Cigars as an investment, your thoughts.

Rhamlin

So I've been cruising another forum and I was shocked to see so many people selling cigars. It leads me to believe they are buying on the cheap from bid sites then reselling for a profit on the forums. And buying CC's then reselling. Don't get me wrong I ain't against making a buck but I never looked at cigars as an investment except in a case of need to raise money fast kinda thing. To me it's a luxury expense, I couldn't imagine selling off my pretty's unless I had to. I buy them to smoke or give out.

Gray4lines

Hmmm, I do think that buying cigars today is an investment because they will never be cheaper than they are right now and only get better with age. It's saving money with something that will pretty much hold value. But, this is a little than your question.

If anyone wants to spend all their time on bid sites, grabbing up deals to re-sell, then I guess they can. Just like someone going through yardsales or anywhere else to find crap to ebay. I would just caution, buyer beware and dont overpay.

Certainly B&M owners see them as an investment, and if I wanted to sell cigars, this is the route Id go. Do it for real, buy wholesale...

So, I buy to enjoy! And the only investment is buy now to age and save money later.

fla-gypsy

Investment? heck I am smoking them as fast as I can get them, more like an expense for me. I don't have a cigar collection, I intend to smoke them all.

blurr

Sure, maybe to make a few small bucks. I wouldn't do it, I buy for myself. And I think the people who do that at bid sites are just screwing the rest of us by grabbing up all the good deals and stock. But it doesn't bother me, I can still find a good deal when I know a certain box I will wait to see a good price on, just takes longer. I have a sizeable collection, but the only reason I keep so many cigars on hand is because a) they will NEVER go down in price and b) they are only getting better as they age (in my opinion YMMV), and c) I fully plan at some point in my life for tobacco to be completely outlawed or so ridiculously overpriced and taxed.

As far as bid sites, I guarantee there are people who buy up a lot of stock at low prices with the intent of reselling for a small profit. Of course you have to figure in shipping fees, at least 2x for your initial buy and then reselling and shipping to someone. I also guarantee a LOT of b&m owners buy stock from the bid sites and resell on their shelves at regular inflated b&m prices. You can look at the initials on the one site and see the same guy is buying boxes and boxes every day, and you know he is reselling.

kuzi16

cigars are not a real investment. if you purchase cigars as an investment, when the time comes to sell them you will be disappointed. the only investment you are making when you purchase cigars is an investment into your own enjoyment.

Gray4lines

kuzi16:

cigars are not a real investment. if you purchase cigars as an investment, when the time comes to sell them you will be disappointed. the only investment you are making when you purchase cigars is an investment into your own enjoyment.

I don't think you have to plan on selling cigars in the future in order for them to be an investment. Buying them to save money (given that you are going to buy cigars at some point) is just as much of an investment. You pay now for a gain later... and in this case, money saved is your gain.

Penny saved, penny earned

Blurr and I agree that premium tobacco will never be cheaper than it is today, and I don't believe this is heroic assumption. Our present tax and regulatory environment will ensure that prices keep going up up up, as has been true since at least the mid 90's (since the BLS started separately keeping track of tobacco prices other than cigarettes).

catfishbluezz

i buy cigars to smoke them. Sometimes, I sell some....to buy more...to smoke. There are some people that buy with every intention to flip...

beatnic

A good cigar is an investment into one's mental health!

xmacro

fla-gypsy:

Investment? heck I am smoking them as fast as I can get them, more like an expense for me. I don't have a cigar collection, I intend to smoke them all.

My feelings exactly; this includes the Thompson crap I still have sitting around from years ago when I first started on cigars - it will all be smoked!!

If you're looking to flip something cheaper than a house, ammunition is a more lucrative option, IMO

dennisking

I'd rather purchase expensive sticks and smoke them or give them away or something. It's not about the money. Just like an expensive bottle of Scotch. I prefer to share it.

bigharpoon

Sometimes I think about reselling cigars, especially when I'm at selling sites and I think 'Holy cow! They are asking a lot for that box just because it's aged. I should age cigars and resell them.' Then I realize they have been sitting on them for eight or ten years or more and all the space and control that involves. Yeah, they are getting some decent money for the box but you would have to do some serious volume for it to be considered a real investment. I'll stick to personal consumption.

blurr

Thats why I said small money. When you think of the time and space and everything involved in *properly* storing a box for 10 years just to make a profit of what 100 bucks if that? I would say its more likely what you are seeing is people that maybe had a box for a long time and realized they don't like them anymore, or people selling off old stash they don't think they will smoke. Remember we all get into the buying craze when we first entered this hobby. So they see nowadays that box is selling a lot more, so they make a small profit to buy ...you guessed it MORE CIGARS! Or it could be B&M owners moving their wares on online forums etc. Which I would also do if i owned a B&M, thats the only way to compete with online retailers without building your own website. So they're kinda smart if they are selling boxes from their B&M at OLH and the likes.

catfishbluezz

I will say this... Investing in Cohiba probably returns 3x in 8-10 years. That's a pretty smart investment lol.

Unthought_Known

blurr:

I would say its more likely what you are seeing is people that maybe had a box for a long time and realized they don't like them anymore, or people selling off old stash they don't think they will smoke. Remember we all get into the buying craze when we first entered this hobby.

I think this is the case for a lot of people. When I started out, my favorite brand was Punch. I loved the Villazon flavor profile, and thought Honduran cigars were terrific. Over time I got into Nicaraguan cigars, got into the Pepin profile, fell in love with the Padron family, etc. I have some Punch from 2008 that I planned on finishing within 1-2 years, but now I never reach for them. I also have some random cigars from samplers, or other cigars I tried and didn't think they were great shakes. Those are the types of cigars I give to my brother when he joins me for a smoke, but it'd take me a decade to get rid of them that way

There might be some people that buy every good deal they can find on auction sites, daily deals, etc, but I doubt they'd make much profit by re-selling on cigar forums because we pay attention to daily deals and we know what a good price is.

catfishbluezz

dennisking:

I'd rather purchase expensive sticks and smoke them or give them away or something. It's not about the money. Just like an expensive bottle of Scotch. I prefer to share it.

funny...I normally buy at least two of any htf or rare stick, as it sucks smoking them alone, and I much rather prefer enjoying them with great company.

Lee.mcglynn

I see growing my stash so in the end of my days I won't have to buy anymore lol so that's my investment guess a retirement present to myself lol

Rhamlin

Lee.mcglynn:

I see growing my stash so in the end of my days I won't have to buy anymore lol so that's my investment guess a retirement present to myself lol

my retirement plan to.

insomnniapb

I don't see them as an investment for quick resale. Nor do I plan on selling any of my cigars at any point... but, in an unstable economy having something tobacco couldn't hurt if it went to sh*t! After all it is one of the oldest traded comodities around! On a side note like I said before... I don't plan on selling any of my stash, but I will be interested to see what the box of behikes I picked up is worth in 10 years...

danielzreyes

Rhamlin:

Lee.mcglynn:

I see growing my stash so in the end of my days I won't have to buy anymore lol so that's my investment guess a retirement present to myself lol

my retirement plan to.

With my growing stash and my rate of smoking, I'll have enough left over for my children and my grand children.

Lee, I don't know about you, but to me buying cigars is like buying fishing lures. If I see something that really catches my eye I'll buy it just because. Although its rare do I ever bomb/share fishing lures though lol.

Lee.mcglynn

danielzreyes:

Rhamlin:

Lee.mcglynn:

I see growing my stash so in the end of my days I won't have to buy anymore lol so that's my investment guess a retirement present to myself lol

my retirement plan to.

With my growing stash and my rate of smoking, I'll have enough left over for my children and my grand children.

Lee, I don't know about you, but to me buying cigars is like buying fishing lures. If I see something that really catches my eye I'll buy it just because. Although its rare do I ever bomb/share fishing lures though lol.

lmao your completely correct!! This is why I stay away from sporting good stores!! I'm a gear junky and have had my eyes on a couple reels I want...but damn them prices!! But yeah bombing sticks and lures is always fun lol

danielzreyes

Lee.mcglynn:

danielzreyes:

Rhamlin:

Lee.mcglynn:

I see growing my stash so in the end of my days I won't have to buy anymore lol so that's my investment guess a retirement present to myself lol

my retirement plan to.

With my growing stash and my rate of smoking, I'll have enough left over for my children and my grand children.

Lee, I don't know about you, but to me buying cigars is like buying fishing lures. If I see something that really catches my eye I'll buy it just because. Although its rare do I ever bomb/share fishing lures though lol.

lmao your completely correct!! This is why I stay away from sporting good stores!! I'm a gear junky and have had my eyes on a couple reels I want...but damn them prices!! But yeah bombing sticks and lures is always fun lol

Pshhhhhh. Dude, Bass Pro Shop is 5 min away and my fav BnM is walking distance from BPS. Double edge sword.