Lego Sets Have Been a Better Investment than Gold Since 2000

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  1. Brian in Mesa

    Brian in Mesa BIM™ Contributor

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    Lego Sets Have Been a Better Investment than Gold Since 2000

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

    Lego is a beloved toy brand, not an investment vehicle that’s part of many people’s portfolios. Only, maybe it should have been. Since the year 2000, the Danish building blocks have actually appreciated better than numerous investments.

    In the last 15 years, the average value of a Lego set has gone up, with “pristine condition” sets appreciating 12%, according to the Telegraph, which added that prices jump when a model is discontinued, and that sets from last year are up around 36%.

    This kind of return is incredible. In that same span, the S&P 500 has returned about 4.2% annually, gold 9.6%, and the the U.K.’s FTSE 100 is about the same as it was at the turn of the millennium.

    Products in highest demand are specialized sets like Star Wars editions, but apparently everyday versions are still highly sought after, according to the Telegraph, which crunched the numbers from Lego enthusiast site BrickPicker.com, which in turn crunches eBay’s numbers. The Internet auction site is the most common trading ground for rare and discontinued models. And since Lego is constantly retooling its offerings, the exchange is healthy.

    With numbers like 36% being thrown around—and articles like this being written—it’s hard not to see some bubble-like characteristics at play. But BrickPicker.com’s founder told the Telegraph this isn’t the case, “partly because the Lego company doesn’t promote the secondary market, it wants to sell direct to customers.”
     

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