Skip to main content
  1. Home
  2. Culture

A new study says investing in LEGOs is better than gold

This investment strategy is certainly more fun than traditional methods

Shannon Cooper
By

Looking to diversify your portfolio? Traditional wisdom may tell you to invest your money in gold, artwork, antiques, or wine. But, according to a surprising new study, there’s a much more lucrative investment available: LEGOs. While you might think LEGOs for adults are purely for nostalgia, that’s not exactly true. Keep reading to learn why you should consider trading in your gold for the colorful bricks of your childhood.

City street scene made with LEGOs
Image used with permission by copyright holder

LEGOs are worth more than gold

A recent study published by the Research in International Business and Finance journal has put a serious spin on traditional investing advice. Economists at the Higher School of Economics (HSE) in Russia found that LEGOs provide a higher return on investment than most other investment alternatives.

Recommended Videos

Researchers examined primary sales data, online auction transactions, and the prices of more than 2,000 unopened LEGO sets from 1987 to 2015. They found that the market prices of retired LEGO sets, when sold on secondary marketplaces, grew by at least 11% annually. This is higher than the average returns for gold, large stocks, bonds, and other types of investments.

Related

“We are used to thinking that people buy such items as jewelry, antiques, or artworks as an investment. However, there are other options, such as collectible toys,” Victoria Dobrynskaya, co-author of the study and a professor at HSE, says on the HSE website.

Smart investors can make thousands of dollars on the secondary toy market. “Even taking into account the small prices of most sets,” she continues, “this is a huge market that is not well-known by traditional investors.”

Pile of multi-colored LEGOs
Image used with permission by copyright holder

Why are LEGOs so valuable?

Researchers attribute the high ROI of this investment opportunity to a few different possibilities. They believe the reason people are willing to pay so much for these toys comes down to two main factors: rarity and nostalgia. LEGO sets are released in limited quantities, especially those that are based on films, books, and historic events. After these sets are retired, the number available on the secondary market is fairly small. Many owners of these sets either don’t see their value, donating them and losing parts, or value them highly and don’t wish to sell.

Lastly, the LEGO brand has amassed a massive fanbase over the years. The company has been selling toys since the 1960s. Over the decades, they’ve found a lot of adult fans who are nostalgic for older sets and willing to pay more for them.

What to know before investing

Like any investment, it’s crucial to do your research first. There are a few things to keep in mind before you start listing every LEGO brick sitting in your basement on eBay. Here’s what you should know to make your investment really count:

  • LEGO prices vary greatly on the secondary market and generally increase two to three years after retirement.
  • Returns range from -50% to +600% annually, so don’t assume every set will automatically make you rich.
  • Because of the nature of this investment and the fact that it can take a few years for a set’s value to increase, you’ll need to factor in transaction costs like delivery and storage when calculating the return.
  • The prices of small and very large sets grow faster than medium-sized ones.
  • Sets related to movies (especially Star Wars), famous buildings, and holidays see the largest growth in value, along with limited edition and promotional sets.

While selling LEGOs for adults may be a great investment, it’s not a market anyone can just jump into. “Despite the high profitability of LEGO sets on the secondary market in general, not all sets are equally successful,” says Dobrynskaya. “One must be a real LEGO fan to sort out the market nuances and see the investment potential in a particular set.” But for all of the LEGO fans and collectors out there, your hobby may be worth more than gold.

Editors' Recommendations

Shannon Cooper
Shannon Cooper
Former Digital Trends Contributor
Shannon Cooper has written about everything from pet care and travel to finance and plumbing in her seven years as a writer…
Sling TV just added these 6 new channels to its Freestream service
From reruns of classics to travel shows sure to make you jealous, these new channels have something for everyone
watching movie couple popcorn

Although the streaming era initially seemed like it was going to liberate us from the tyranny of a cable subscription, it hasn't had that effect. Instead, we just pay monthly subscription fees for a wide array of services instead of just one thing. Sling TV offers another path, though, through its Freestream service. Sling TV itself offers a variety of different channel bundles that you can subscribe to, but Freestream is a service that is totally free, and it has well over 370 different channels to peruse.

Sling TV recently announced that it was adding more than 15 new channels to its Freestream offering, and now, it's announcing that it's added six additional channels on top of those. These new channels include one entirely devoted to The Dick Van Dyke Show, as well as another devoted to British TV and a travel channel. Following the addition of these new offerings, Sling TV now says that it offers more than 41,000 on-demand titles. You can learn more about each of the new channels below based on Sling TV's descriptions:

Read more
Sling TV just added 16 new channels to its freestream service — here they are
Sling TV has added 16 new channels to its totally free streaming service that you can watch right now.
The Sling TV Logo on a black background.

 

If you've explored alternatives to cable TV in any depth, you're likely aware that Sling TV is one of the most interesting options out there. What you may not be aware of, though, is that there are some Sling TV channels that you can access without paying any subscription fees at all. Sling's Freestream service offers a wide array of channels that you can watch completely for free, and they've just added 16 new channels to that lineup.

Read more
Science says this is the No. 1 trait that makes men attractive to others
Studies point to what makes a man attractive, and it's not the quality you think
A couple showing each other kindness.

We all have different tastes, but what makes a man attractive to most people? Is it rock-hard abs? Financial security? A sense of humor? While those qualities certainly don’t hurt, the most alluring thing about a person isn't any of those. According to recent research, the number one most attractive trait people look for in a partner - is kindness! Shocked? Well, we'll explain why you shouldn't be.

Compassion is king
The most attractive men all share one essential trait that contributes to their appeal - they are all compassionate people. Don't believe it? There have been a number of studies and surveys completed over the years that confirm this.

Read more