^{Sold for £2,600} 

Packaging and Presentation 

Limited edition or special release cigars often come in unique packaging/banding. The design and presentation of the packaging can add to the collectible value of the cigars.

Age

Like fine wine, some cigars improve with age. Vintage cigars, if stored correctly can become more valuable over time. The ageing process can enhance the flavours and make them more appealing to collectors.

Reputable Retailers

To ensure authenticity and quality, always buy from reputable and authorised dealers, or from a reputable auction house with sound provenance.

^{One Jar H Upmann Magnum 56}

^{Sold for £1,300} 

Market Trends

Stay informed about market trends and preferences. Certain cigars may become more popular due to changes in taste, marketing, or cultural trends. Big format vitolas are currently more popular and as such command higher premiums.

Legalities

Be aware of the legal implications of cigar trading and investment, especially the complexities around import/export regulations, as well as laws related to the sale of tobacco.

Diversification

As with any investment, diversification is key. Consider building a diversified portfolio of cigars to spread risk. This can include different brands, regions, and types of cigars.

Remember that investing in cigars is a unique and relatively illiquid market. It requires a deep understanding of the industry, a passion for cigars, and careful consideration of the factors above.

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