Cigars are not considered to be common investments because of the storage difficulties. Annually, the largest cigar manufacturers produce limited series, which are always accessible to ordinary customers. The price for the cigar box of the limited edition can start from 200 CHF. If the issue is successful, then in five to ten years this box can be resold with a profit.
Nowadays, there is a possibility to buy a series of 1990-2000 years. The price increases due to the decline of the stock and improvement of cigar properties over time. Very few investors take cigars as a long-term investment since this requires additional costs for equipping the storage room(with certain humidity, room temperature). The longer the cigar is stored, the higher its value, provided that it is properly stored.
In addition to the limited series, manufacturers produce limited edition cigars that are dedicated to the special events in the tobacco industry. For example, on the 500th anniversary of Columbus’ discovery of America, 1492 Humidor cigars were produced. The price of the package of such cigars is unknown. The last sale indicated an order of prices of $ 23,000 ($ 460 per cigar).
Selling cigars at an auction is a common thing. Two or three times per year, one of the world’s largest auction houses, Christie’s holds a special cigar auction. C.Gars Ltd holds regular auctions of rare cigars, which do not even have full boxes on display.
Investment in Wine
There are several funds where you can sell your shares through the quarter and “closed”, where the sale is possible only 5 years after the acquisition. Both can take a commission, when buying and when selling. Investment attractiveness is 20% per annum. A typical portfolio of a wine investment fund can have investments of up to $ 90 million, and include both futures and its own wine stores of 10-50 thousand bottles. The most popular wine for the investment is Bordeaux wine, But, for instance, crisis years are not so successful for investors, but in modern conditions even a return of 10% can be considered significant.
In conclusion, alternative investments carry high risks, but at the same time may be financially rewarding and increase in value over time. Additionally, they offer a broader variety of investment strategies and are advantageous for diversification of investors’ portfolios.
However, before investing in alternatives, the market needs to be studied and getting an expert opinion in the area is highly recommended, in order to have a correct estimate and make sure that tangible pieces and legal documents for potential investment are authentic and correct.
Very interesting!
Looking at the current situation and knowing that, the market for fine wines is dominated by France, with Bordeaux and Burgundy accounting respectively for close to 50% and 20% of the trading activities.
It’s clearly heading toward a downhill and will require major correction. So how Fast you think the wine market will recover? And will we be seeing a post 2009 all over again?
Thanks
I would say that it would take couple of years for the market to recover due to current trading activities. However, I believe that we would not see post 2009 again.
Of course, investing in luxury goods is not for everyone. And I agree with Catherine’s conclusion that investing in cigars, taking into account the difficulties in storing them, is not a very popular investment method, unlike wine, which over the years only acquires collection sophistication.
Thank you for your comment, Elena!
At present, alternative investments in cigars and wines are especially relevant. Great post!
Thank you, Vyacheslav! I am happy that you liked it.
An alternative investment in cigars or wine for me, for example, is hardly of interest. If I would invest in cigars and wine, it is only for my own pleasure.
I fully agree with you, also it is good to have already a knowledge of the industry in which you invest.
Great investment! Be carefull with storage and quality control though !
It is indeed a great investment!