Now is the right time to invest in Lego
Move over, Bitcoin
March 30th, 2024
In recent years, the practice of buying and reselling Lego sets has become a very profitable business. In 2021, Legos yielded proportionally more than gold or artwork, and even today it can be very convenient to invest in out-of-production sets, to the extent that among enthusiasts it has become a common practice. The Wall Street Journal estimated that the number of people investing in Lego is now tens of thousands, a figure that over time has helped the emergence of YouTube channels dedicated to providing advice for those interested in this direction, such as The Brick Quest, as well as online portals, for example Brick Fanatic and BrickEconomy. There are also various vertical sites on Lego trading, such as BrickLink and Brickset, which connect collectors with enthusiasts - who usually fall under the so-called AFOL, that is, "Adults Fan Of Lego". These individuals are sometimes willing to pay several thousand euros for sets that are no longer in production. For example, there's the case of the limited edition "Lego Café Corner", which is valued at around 2000 euros in secondary markets. The toy, which depicted a European-style building with a café, originally cost just over 100 euros when it was released in 2007, but since the company discontinued it a couple of years later, its value skyrocketed.
Why investing in Lego can make sense
Compared to other products like luxury watches, Lego sets do not require large initial investments: even limited edition sets, when initially distributed, tend to have relatively affordable prices. Usually, before announcing the retirement of a set, official retailers apply discounts with the goal of getting rid of all remaining stock. Sooner or later, all Lego sets are withdrawn from the market, usually the company does this about two years after release. It's precisely this that allows their price to increase (generally by at least 150% over a few years) and makes these investments relatively reliable. The market, although niche, is very dynamic since new sets are introduced and retired frequently. By following various online portals, it's possible to keep track of sets that are likely to be discontinued from the official market, which still requires some knowledge of trends within the industry. Certain editions dedicated to very popular sagas, such as Harry Potter and Star Wars, significantly influence the market, to the extent that Lego has learned to capitalize on this by dedicating numerous sets to these themes. A part of the company's success - founded in Denmark in 1932 - comes precisely from investments made in collector's editions. Today, the company is the world leader in the toy sector and continues to grow: in 2021, sales increased by over 20% compared to the previous year, reaching a turnover of more than 7 billion euros.
It's not just Lego that's strong
Due to the pandemic, collectible games have become a safe haven asset, a phenomenon that doesn't just concern Lego. Investing in less conventional products, whose purchase is often initially tied to recreational reasons, can generally ensure good economic returns. Alongside Legos, Barbies or model cars and trains are also popular. The same goes for playing cards, such as those from Magic: The Gathering, Pokemon, or Yu-Gi-Oh. The resale market for certain clothing items and sneakers can also be considered as a niche in itself: in this area, for example, much emphasis is placed on so-called "scarcity marketing". This is a practice followed by many companies active in the streetwear field and essentially represents a sales strategy based on generating interest among consumers through products that are inherently rare.