Great answers! Though most people may jump to the thought of using a cedar cigar box when I say cedar, I want to avoid confusion. I don't know if cigars can impart their own smell over their time in storage in their cedar box.
No, I am referring to cedar dressers, large chests, or like Daria mentioned, a cedar closet.
In professional cabinetry, you shouldn't have oils that ooze and discolor your stored goods, though, I agree that the natural oils in the wood do cause that natural odor and I am not sure if it is permanent. I wonder if lining say a cedar drawer with newspaper would help prevent a permanent cedar smell.
Putting lacquer would definitely trap in those oils that create the smell, but it would also prevent it acting as a natural deterrent against bugs (silverfish, book lice, etc.) and mold.
Now, it could be the desirability of the item, but the story to which I am referring is that of the Action Comics #1 (first Superman) that was found in a cedar chest in the high mountains of West Virginia (sounds majestic, ehh?) somewhat recently (
http://www.theguardian.com/books/201...ord-3m-dollars). I think the rarity of the item may drive buyers to ignore a cedar smell or even that cedar storage gives their purchase more cachet than something found in a dusy garage in Atco, NJ.