There have been a lot of weird investing ideas in the last few years. What is the best investment? Experts say that it’s LEGO.
Some would prefer real estate while others would prefer raw materials. There is an argument to be made that it is the best investment.
LEGO is a better investment than gold.
This sounds crazy. How should a line of plastic blocks, regardless of how very much made they are or that they are so amusing to play with, be a preferable venture over gold? This is the case according to a group of Russian researchers.
The economists made a point.
The authors wrote that LEGO offers a better return on the initial investment than, “bonds, gold, and many collectible items, such as stamps or wines, yield.”
It is cooler than stamps or wine, however, how might it be preferable to speculation over gold?
There are various variables influencing everything
LEGO is popular, but it isn’t going to make anything valuable. Unless you’re talking about a limited edition Coke product, Coca-Cola doesn’t hold much value.
Part of it is due to scarcity.
Many LEGO sets are produced in limited quantities before being taken out of production forever, which helps retain their value, according to the authors. It’s easy to see how the value of those sets can increase over time.
There is not much of a secondary market.
Since it is an item that is purchased in pieces and afterward set up, most authorities will construct a set and keep it. Most people aren’t willing to disassemble thousands of pieces, and there isn’t much of a market for secondhand, fully-built LEGO sets.
What other factors are involved?
LEGO is a nostalgic object that’s held its popularity over the years and isn’t subject to the same fluctuations as the raw materials bought and sold on the stock market.
The initial cost is low.
The low production cost is one of the reasons LEGO is different from other collectible objects. It is cheap and easy to find.
How can you invest in LEGO?
Small sets and big sets appreciate value more quickly than medium-sized sets. Small sets often contain unique pieces, while larger sets are produced in limited quantities.
It’s time to buy the LEGO Titanic before it’s gone.
Is LEGO a good investment?
You’ll probably be fine if you stay within the parameters of valuable sets, which specialize in big or small sets produced in limited quantities. The authors caution that not all sets appreciate in value as quickly as the big returns would suggest.
Don’t dig through your toy bins just yet.
Everyone has a big box of LEGO in their basement, but unless there are rare pieces, it probably isn’t worth much. The LEGO sets are worth considering. It’s a better investment than gold.