While some people might consider gold, jewelry, art, wine or antiques to be good long-term investments, a new study challenges that idea and offers a unique and more lucrative alternative: Lego sets.
Economists from Higher School of Economics Found in Russia that market prices of retired Lego sets sold on the secondary market grow by at least 11% per year, which is higher than the average returns offered by gold, large stocks, bonds and alternative investments. For their study, the authors analyzed the prices of 2,322 unopened Lego sets from 1987 to 2015 and information about initial sales and online auction transactions.
The study will be published in the January issue of Research in International Business and Finance.
“We are used to thinking that people buy items like jewelry, antiques or artwork as an investment,” said Victoria Dobrinskaya, Professor of Economics and Finance at HSE and co-author of the study, said in a University news article. “However, there are other options, such as collectible toys. Tens of thousands of deals are made in 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.”
Researchers offer some of them Reasons Why People Pay Big Dollars for Legos. big One of them may be the small number of sets that have been produced and the limited number of people who are willing to sell their LEGOs after buying them. In addition, LEGO makes Legos since the sixties It has amassed a legion of nostalgic adult fans who appreciate older groups.
Before you start wondering if you have any Lego sets laying around your house that could be secret treasuresThere are some things you should know. First, the prices of Lego are determined in the secondary market, which differ greatly and Scope in returns From Between -50% to +600% on an annual basis, usually starting to increase two or three years after the group retires. This means that you have to take into account the height Costs such as delivery and storage are in your investment.
Second, researchers have found that prices for small or very large groups will grow faster than medium-sized groups. The collections experiencing the most growth in value in the secondary market are those related to iconic buildings, movies or holidays. As such, IIt should come as no surprise that some of the most expensive Lego sets include Millennium FalconAnd Death Star II, and the Imperial Star Destroyer. Other high-value Lego sets include limited edition sets and those offered at promotional events.
Finally, the Lego secondary market is It’s not something you can easily jump into if you’re not a fan, Dobrynskaya said. There are a lot of LEGO sets There, and it takes a true fan of market analysis and betting on a combination that might someday be more valuable.