When it comes to investing, everyone wants to know what the next best thing is. Where can you plant your money seed and have it grow into a mighty oak? A new study reveals a surprising answer: Legos. The fun and colorful little toy bricks may be better to invest in than gold. But does that make them a better investment than NFTs? CELEB takes a look at what the experts say on each investment and then pits them head-to-head to compete for your dollars.
Legos: Better than Gold??
You’ve got your tidy $10K burning a hole in your pocket – or maybe it’s $100K or $1M, we won’t assume – and you need to figure out where to invest it. A new study reveals a surprising destination: Legos. Researchers at a Russian university compared Legos to other investment commodities such as stocks, bonds, and art and the colorful plastic bricks came out on top.
ABC7 reports, “They noted retired Lego sets that were sold on secondary markets saw prices rises close to 11% annually.
That is currently faster than the rates for gold, stocks and bonds.
According to researchers, those who invest in Legos long-term can yield positive returns two to three years after retirement.”
According to Gizmodo, economists from the Higher School of Economics in Russia studied the prices of 2,322 unopened Lego sets from 1987 to 2015 to determine how well they held and grew their value. Per Gizmodo, “‘We are used to thinking that people buy such items as jewellery, antiques or artworks as an investment,’ Victoria Dobrynskaya, an economics and finance professor at HSE and a co-author of the study, said in a university news article. ‘However, there are other options, such as collectible toys. Tens of thousands of deals are made on the secondary LEGO market. Even taking into account the small prices of most sets, this is a huge market that is not well-known by traditional investors.’” It’s not an easy investment to get into though. Lego prices are set on the secondary market and returns can range from -50% to 600% – so you have to know what you’re doing. It’s also not your run-of-the-mill mixed Lego set that will get you the big bucks. Sets that relate to movies, buildings and holidays hold the most value – such as the Millenium Falcon, The Death Star II and others.
So what’s the takeaway here? Legos can pay big – but you have to know what you’re doing or find someone who can do it for you. It’s not an amateur’s investment opportunity, but for the right person this could pay off in a big way.
NFTs: The Future
NFTs are already considered the future of art investment. Non-Fungible Tokens (NFTs) are unique digital pieces that have revolutionized the way people buy and sell art. Benzinga explains, “When most people hear about NFTs for the first time they are inevitably confused. Even when they learn what the acronym stands for — non-fungible token — it doesn’t help much. But it’s quite simple as soon as you know what fungible means. Fungible describes anything that is mutually interchangeable, like a dollar bill or a bar of gold. Non-fungible simply means that something is unique and can’t be easily replaced with a similar thing or asset.
Examples of non-fungible items include houses, used cars and CryptoPunks. So a non-fungible token is just a unique, irreplaceable placeholder on a blockchain leading to a piece of art or a profile picture. Most of the top NFT collections are on the Ethereum blockchain, but competitors like Solana have quickly growing ecosystems, too.”
But do they make good investments? The answer seems to be: it depends. The NFT market can be remarkably volatile and some NFTs can end up being worth almost nothing. Others, on the other hand, can be worth millions. So a good working knowledge of the type of NFT market you’re getting into and a tolerance for risk is necessary – but NFTs can also bring a big payday.
Which is Better?
In a head-to-head, which wins: Legos or NFTs? The answer to this question depends mainly on your comfort with risk. NFTs are often a more risky investment, but that doesn’t make them a bad one. Lego sets such as The Millenium Falcon and other well-known collector’s set have generally a steadily growing value. Unless they find a warehouse full of collector’s sets that devalues your Lego investments, you can be relatively sure they’ll grow in value over time.
NFTs on the other hand have the potential to gain value rapidly – but also lose it.
The winner? For reliability: Legos. For potential value? NFTs.
There is no real decisive winner here, but there are also no losers. If you’re looking for an investment with a better return than gold – either is a good choice.