new study suggests that investing in LEGOs is more profitable than gold

toys prove to be better investment than gold

to anyone who thinks that LEGOs are just toys for kids, think again… a new study has found that investing in these plastic blocks will bring greater profits than if you had put the same money into gold.

in fact, according to researchers at the higher school of economy (HSE) in moscow, prices of retired LEGO sets grow by at least 11% annually, which is higher than the average returns provided by gold and large stocks.

LEGO star wars R2-D2 set

images courtesy of LEGO

legos profit more than stocks, bonds, and collectibles

led by associate professor victoria dobrynskaya, a group of researchers at the HSE university (find more here), explore financial returns on alternative collectible investment assets, such as toys, using LEGO bricks as an example. as specified in their study, such iconic toys with diminishing supply and high collectible value appear to yield high returns on the secondary market.

looking at the prices of 2,322 LEGO sets from 1987-2015, the team found that ‘average returns on these sets are 10-11% annually (and even higher if the new set was purchased on the primary market with a discount), which is more than stocks, bonds, gold, and many collectible items, such as stamps or wines, yield.’

LEGO star wars millennium falcon set

most expensive sets include the star wars kits and the taj mahal

the study also notes that there is great variation within the returns, which range between -50% to +600% on an annual basis, with the prices of sets typically increasing two or three years after they have been withdrawn from the market. in addition, according to the researchers, the rates of small or very large sets will grow faster than medium-sized ones.

the sets that see the biggest growth in value on the secondary market are thematic ones, related to famous architecture, popular TV series and movies, or holidays. in fact, the most expensive sets include the millennium falcon, death star II and the imperial star destroyer from star wars, the cafe on the corner, and the taj mahal. 

LEGO taj mahal set

LEGO imperial star destroyer set

LEGO home alone set

LEGO friends ‘central perk’ set

project info:

study name: toys prove to be better investment than gold, art, and financial securities
university: higher school of economy in moscow, russia
research led by: victoria dobrynskaya