In investments, we often consider stocks, real estate, and precious metals as the traditional avenues to grow wealth.
But what if I told you that one of the most unexpected items can also be a valuable investment?
That’s right – we’re talking about LEGO bricks.
LEGO, those colourful plastic building blocks that have been a staple of childhoods worldwide, are gaining popularity as an alternative investment.
In this article, we’ll delve into the fascinating world of LEGO investments and explore whether they are a good investment option.
The LEGO Phenomenon
Before we dive into the investment potential of LEGO sets, it’s crucial to understand why these iconic toys have such a dedicated following and lasting appeal.
The History of LEGO
LEGO, a Danish company, was founded in 1932 by Ole Kirk Christiansen. The name “LEGO” is derived from the Danish phrase “leg godt,” which means “play well.”
The company initially produced wooden toys but transitioned to plastic interlocking bricks in the 1940s. The modern LEGO brick, as we know it today, was patented in 1958.
Since then, LEGO has spread over the world and captured the minds of both kids and adults.
The Power of Creativity
What sets LEGO apart from other toys is its limitless potential for creativity. The simple yet versatile design of LEGO bricks allows individuals to build anything they can imagine.
This inherent creativity has led to the creation of intricate, elaborate structures and even functional machines by skilled LEGO enthusiasts.
A Worldwide Community
LEGO has a passionate global fan base. Adult Fans of LEGO (AFOLs) gather at conventions and online forums to share their creations, discuss building techniques, and trade LEGO sets. This thriving community has played a significant role in driving the popularity and value of LEGO as a collectable item.
The Investment Appeal of LEGO
Now that we’ve explored why LEGO is so beloved let’s shift our focus to why LEGO sets are gaining traction as an investment option.
Rarity and Exclusivity
LEGO releases are set for various themes, including popular franchises like Star Wars, Harry Potter, and Marvel.
Some of these sets are limited edition or exclusive, making them highly sought after by collectors. Similar to rare collectable objects, these sets may increase in value over time due to their limited supply.
Limited Production Runs
LEGO often retires sets after a certain period, so they are no longer available for purchase from the official LEGO store.
This limited production run can make retired sets more valuable in the secondary market as collectors compete to own a piece of LEGO history.
Licensing Agreements
LEGO has established licensing agreements with major entertainment companies, allowing them to create sets based on popular movies, TV shows, and video games.
These licensed sets can significantly appreciate value if the associated franchise maintains or increases its popularity.
Growing Popularity
LEGO’s popularity continues to soar, with new generations of children and adults discovering the joy of building with LEGO bricks.
This growing demand for LEGO sets can contribute to their value as a collectable investment.
The LEGO Investment Market
Now that we’ve established why LEGO sets can be attractive as investments let’s look closely at the LEGO investment market and how it operates.
Secondary Marketplaces
The primary way to buy and sell LEGO sets as investments is through secondary marketplaces, such as eBay, BrackLink, and specialized LEGO marketplaces.
These platforms connect buyers and sellers, allowing collectors to acquire rare or retired sets.
Investment Strategies
Investing in LEGO sets can take various forms. Some investors focus on acquiring sets from specific themes or franchises, while others aim to collect sets expected to be appreciated due to their rarity or exclusivity.
Some investors buy and hold LEGO sets for the long term, waiting for them to appreciate significantly before selling.
Factors Affecting LEGO Set Value
Several factors can influence the value of a LEGO set in the secondary market:
Rarity: Limited edition sets or those with unique minifigures are more valuable.
Condition: Sets in mint condition with unopened packaging command higher prices.
Demand: Popular themes and franchises have higher demand, increasing prices.
Age: Older sets no longer in production can appreciate.
Cultural Significance: Sets tied to iconic movies, TV shows, or historical events may see increased interest and value.
Success Stories and Notable LEGO Investments
Let’s explore real-world success stories and notable LEGO investments to understand better the potential returns from investing in LEGO.
The Ultimate Collector’s Millennium Falcon
One of the most famous LEGO investments is the Ultimate Collector’s Millennium Falcon set (#10179), released in 2007.
Initially priced at $499.99, this set became incredibly valuable after its retirement.
In 2018, a sealed, new-in-box set sold for a staggering $15,000 on the secondary market, showcasing the incredible potential for ROI with LEGO sets.
LEGO Modular Buildings
LEGO’s Modular Building series has also seen remarkable growth in value. Sets like the Cafe Corner (#10182), Green Grocer (#10185), and Market Street (#10190) have appreciated substantially since their release.
Savvy investors who acquired these sets early have seen their investments grow significantly.
LEGO Star Wars Sets
The Star Wars theme is a goldmine for LEGO investors. Sets based on this beloved franchise, particularly those from the original trilogy, have consistently appreciated.
The UCS Millennium Falcon mentioned earlier is just one example, with many other Star Wars sets following a similar trajectory.
Potential Risks and Challenges
While investing in LEGO sets can be profitable, it’s important to know the potential risks and difficulties this specialized industry poses.
Market Fluctuations
The value of LEGO sets can be subject to market fluctuations. Like any investment, there are no guarantees of profit, and some sets may not appreciate as expected.
Storage and Preservation
Proper storage and preservation are critical to maintaining the value of LEGO sets. Exposure to sunlight, moisture, or temperature extremes can damage the bricks and packaging, reducing their value.
Time and Patience
LEGO investments often require time and patience. While some sets appreciate quickly, others may take years to see significant returns. Investors should be prepared for the long haul.
Tips for LEGO Investors
If you’re considering LEGO investments, here are some essential tips to help you get started on the right foot:
Research and Education
Invest time in researching LEGO sets, themes, and the secondary market. Understand the factors that affect a set’s value and learn from the experiences of successful LEGO investors.
Diversification
Diversify your LEGO investments by acquiring sets from various themes and franchises. This reduces the risk of your portfolio heavily relying on a single set or theme.
Buy with Intention
Purchase LEGO sets with a clear investment strategy in mind. Consider the rarity, demand, and potential for appreciation when adding sets to your collection.
Conclusion
In the ever-evolving world of investments, LEGO sets emerge as a unique and potentially lucrative option.
Their combination of nostalgia, creativity, and exclusivity makes them an attractive choice for collectors and investors.
While LEGO investments come with risks and challenges, those who do their research, exercise patience, and invest strategically can reap significant rewards.
So, are LEGOs a good investment? The answer depends on your investment goals, but for many, the world of LEGO investments offers a colourful and profitable adventure worth exploring.
FAQ:
Will Lego go up in value?
LEGO sets can appreciate over time, especially rare or discontinued sets.
Is Lego a good long-term investment?
LEGO can be a good long-term investment if chosen wisely, but it comes with risks and requires patience.
Which LEGO sets are worth investing in?
Sets that are rare, exclusive, or tied to popular franchises like Star Wars are worth investing in.
Is it possible to invest in LEGO?
Yes, it’s possible to invest in LEGO sets by purchasing and holding them with the expectation of future value appreciation.
Is LEGO more valuable than gold?
LEGO sets can become valuable collectables, but gold remains a traditional store of value with a different investment profile.
Do LEGOs lose value if opened?
Opening a LEGO set can reduce value, as collectors often prefer sealed, unopened sets for investment purposes.
Why do people buy LEGOs?
People buy LEGOs for creative enjoyment, nostalgia, collecting, and as potential investments due to their enduring popularity and value.
