Lego is not only a toy, but also a profitable investment. In fact, these plastic blocks have been found to cost more than gold.
Lego is the best toy for a child. They provide hours of entertainment. But did you know that with these games you can get a decent return? Find out how much Lego is more profitable than gold and how to get the most out of buying it.
Why is Lego cheaper than gold?
Economists from the University of Higher School of Economics in Moscow said that they checked the prices for 2,322 sets of Lego in the period from 1987 to 2015. They found that the average profitability of these sets varies by 10-11% per year. It the rate of return is much higher than gold and stocks and even collections.
In addition, they found that these revenues can fluctuate significantly between -50% and + 600% on an annual basis. In addition, prices for small or large sets are growing faster than for medium sets. This phenomenon is probably due to the fact that small sets often contain individual objects or figures. As for large sets, they are available in small quantities and are more attractive to adults.
Some of the most expensive but lucrative Lego sets include the Millennium Falcon, Corner Cafe, Taj Mahal, Death Star II and Imperial Star Destroyer. Indeed, “them rarity increases their value from the point of view of the collector. »
But while many Lego kits are highly profitable in the overall aftermarket, not all kits are equally successful. Learn how to invest in these games.
How to get the most out of Lego shopping?
Lego games are likely to increase in value over time those who retire in a year or two in favor of newer and more popular games. Among the Lego sets, the cost of which is likely to increase over time, there are specific collections, such as Harry Potter and the Star Wars.
In fact, they are often taken out of production every year to make room for new series. So they are a good way to invest money. In fact, these games have the potential to become a family heirloom and rise in price. And the price of their resale on the secondary market may even increase.
If a Lego game costs 90 euros today and is then taken off the market, its value can increase to 250 euros in the future. This is a very good return on investment.
Properly preserved Lego constructors are the most profitable
in Lego set in good condition plays an important role in making investments more profitable. Is it open or new in the box, sealed and in perfect condition? These criteria affect its price on the secondary market when you sell it. Therefore, the preservation of designers is a key element in ensuring the preservation of their value. Otherwise, coins may lose their value and even depreciate.
There are many ways to save your investment. Especially in an airtight container, which will prevent contamination or breakage of parts. In addition, protective cases prevent the loss of parts and protect them from moisture and dust. They are ideal for demonstrating a Lego set after its assembly.
To get the most out of reselling Lego games, you need to keep them in the original packagingwithout opening them. Thus, the details are guaranteed to be in perfect condition. In addition, an already open game can be cheaper.
Invest in the long run for more profits
Many factors can affect the profits from Lego sales. Among the most important – the shelf life before sale. To make more money, you need keep them for at least a few years.
As with any other form of investment, to make Lego more profitable, you need to be patient and wait for the game to become unavailable before selling it. In fact, kits made 20 or 30 years ago are nostalgic for Lego fans, and their price is rising. For example, the initial selling price of the Millennium Falcon was € 500 when it was released in 2007. Today, new and sealed copies are sold on the secondary market for 3,500 euros and more. This is equivalent to a price growth of about 14% per year.
During this time, be careful, as LEGO may release an updated version that will make the collection obsolete.
Limit the amount to invest
Lego games are part of an alternative investment strategy that may have less risk. They may also be inversely correlated with the general stock market. In some cases, alternative investments, such as Legos, can grow and become more profitable when the stock market falls.
As with all alternative investments, investing in alternatives may risk not saving enough money for other priorities. The amount of money spent on Lego games should be limited. In total, only about 10% of the portfolio should be invested.
Having a sales plan, it is more profitable to invest in Lego
It is better to have a sales plan to get a high return. In fact, while investing in Lego kits is a great way to make money, you should have exact concept to avoid impulsive shopping. These purchases affect the selling price and potential return on investment.
The first step is this do research. To do this, you need to browse several different websites that sell Lego to find the Lego kits that are currently popular. Then you have to determine the price where they were sold in the past and how often they were sold.
This is necessary later learn about the price range used Lego constructors, their availability, and the areas with the highest number of transactions, such as state or region.
Determine the best time to sell them
To do this, you need to determine the time of year when it will be most profitable to sell Lego, and see if prices rise or fall at certain times of the year.
It is also necessary set the selling price of the designer and the desired profit for investment. This is done by calculating the average and maximum value of the designers to determine whether to sell or give them away.