Saturday, November 23, 2024

Economy. Investing in logos is more profitable than gold or art

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You do not even have to brainwash your brain to know what to invest in, just look under your tree: if there are logos, you have a good idea Study by the Moscow School of Advanced Studies in Economics. These little toys are more profitable than gold, art or stocks bought in a big company. Their income averages 11% each year.

“We think people want to invest in jewelry or artwork, but collectible toys are another option, citing Barbie dolls, superhero figures or small model cars and trains,” says co-author Victoria Dobrinskaya. This is a huge market that is unknown. “And in the case of LEGOs:” 11% is average over time, with some toys producing 700% yield “.

But, how to explain this glamor? First, most of these toys were made in small quantities and, over time, represent iconic movies, books, or historical events. In a way they are a part of history. Second, their presence in the market is rare: either, the owners who are most attached to it, want to keep them, or, conversely, throw them away thinking they have no value.

The most famous are Star Wars and the Taj Mahal

The authors examined the prices of 2,322 LEGO packages between 1987 and 2015 in both primary sales and online auction transactions. In the second hand market, prices usually start to rise two or three years after the set of stores retires.

The study indicates that in the first years the yield is up to + 600% per year. The prices of small and large boxes are much higher than the prices of mid-sized sets, especially since the smaller ones often have unique parts and figures.

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Also, collections dedicated to famous buildings or popular movies enjoy the greatest increase: among the most expensive logos, we find the Millennium Balkan, the famous Star Wars spacecraft, the local cafe or the Taj Mahal. The latter is currently on sale on Amazon for a moderate price of 505 euros.

“There are tens of thousands of transactions in the Lego secondary market,” confirms Victoria Dobrinskaya. But if you’re going to do that, be warned: “You have to be a true LEGO fan to fully understand the market and see the potential for investment in each package.”

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