Are LEGOs a Good Investment?
Discover the surprising investment potential of LEGOs! Uncover how these childhood toys are outperforming traditional assets like gold.
If you grew up collecting LEGOs, then you could potentially be sitting on a gold mine. In fact, your LEGOs could be more valuable than gold. A study by Russian researchers found that LEGO sets outperformed stocks, bonds, and even gold! You’re probably thinking… HA? Really AH? How could these plastic bricks be worth more than precious metals?!
Why are LEGOs so valuable?
The LEGO market is booming, with some even considering LEGO sets as their own asset class. Many people invest in jewelry, antiques, and artwork, but investors can also make thousands of dollars in the secondary LEGO market. From 1987 to 2015, the market price of unopened LEGO sets has grown in value by around 11% annually, outperforming gold and many traditional investments. LEGO sets have carved out a niche in the investment world, proving that these colorful bricks are more than just toys.
Much like any other investment, the asset value depends on how people perceive the asset. For example, if a vintage car from a bygone era is meticulously restored, it might appeal to collectors who appreciate its historical significance or unique design. Similarly, the value of a LEGO set is driven by a combination of rarity and childhood nostalgia.
Unopened sets from discontinued themes or those with limited production runs tend to be more valuable due to their scarcity. This limited supply, coupled with high demand from LEGO enthusiasts who grew up with these sets, drives up the price. These sets trigger fond memories and a desire to own a piece of their childhood, further increasing their collectability and value.The LEGO brand has been selling toys since the 1960s, and has built a massive fanbase over the years. And decades later, they’ve found a lot of fans in their many buyers who are in their 30s and 40s, seeking a nostalgic connection to their childhood and are willing to pay a lot more for them. For instance, a 35-year-old service engineer from New Jersey initially bought his favourite Lego kit simply to reconnect with his childhood. But twenty years later, he discovered the kit was going for more than it’s 1996 retail price of only $85—to a whopping $2405! He quickly jumped into what proved to be a lucrative market of buying and selling Lego sets online and ended up making $500K in just two years.
What to Know Before Investing in LEGOs
Imagine buying LEGOs today and reselling them at a marked-up value later. But before you run out to buy the first LEGO set you see, there are a few things you need to keep in mind.
Production and Availability
Not all LEGO sets are created equal in terms of investment value. Sets with limited production runs or those discontinued years ago tend to hold greater value. This includes exclusive convention sets, special editions with unique minifigures, or sets tied to short-lived themes. The limited supply, coupled with collector demand, drives up prices.
Nostalgia Factor
Sets that bring back childhood memories are often more valuable. Themes popular during your formative years or those linked to iconic movies, books, or historical events can be more desirable due to the sentimental value they evoke.
Set Condition
Similar to collectible items, the condition of a LEGO set significantly impacts its value. Ideally, for maximum investment potential, you’ll want a sealed, unopened box in mint condition. Used or opened sets, even if complete, will generally fetch lower prices.
Market Research is Essential
You need to be really passionate about LEGOs and do thorough research on online marketplaces and collector forums to understand current market trends and identify the value of sets with investment potential.
The Bottom Line
In conclusion, certain LEGO sets have proven to be valuable investments, sometimes outperforming traditional assets like gold. However, as with any investment, it’s important to consider factors that could impact their value, such as market trends and the condition of the set. If you’re an avid LEGO fan or collector, you could turn your childhood hobby into a lucrative investment opportunity. But always remember to do your own research (DYOR) and understand that every investment carries its own risks.
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