UNUSUAL ASSETS
Here’s a look at unusual but profitable investments people are buying.
Here’s a look at unusual but profitable investments people are buying.
Lego sets are more than child’s play. Since the Danish company started reaching out to adults in the noughties, a huge secondary market has evolved, with fans splurging on out-ofproduction sets.
What is the appeal of the plastic brick? Barring a period where it neared bankruptcy, Lego’s popularity has shot through the roof since it first started selling wooden toys in 1932. The simple ingenuity of how the blocks can be stacked to create just about anything has everything to do with its appeal. Plus, the sets span an extensive range of themes and interests, so there’s something for everyone.
Why Lego sets appreciate revolves around a combination of factors – their rarity (sets tend to be discontinued after two years), detailing and whether they are based on a movie franchise. Most of all, they feed the main reason for why anything increases in value: demand. And that is an inexact science.
Collector Wu Guohong, a civil servant, says, “I thought Lord of the Rings sets would become quite valuable after they were discontinued, but prices didn’t go up that much. So, as with all forms of investments, it’s a judgement call.”
Risks aside, the rate of returns can be astonishingly high. Some adult fans of Lego have turned into full-time investors. A study, TheToyofSmart
Investors, by assistant professor Victoria Dobrynskaya of Russia’s Higher School of Economics that was published last year revealed that Lego sets yielded a return rate of 11 per cent, with some going as high as 613 per cent.
Take, for instance, one of the most valuable collectibles – the Star Wars Millennium Falcon released in 2007. According to Lego expert Gerben van IJken with auction platform Catawiki, its price rose from U$500 (S$700) to a high of US$5,700. Although a re-release in 2017 affected its price, the resale value of the original at U$1,679 was still profitable.
Among the collections that have seen appreciation in value are themed ones, especially exclusives. Last month, Lego released the exclusive Ultimate Collector Star Wars A-wing Starfighter. This model is highly detailed, with pivoting laser cannons, a removable canopy and a pilot mini figure. Investment-worthy? Possibly.