Investing in Lego sets has become increasingly popular in recent years, as collectors and investors recognize the potential for high returns. In this article, we’ll explore the reasons why investing in Lego sets can be a smart financial move, the key factors to consider when investing in Lego sets, and the potential returns you can expect. We’ll also provide calculations and references to help you make informed investment decisions.
Why Invest in Lego Sets?
Lego sets are not just toys; they are also valuable collectibles that can appreciate in value over time. The main reasons why investing in Lego sets can be a smart financial move include:
- High demand: Lego sets are popular with collectors, enthusiasts, and children, which means there is a high demand for rare and exclusive sets.
- Limited supply: Lego sets are produced in limited quantities, which makes them rare and valuable.
- Nostalgia factor: Many adults who grew up playing with Lego sets are willing to pay a premium for rare and exclusive sets that remind them of their childhood.
- Investment diversification: Investing in Lego sets can be a way to diversify your investment portfolio and reduce your overall risk.
Key Factors to Consider
When investing in Lego sets, there are several key factors to consider:
- Rarity: Rare and exclusive sets are more likely to appreciate in value over time. Look for sets that were produced in limited quantities, were exclusive to a certain region or store, or were discontinued shortly after their release.
- Condition: The condition of the set is also important. Sets that are unopened, in their original packaging, and in excellent condition are worth more than sets that have been opened or damaged.
- Age: Older sets that are no longer in production are more likely to appreciate in value over time, especially if they are in excellent condition and are still in their original packaging.
- Brand recognition: Sets that are tied to popular franchises or brands, such as Star Wars, Harry Potter, or Marvel, are more likely to appreciate in value due to their wider appeal.
Potential Returns
The potential returns from investing in Lego sets can vary widely depending on the set, condition, and demand. However, here are some examples of the returns you can expect:
- The Lego Group reported that the average annual return on Lego sets from 1987 to 2015 was 12%, which outperformed gold, stocks, and bonds.
- The value of the Lego Star Wars Ultimate Collector’s Millennium Falcon set, which originally retailed for $500 in 2007, has appreciated significantly over the years and is now worth over $10,000 in unopened, excellent condition.
- The Lego Cafe Corner set, which was released in 2007 for $139.99, is now worth over $3,000 in unopened, excellent condition.
Calculations
To illustrate the potential returns from investing in Lego sets, let’s look at an example. Suppose you invest $5,000 in the Lego Star Wars UCS Millennium Falcon set in 2007, when it was originally released for $500. If you hold onto the set in unopened, excellent condition for 14 years, its value would appreciate to over $10,000, which represents a return on investment of over 100%.
References
- Forbes. (2021). Why Lego Sets Are A Better Investment Than Gold. Retrieved from https://www.forbes.com/sites/steveolenski/2021/03/16/why-lego-sets-are-a-better-investment-than-gold/
- The Balance. (2021). Investing in Lego Sets: The Basics. Retrieved from https://www.thebalance.com/investing-in-lego-sets-4164344
- BrickPicker. (2021). The Top 100 Most Valuable Lego