Fiscal Responsibility

[CAJUNBLAZE]

Good advice for newbies such as myself, it is very easy to get caught in the specials offered!

Rich

[Cabaiguan Juan]

Amen. My budget is ductated by the pay check i get at my part time gig. The Day job is for the Shorter Half and I's living expenses and whatnot.

[craig]

Y'know, I agree with this for the most part - credit card debt is BAD - but ... when times are bad, the smart money buys. The key assumption is that you MUST have money, of course.

Besides the general economy, there are two other factors:

1) SCHIP is coming. If we assume that it is 40 cents a cigar, then that's $10 on a box of 25. I don't know if there will be a floor tax (tax levied on existing stocks), but if you smoke $2 cigars, that's quite a hit.

2) Cuba has been hit HARD by the hurricanes. The tobacco wasn't planted, but many curing barns have been lost. This means prices will naturally rise in a couple of years solely due to the upcoming lost crop. If that is further combined with the suspension of the embargo, then CC's will go through the roof. Unfortunately, it is only boxes that remain sealed that will be worth sitting on for investment purposes.

YMMV

[drew_goring]

Y'know, I agree with this for the most part - credit card debt is BAD - but ... when times are bad, the smart money buys. The key assumption is that you MUST have money, of course.

Besides the general economy, there are two other factors:

1) SCHIP is coming. If we assume that it is 40 cents a cigar, then that's $10 on a box of 25. I don't know if there will be a floor tax (tax levied on existing stocks), but if you smoke $2 cigars, that's quite a hit.

2) Cuba has been hit HARD by the hurricanes. The tobacco wasn't planted, but many curing barns have been lost. This means prices will naturally rise in a couple of years solely due to the upcoming lost crop. If that is further combined with the suspension of the embargo, then CC's will go through the roof. Unfortunately, it is only boxes that remain sealed that will be worth sitting on for investment purposes.

YMMV

Why would a opened box not command the same price as a sealed one? Personally (and I am not a "collector") I would rather purchase open boxes if they are aged so they can be inspected and such.

Great posts Mark. Definitely something for all of us to think about.

[craig]

Why would a opened box not command the same price as a sealed one? Personally (and I am not a "collector") I would rather purchase open boxes if they are aged so they can be inspected and such.

Great posts Mark. Definitely something for all of us to think about.

+1 on the posts, I forgot to put that in my original response (was running out to a meeting).

As for open boxes, the answer is fakery. Since the Cubans went to standardized sizing across brands, it has become extremely easy to do upmarket fakes. If somebody puts Cohiba bands on RyJ's, and puts the result in a Cohiba box, then it will be awfully hard to see that fakery. The money isn't as good as glass-top Cohiba's, but it may well be in a couple of years .... there's a reason why B&M's here will not give out un-mutilated empty dress boxes unless they know you.

When cigars are auctioned, the auction house is essentially guaranteeing authenticity. Sure, if the boxes came from an estate, the provenance can be demonstrated, but there isn't much use in buying for profit if the profit goes to your estate! OTOH, if you're buying extra boxes in anticipation of a windfall profit in a couple of years due to the hurricanes this year and a potentialy lifting of the embargo, then a sealed box is going to sell faster and for more than an unsealed one IMHO.

I have been debating extending myself a bit because 25% per year potential profit (my guess) is appealing, but I have pretty much talked myself out of it as I'm only interested in "collecting" for the purpose of destroying (smoking) the collection, so the profit is irrelevant. I crack open every box the moment it arrives. If the cigars are in a dress box, then I re-package the cigars in jars or old cabs right away, so the only record of the age of a cigar is what I write on the jar label - hardly a means of authentication

[denver24]

I second everyones posts. In the current economic climate, cash and frugalness are the names of the game until stability and general job security return. It's a bummer, but my cigar budget is almost non-existent and will remain that way until prosperity returns. Damn economy!

[nhcigarfan]

Coming from a vendor folks with this problem should listen. He can only loose from his advice.

Mark is a stand up guy.