Lego, founded in 1932, is one of the largest toy manufacturers in the world. Lego investing has become increasingly popular in recent years. Analysts point out that investing in Lego over the past 15 years has yielded higher returns than investing in stocks, gold, or real estate, with an annual return of 12%. Some recently released Lego sets already have a sale price 36% higher than the original price on eBay. Lego is no longer just a children’s toy. It has become a coveted collectible among adult fans and a rising star in the investment world, thanks to its collectibility, cultural relevance, and supply scarcity.
The investment value of Lego comes from its collectibility and rising prices
Many Lego sets appreciate greatly in value after they are retired. For example, the Lego Modular Buildings series has yielded very high returns for investors. Cafe Corner, released in 2007, had a 1470% total return and 25.77% annualized return. Similarly, 2008’s Green Grocer retired set has appreciated 873%, translating to 22.96% annualized return. Some experts point out that sets tied to popular entertainment franchises tend to have the highest potential. Investors also favor sets depicting famous landmarks.
Ways to invest in Lego
If interested in a Lego set, buy two copies – one to build and play, another to keep sealed for collecting.Pay attention to retirement dates, as set values tend to appreciate most post-retirement.Keep boxes sealed and in pristine condition.High-end collectors care greatly about box condition. When buying for investment, wait for discounts of 20-50% off original prices. Focus on sets nearing the end of production.
Lego secondary market
Lego sets can be resold on sites like eBay, Amazon, and specialty marketplaces. There is huge demand for retired Lego sets. Restore value depends greatly on condition – used loose bricks are worth very little compared to sealed boxes. Resell 1-3 years post-retirement to balance returns and sellability.
In conclusion, Lego investing has generated sizeable returns for many fans over the years. With shrewd purchase decisions, proper storage, and strategic selling timing, Lego sets offer an alternative investment option with high upside.