Is the boy an investor who sold a 2010 Lego set on ebay for three times its retail value? Why not? If the subject of your investment is growing, then it doesn't matter whether it is gold, bonds or a children's construction set.
Lego - plastic gold?
In theory, each financial instrument can rise in value. Otherwise, what's the point of investing money in it? Stocks are rallying thanks to good financial reporting, gold due to limited supply and crises.
But why does the plastic construction set become more expensive? We see several reasons here:
1. The Lego company produces sets in limited editions and constantly updates the assortment. This means that every year an artificial shortage of last year's kits is created.
2. Lego sets are designed to be opened and assembled. Therefore, unopened factory packaging automatically makes the kit something unique at the moment when it is discontinued.
3. The designer has a strong connection with childhood memories, so wealthy adults are ready to pay big money for a sense of the strongest nostalgia.
4. Over the years, the designer does not lose its consumer properties. The 10-year-old kits go well with the ones currently in production.
5. The prevalence and popularity of the designer around the world made him an excellent collectible.
How much can you earn?
The British thetelegraph published an article in 2015 claiming that sets are growing at an average rate of 12% per year, Agree, a good alternative to a bank deposit. Naturally, from set to set, the numbers can be very different.
A real idol for all Lego investors is the "Cafe Corner" set, which went on sale in 2007. With a retail price of 89.99 euros, the sealed box can now be found on ebay for $ 3,700!
3 tips for the lego investor
1. Only sealed sets are of real value. Moreover, the condition of the box also affects the price. When buying an investment kit, make sure that the cardboard is not torn and the paint is peeled off. Also, try to store the box in a dry, dark place to prevent fading.
2. As practice shows, the most valuable sets are those that are timed to some kind of films. The licenses for the release of themed products are often limited, which means that the kits are released for a very limited period of time. For example, Lego sets from the Star Wars and Harry Potter series are among the most sought-after and expensive in this market.
3. Explore BrickPicker.com This is a real stock exchange for old legos. On it you will find information about how much a particular set is priced, as well as information about current discounts. And of course there is a forum for all Lego fans.
What are the disadvantages of investing in Lego?
Despite the fact that this type of investment seems so funny, simple and interesting, it has a number of significant disadvantages.
First, the liquidity of this market is poor. It is not a fact that there will be a buyer for your rare set in perfect condition, ready to give a couple of thousand dollars for a constructor. And this is rightfully the main problem of this type of investment.
Secondly, the instrument is not at all suitable for investing at least some significant capital. Can you imagine half a million rubles in Lego boxes? We are with difficulty. Storage will require a warehouse, and this is a significant cost.
Thirdly, the market is highly dependent on fashion trends. A new part of Star Wars is out? It is logical that there will be a demand for classic sets. But what if a certain topic faded and forgotten?
conclusions
This type of investment looks simple and incredibly profitable only from the outside. Indeed, the $ 8,000 price tags are amazing.
However, in fact, Lego investing has so many serious drawbacks that you should not go further than buying one or two sets as an experiment.
The target is no more than 5% of your capital.
