Snazz Industries

  • Home
  • Snazz Day to Day
  • Guides
    • Lego Investments
    • How to Sell Collections
  • Bulk Lego
  • Contact Us

Is Lego a Good Investment? Yes! 4 Tips to successfully invest in Lego

7/5/2012

10 Comments

 
Lego may be a children's toy, but it also can be a viable investment strategy (as long as you don't mind storing them in your house!) Following are 4 tips to make the most of a Lego investment.

1) Be Patient

                     Very rarely with Lego can you buy a set one day and then ship it out the next. The most profit comes from making a smart purchase, and then sitting on it for some time until prices rise. After buying a set, do not be tempted to sell it even a couple months after purchase. Most times, prices dip before they rise again. But unlike other commodities, prices of lego always rise back again. The main reason for this is the rarer the set, the more the demand. Since the supply is limited (Lego has stopped manufacturing the set), prices rise in accordance. So don't be discouraged after buying to see the prices slowly deflate. Patience is key. Waiting out the slow decline in price will bring a period later on where prices slowly rise again. How long should you wait? Its really a matter of personal preference, but generally a year after the set is retired (not sold in stores anymore) is ideal. After that point, there is less buzz about the sets, so the prices level out.

2)  Know the Market

                Certain genres and sets do better than others, that much is clear. But how to chose sets and minifigs that will rise the most and give the best returns? To get started, bricklink's past price guide is an invaluable source. Take Medieval Market Village, for example. (Check our investment guide for it here). You might look at the set and think that it could be a good investment. In order to back up your hunch, check out bricklink's price guide. Here, the site is divided up into two columns, one for the past 6 month sales and the current items for sale. In this particular example, the average price for the set in the past six months was $104. Now, however, the average price for current items on sale is $175. Prices are on the rise, time to invest. Over time, hunches fueled by price guide information will show several genres of sets more likely to succeed than others. Generally, modular houses sell the best and have the highest gains. Look at Market Street, almost $2,000 now. Imagine you bought the set when it was selling for $90. You would have invested in a set that grew 10-fold.

3) Know the Minifigs

                      Sometimes, minifigs sell better than the sets that they came in. Selling minifigs is often easier than a set. While with a set the buyer requires a lot of capital (especially if you are selling at the end of the price curve, when prices are the highest), minifigs can be bought by a much wider audiance. Kids often want a full collection of lego star wars jedi knights, which opens up a much larger market. The key then to properly investing in Lego is to diversify the portfolio between minifigs and sets. Star Wars figures typically sell the best. Look at Star Wars clones, which I have been successful investing in. If you bought a bunch of these clones a year or two ago, selling them slowily at today's prices would result in a nice profit. Once again, use the price guide to prospect minifigs that you think will sell well in the future. Unlike sets, minifigs do not always rise in price later, so proceed with caution. If there is low demand for a figure at the beginning, the demand is unlikely to rise later.

4) Don't be discouraged (and how to cash in on the investment)

                      This is really just saying "Be Patient" once again, except in a the arena of selling. Once the time comes to sell your investment, list the wares, but then expect to wait a while. Rare and antique lego has a rabid market, but it does take a while for collectors to both notice the listing and then rally enough cash to buy it. There are several different marketplaces to sell Lego, each with their pros and cons (which I will go more in depth in a following blog post). Just know ebay will net the lowest amount but sell the fastest, Amazon will make you the most money but take the longest to sell and Bricklink will be vary. Still, don't despair when your sets do not sell right away. Just remember that you have a commodity that only a few people in the world have. Buyers will come.

Those are the 4 major broad tips to investing in Lego. Let me know though--do you invest? Are you looking to invest? Comment below to let me know!

10 Comments
agri tips link
8/5/2013 06:11:48 pm

Sure short advice are very essential for successful investment. Thanks for sharing.

Reply
miriam
1/26/2016 03:38:05 pm

Hi! im a young girl from spain, i would like to collect lego, i dont have any yet... i write you because i want to buy, what lego do you recomend me??
congrats, i love your post.

Reply
Simon Brooks link
4/5/2016 07:43:28 pm

It really is surprising just how good of an investment Lego can be if you know what you're doing, so thanks for the great advice on how to get started. I definitely agree with what you've said about not selling a set immediately; Lego very rarely repeats themes or sets and, if they do, it's not usually in the same way. That means that the set you're sitting on could be very valuable to someone in a few years because it's the only way they can get that set that they missed out on.

Reply
Miriam
4/6/2016 04:43:15 pm

thanks

Reply
Tyler
9/27/2016 05:32:40 am

I think one of the best investments is the minifigure series I have every one sealed and a sealed mr gold and hundreds and hundreds of them open Roman soldiers sell for like £16.50 now open I have like a 100 and loads sealed buying full boxes of minifigures is great also I bought the German team full box for 200 and now sells for double due to it having three full sets of the German team in the big ucs sets and large city and other sets are the best to invest due to the price of them

Reply
best financial investment in Luxembourg link
7/9/2018 01:19:04 am

Hey what a brilliant post I have come across and believe me I have been searching out for this similar kind of post for past a week and hardly came across this. Thank you very much and will look for more postings from you.

Reply
Learn More Here link
7/9/2018 03:20:17 am

Interesting topic for a blog. I have been searching the Internet for fun and came upon your website. Fabulous post. Thanks a ton for sharing your knowledge! It is great to see that some people still put in an effort into managing their websites. I'll be sure to check back again real soon.

Reply
Boulevard 88 Freehold Condo link
7/24/2018 04:32:36 am

Impressive web site, Distinguished feedback that I can tackle. Im moving forward and may apply to my current job as a pet sitter, which is very enjoyable, but I need to additional expand. Regards.

Reply
slickcashloan.com link
10/27/2018 05:33:47 am

This is the type of information I’ve long been trying to find. Thank you for writing this information.

Reply
future plannings link
2/23/2020 12:03:50 am

Thanks for the blog loaded with so many information. Stopping by your blog helped me to get what I was looking for.

Reply



Leave a Reply.

    Purpose

    Tips and Tricks for Selling Lego online, including sets and minifigs to save for later. Lego Investment advice.

    Archives

    December 2013
    July 2013
    July 2012
    April 2012
    January 2012
    June 2011
    March 2010
    February 2010

    Categories

    All
    $300 Profit
    $500 Profit
    Castle Sets
    City Sets
    Investment
    Lego
    Tips And Tricks

    RSS Feed

Powered by Create your own unique website with customizable templates.