The Collector's Series: Lego® Sets | By Reagan A. Hamilton, ChFC®
By Reagan A. Hamilton, ChFC® - Financial Consultant
In the realm of collectibles, LEGO® sets have emerged as a surprising star. What once adorned children’s bedrooms and living room floors has evolved into a lucrative market for enthusiasts and investors alike. Over the past two decades, certain LEGO® sets have skyrocketed in value on the secondary market, turning what were once simple playthings into sought-after treasures.
LEGO®, originally designed as an educational toy by Ole Kirk Christiansen in 1932, gained popularity globally for its creativity and durability. However, it wasn’t until the late 1990s and early 2000s that LEGO® began to be recognized beyond its play value. Collectors started to notice certain sets gaining value as they became discontinued, sparking a rush to secure these items for future investment.
Examples of Value Appreciation
Let’s take a journey through some notable LEGO® sets and their journey from store shelves to the secondary market:
1. Café Corner (10182)
Original Price: Released in 2007 for approximately $140.
Current Market Value: Often sells for over $800 in mint condition.
This modular building was one of the first LEGO® sets in their modular series and is highly prized by collectors for its intricate design and rarity.
2. Star Wars Millennium Falcon (10179)
Original Price: Released in 2007 for around $500.
Current Market Value: Often sells for $2,000 or more in sealed condition.
As one of the largest LEGO® sets ever produced at the time, its appeal to Star Wars fans and collectors has driven its value exponentially.
3. LEGO® Star Wars Cloud City (10123)
Original Price: Released in 2003 for $99.
Current Market Value: Often sells for $7,000 or more in sealed condition.
This set features mini-figures of very popular characters such as Han Solo, Darth Vader, Luke Skywalker, Boba Fett, and Lando Calrissian.
While LEGO® sets have shown impressive appreciation on the secondary market, how do they stack up against traditional investments like the S&P 500 index?
S&P 500 Index: Over the past 20 years, the S&P 500 index has shown an average annual return of approximately 8-10%, including dividends. This steady growth is considered a benchmark for long-term investment performance in the stock market.
Several factors contribute to the increase in LEGO® set values:
Limited Production Runs: LEGO® often releases sets in limited quantities, especially those tied to licensed properties or special editions, increasing their rarity over time.
Pop Culture Impact: Sets tied to popular franchises like Star Wars or Harry Potter attract both fans and collectors, ensuring sustained demand.
Condition and Rarity: Sets kept in mint condition, ideally sealed in their original packaging, command significantly higher prices due to their rarity and appeal to serious collectors.
Looking ahead, the LEGO® market shows no signs of slowing down. As new generations of collectors emerge and nostalgia for childhood favorites persists, the value of certain LEGO® sets is expected to continue appreciating. However, investing in LEGO® sets requires knowledge and research, as not every set becomes a valuable collectible.
In conclusion, LEGO® sets have transcended their original purpose to become valuable artifacts in the world of collecting. Whether you’re a seasoned investor or a casual fan, the allure of LEGO® timeless appeal and potential for value appreciation makes it a fascinating hobby and investment avenue.
Lego® sets will only continue to appreciate if collectors are still willing to pay a significant premium to own rare sets. Just like any collectible, we will likely continue to see fluctuations in value over time. Past performance is not indicative of future results, but as long as demand significantly outpaces supply, the rare Lego® sets could continue to command a significant price premium.