The market for collectible cigars is young, and largely supported by those investing in wine and similar commodities.
“This is a promising time for those looking to invest in cigars, as the amount of interest is likely to increase in the coming years,” says Joe Taylor of Paul Fraser Collectibles.
Often, clients start their collections with sought-after Cuban brands, he says. “Stay with the brands you recognize; those with established reputations for quality, such as Cuban Davidoff, Dunhill and Cohiba,” he says. “These brands, if stored properly and unused, have a good chance of rising in value due to their consumable nature.”
The U.S. made Cuban cigar imports illegal in 1962. Pre-embargo cigars, however, can be bought and sold in the U.S. They’re rare, making them a sound investment in that market.
And the best cigars increase in value for two reasons—they grow rarer as collectors smoke their specimens and taste improves over time, says Colin Ganley, director of the Austrian-based Cigar Journal.
“Due to regular price increases of new production, increases in taxes and a growing interest in cigars, the value of Cuban cigars continues to rise,” says Ganley. “The highest performing cigars are limited editions of various types.”
They include Montecristos, Cohibas, Romeo y Julietas and Partagas.
“Good investable cigars start as low as $200 per box,” says Ganley. “Those with higher returns start at prices from $500 to $2,000, [and some of] these are special production cigars.”
CIGARS: THE PERFECT BUY-AND-HOLD INVESTMENT>