Economists found that the prices of retired Lego sets increase by 11% annually. This is more than the average returns for gold and large stocks.
Some people might consider gold, jewelry, or wine to be long-term investments. However, a new study challenges this notion and offers a more profitable alternative: Lego sets.
The Higher School of Economics in Russia has found that retired Lego sets sell on the secondary market at least 11% per year. This is more than the average returns of gold, large stocks, bonds, or other investments.
The authors analyzed the prices of unopened Lego sets between 1987 and 2015, as well as information about primary sales transactions and online auction transactions.
The study is published in Research in International Business and Finance.
Researchers offer several reasons why Legos are so expensive. One reason is the low number of Lego sets and the few people who are willing to sell them after they have bought them. LEGO is a long-standing manufacturer of Legos, and it has a large following of nostalgic adults who treasure older Lego sets.
There are some things that you need to know before you begin wondering if you have any Lego sets lying around that could be hidden treasures. The prices of Lego sets on the secondary marketplace vary widely and can range from -50% to 600% per year.
They also tend to rise in value two to three years after a set is retired. You must consider high costs such as delivery and storage when making an investment.
The researchers also found that the prices for small and very large sets will rise faster than those of medium-sized sets. Sets that are related to movies, famous buildings, holidays, and other entertainment have the highest secondary market value growth.
It shouldn’t surprise that the Millennium Falcon, Death Star II, and Imperial Star Destroyer are some of the most sought-after Lego sets. Limited edition sets and those given away at promotional events are two other highly-valued Lego sets.
Researchers stated that the secondary Lego market isn’t something you should jump into if you aren’t a fan. There are many Lego sets on the market, so it is important to be a true fan and analyze the market before you make a wager on a set that may be worth more.
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