According to Forbes, Lego sets are the best performing collectible assets with higher returns than wine, cars, and gold. Legos are estimated to have an average 8% return after inflation. Therefore, if you are already a Legos fanatic, you may want to consider expanding your love for them into investment.
As a collectibles investment opportunity, the return on investment is tied to the market’s perception of the value and scarcity of the given set over a given time. Therefore, if you can master picking the right Lego sets, spotting trends in their demand, supply, and prices, and identifying the best time to sell, this can be a lucrative money-making opportunity for you.
How to Pick Lego Sets for Investment
The good news is the majority of Lego sets increase in value over time. However, it seems that those that have been out of the market for longer fetch higher returns over time. Superhero sets, seasonal sets, and sets based on popular films also perform well. Surprisingly, a 2018 research paper, indicates that smaller sets fetch the best returns and medium-sized ones have the lowest profit margins.
Therefore, to increase your chances of making a great return on investment, buy sets that are already retired or retiring soon, seasonal sets, and limited-edition sets.
Tips for Being a Successful Lego Investor
- Keep Up with Lego Trends.
Pay attention to retiring, upcoming, and most popular Lego sets. Chances are, sets that are popular now will have high value as collectibles.
- Take Care of Your Lego Sets.
Think of them as assets or stock in a business. For them to fetch the highest possible price, they need to be in tip-top condition. Therefore, invest in good storage.
If a set has not been opened, the opened box preserves its condition as long as you keep it away from moisture and direct sunlight. If it is opened, find high-quality cardboard boxes to store it in. Avoid using your collectible sets for everyday entertainment. They will wear out and diminish in value.
- Be patient.
Well, unless you have several sets whose value goes up significantly at the same time. Investing in Lego is not a get-rich-quick scheme. It is a buy–and–hold type of investment. The longer you hold onto a set, the scarcer it becomes, and the higher its price gets.
What are the Challenges of Lego Investing?
- The Market is Speculative. You cannot predetermine the exact price you will sell the set at. You have to wait and see how the market value progresses.
- You Require Lots of Storage Space for Large Scale Investment. If you want to go all out and invest in hundreds of Lego sets, you will need a lot of space to store them securely.
- Lego Might Release a Newer Version of a Retired Set. If a retired set is reintroduced on the market, its resale value may decrease significantly.
Conclusion: If you are looking for a long-term, passive investment opportunity, you might want to consider Legos. They are the latest entrants in the collectible investments industry, yet they have the highest ROI.
Grab our Latest Lego Retiring Spreadsheet: brickflips.com/retire