By Rob Montes for The Q Wealth Report
Cuba is something of an exception in the modern world – a country that many people prefer to pass over because of the political risk factor. However, risk often equals rewards. If you know how to manage the risk adequately, the rewards can be great. Many international companies from Canada, Spain, France and elsewhere have quietly been making a lot of money in Cuba over recent years.
The island, of course, is off-limits for Americans in most cases, but that hasn’t stopped many American businesses from signing contracts buying future rights once the embargo is lifted. And, one day, the embargo must go.
Hard currency earnings of Cuba almost doubled in the three years 2004 through 2007, from US$ 5.5 billion to US$ 10.8 billion. Some of this is accounted for by export of medical services, which is mainly the ambit of the Cuban government. However, the worldwide commodities boom has also had a significant effect. For example:
Cuba is a major producer of nickel which more than tripled in price during those years.
How can you participate in this Cuban boom? The easiest way is via stocks and bonds – either on public markets by investing in companies doing business in Cuba (Sherritt in Canada and Sol Melia in Spain come to mind). It is also possible, for non-US persons, via private placements which can be arranged through reputable international banks.
Note: Further information and contacts for Cuban investment opportunities will be coming up in the next few issues of The Q Wealth Report. If you don’t already have your subscription, we recommend you sign up now!