Brickvesting

 

What is brickvesting?

A relatively new and not at all well-known form of investing is putting your money in lego-sets, sometimes called brickvesting. In short, you buy lego-sets that will be discontinued in the near future and sell them later for profit. All lego-sets prices rise when they are no longer sold in stores. Especially good investments are sets based on much liked franchises such as Star Wars, or architectural sets.

How good investment can legos be?

Good. According to Time during the last 15 years lego-sets on average have increased in value for about 12%. Gold is at about 9%. But that doesn’t paint quite the right picture. The trick is to buy them when they are close to being discontinued. Sets that were discontinued last year see a rise in value of 36% on average, that’s quick money if you know when to buy. There are sites that help you predict what sets are going to be discontinued next and Lego also tags those products as “expiring soon”.

And the sets most in demand can go crazy. For example; Lego sold “Café Corner” for USD 137 , which was discontinued in 2007. Now it has a market value of USD 3123 !

thumbler

The Thumbler cost USD 200 when it retired 1.1.2016. It’s now, 3,5 months later, worth USD 328. And in pristine condition USD 500

 

How can toys increase in value?

“Limited edition” is the bread and butter of all collectibles and all lego-sets are eventually discontinued, essentially making them limited edition. On average lego-sets are made and sold for about 4 years. Lego doesn’t promote the secondary market and most sets are opened, played with and put away. That means unopened sets or otherwise sets in pristine condition are even more limited. Lego has such a huge consumer base that there is always demand for older sets, for collections or to play with. Legos will always have worth as toys and collectibles. All these factors are a solid guarantee that this is not just a bubble.

Drawbacks?

Trading with physical collectibles creates a lot more fuzz than trading with stocks. If you have many sets they can take space you don’t have. There is also danger of damaging the sets while you have them in storage and the trouble of selling them on eBay and shipping them off. You also have to keep an eye on the market what sets are expiring soon.

Should I add legos to my portfolio?

Legos can be a fun and quite safe way to make some cash. If you have room to spare for a box or two, you should definitely consider it. There are great websites that help you figure out good investments right now and the price ranges from about USD 30 to USD 700 .

Sources:

http://time.com/money/4162059/lego-investment-compare-gold-return/

http://www.bricksomania.com/pages/brickvesting-17/making-money-from-lego-bricks-43.html

http://www.telegraph.co.uk/investing/shares/lego-a-better-investment-than-shares-and-gold/

http://www.amazon.com/LEGO-6062409-Superheroes-The-Tumbler/dp/B00MU2DMX8

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6 Responses to Brickvesting

  1. piesnrol says:

    Interesting! Something different!

  2. sasupatrik says:

    Quite an interesting topic! I did not even know that you could invest in LEGOs.
    The post was well written and not at all too long.
    Question: What is the target group for investing in LEGOs?

    • konstapu says:

      People who pay extra for discontinnued sets are generally adults who collect legos and other lego-investors. There are lots of adult lego-hobbyists who collect different architectural sets and movie-based sets, but also adults who buy legos online for their kids.

  3. minpar says:

    Totally new thing for me. I had no idea that you can make that much money just on toys.

  4. iiroten says:

    Never heard of the term before! Nice!

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