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Smoking profits from Cuban cigars
By Toby Walne
For some, there's nothing better than sitting back and relaxing with a Cuban cigar. But, by puffing on the best, you could be witnessing a shrewd investment go up in smoke.
Mitchell Orchant, 42, started smoking cigars at 15 and loved them so much he started investing in them before setting up his own C Gars mail-order store in West Hampstead, London.
He explains: "Many of our clients buy two boxes of cigars when they are released - one to smoke and the other to lay down and sell later to pay for their habit. If you are lucky, the prices will double in a year to pay for your pleasure, but typically you might expect to wait five years for a 50% growth in value."
Mitchell says the only cigars worth investing in come from Cuba, because this is the only place in the world with the ideal combination of sun, soil and skill.
Soil around the Pinar Del Rio region is rich in minerals that are perfect for tobacco growing, while centuries of know-how have transformed the trade into an art form.
Of course, it is a myth that top cigars are rolled on virgins' thighs, but the entire process is done by hand without the use of machines - a skill requiring years of training and expertise.
Which brands to buy
The most attractive cigar investments tend to be limited editions, from classic Cuban labels such as Partagas, Ramon Allones and Bolivar.
Mitchell says that other big names, such as Romeo Y Julieta and the best-selling Montecristo, also offer a great place for novice cigar smokers to start.
The cigars can be picked up for a tenner a puff, but investors need to purchase in boxes of 25 or 50 and store them in humidors to keep their Havana appeal.
However, some of the best recent bets - and possibly greatest smokes - have been the labels of Davidoff and Dunhill, who quit the Cuban market in 1992.
Mitchell says: "The prices of these cigars have gone through the roof. You could purchase a box for £500 in 1992 that is now worth £5,000 and still climbing."
But he says it's no use investing in the future if you cannot appreciate their pleasures now and again and one of his favourites is a £160 Davidoff Dom Perignon.
Cigar size matters
The most sought-after cigar of the moment for many, however, is the 1492 Humidor, named after the year Christopher Columbus discovered Cuba. With a limited edition of just 502 boxes of 50 specially banded cigars, they could be picked up for £800 when released in 1992, but today you would have to pay at least £12,500.
Mitchell admits that size really does matter for the cigar connoisseur and that, strange as it may seem, you should also consider your own dimensions. He says: "Believe it or not, you find that tall people go for longer cigar while shorter, fatter cigars often suit a shorter size."
The biggest size is the Gran Corona, which is nine and a quarter inches long with a cigar ring gauge of 47 - meaning it is just under an inch thick. Others include the highly collectible, short but thick Robusto, while if you want something a little less flashy, consider a Petit Corona.
There is a huge variety of complex flavours, from spicy to rich and earthy, which you can only appreciate by having a puff yourself. With a smoking ban in public places from 1 July, one of the few places left to enjoy a sample is a specialist tobacconist's shop.
Mitchell believes a serious investor should first enjoy a cigar relaxing with a drink of champagne, malt or cognac.
Who said investing isn't fun?
Guide to cigar investing
Don't bother unless you are willing to enjoy the investment as well. Visit a specialist tobacconist to have a puff and discover what you like.
Go for top-branded limited editions if you want to turn a pleasure into a money-making pursuit. Buy in boxes of 25 or cabinets of 50.
Look after your cigars. They can keep for up to 50 years and, like wines, age well with time. However, you must store them in a humidor that replicates Cuban weather.
Seek expert advice. Specialist traders can help, while websites such as cigars-review.org and cgarsltd.co.uk offer forums where experiences and advice can be shared.
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