Study: Investing In LEGO & Other Collectibles Better Than Investing In Gold

A recent study by the Higher School of Economics (HSE) University in Russia has found that the market for secondhand LEGO and other ‘unusual goods whose purchase might seem less serious’ is more lucrative than investing in gold, art and wine.

The study, titled ‘LEGO: The Toy of Smart Investors’ was made by the HSE University economists and was published in the Research in International Business and Finance Journal recently. It found that the market for secondhand LEGO rises in value by 11% annually, a faster and better rate of return than gold, stocks, bonds, stamps and even wine.

Furthermore, the researchers also found that there could be lucrative gains to be made from investing on collectible toys such as LEGO sets, Barbie dolls, superhero mini figures or model cars and trains. Victoria Borynskaya, an assosiate professor at the Faculty of Economic Sciences at HSE commented,

“We are used to thinking that people buy such items as jewellery, antiques or artworks as an investment… However, there are other options, such as collectible toys.”

“Tens of thousands of deals are made on the secondary Lego market. Even taking into account the small prices of most sets, this is a huge market that is not well known by traditional investors.”

The study looked at the prices of 2,322 LEGO sets from 1987 until 2015 and found that the limited production run, collector special editions and scarcity on the secondhand market have made the prices of collectibles to rise up over the years. Do note that only the sales of new unopened sets were selected.

Particularly, the LEGO sets produced 20-30 years ago make fans nostalgic and their prices have gone through the roof. However, despite the high profitability of LEGO sets on the secondary market in general, not all sets are equally successful. One must study the LEGO market or be a real fan to sort out the market nuances and see the investment potential in a particular set.

What do you guys think of the revelation in the study? Would you be ditching the traditional stocks and bonds investment for LEGO? Share your thoughts with us in the comments.

 

Also read: LEGO Expects To Sell Toy Bricks Made Out Of Recycled Plastic Bottles Soon!