Kids have forever enjoyed toys with which to play and dream. More recently, though, certain toys have gone beyond their original purpose and are now highly sought-after collectibles and even investment opportunities. Toy investing, the purchase of toys with the expectation that their value will appreciate over time and offer nostalgic pleasure and even financial reward, has thereby become more popular.
Learning about toy investing
Toy investment works the same as regular investment, where one attempts to buy assets that appreciate over time. Toy collectibles, including art, coins, or antique vehicles, are substitute investments, diversifying the portfolio beyond stocks and bonds. The value of such toys significantly depends on factors like rarity, condition, cultural value, and demand.
Most influential factors impacting toy value
- Rarity and limited editions
Scarce or limited-production items are more valuable. Firms typically create limited-edition items to render them scarce, thereby making their demand by collectors greater. Funko Pop characters, for instance, have exclusive releases during conventions such as Comic-Con, and they become in demand on the secondary market.
- Condition and packaging
Its value relies mostly on the condition of the toy. Those that are in mint condition, especially still in their packaging, command higher prices. Mint condition toys, in new condition without wear and tear and with original packaging complete, command a premium price from collectors. A limited edition Jellycat Bashful Bunny Silver Birch small size, for example, was auctioned for £420 on eBay, after a heated bidding battle due to its mint condition.
- Nostalgia and pop culture impact
Mainstream franchise-branded toys or the products nostalgically aligned could double in their worth. Products associated with such vintage series as Star Wars,. Marvel, or vintage computer games will typically go through scrutiny from collectors and even investors, leading to their price increase in the market. The recent fad with Pokémon cards, for instance, has witnessed such cards significantly appreciated in the recent past.
- Market demand
The investment value of a toy to the collector market is extremely high in its potential as an investment vehicle. Trends will tend to shift with cultural events, media announcements, or periods of interest and make whatever toys tend to increase in value. Staying current with current trends in the market is crucial to investors wishing to capitalize on such trends.
Top toys to invest in
- LEGO sets
LEGO sets, particularly those that are limited edition or franchise-based, increase in value over time. An example would be the Carrie Fisher “Princess Leia” doll for $3,520 in 2017. The value of LEGO sets is primarily established on their rarity, their condition, and popularity of the theme.
- Hot wheels cars
Since they were first produced in 1968, Hot Wheels cars have also been favorites of collectors. Special editions, especially those from the original production era, can sell for a tidy sum. Values of these tiny cars tend to fluctuate depending on the level of rarity, condition, and model of vehicle. Car collecting and investing in Hot Wheels cars can be a good investment for car buffs and collectors.
- Barbie Dolls
Barbie dolls have been a benchmark in the toy industry since 1959 and are now precious collector’s pieces over the years. Old and rare Barbies, especially those that are still in their boxes or in mint condition, are very costly. An example is that a #1 Ponytail blond Barbie in the original box from 1959 in 2006 sold for $27,450. The values of Barbie dolls typically depend on their condition, rarity, and historical significance.
- Star Wars action figures
The Star Wars series has produced some of the most coveted collector’s pieces in the world of toys. First issue action figures can acquire mind-boggling value as the years pass, like the first issue Luke Skywalker action figure produced in 1978. The action figure is now for sale throughout online retailers for over $17,000.
- G.I. Joe action figures
G.I. Joe toys have been worth collecting since their introduction in the 1960s. The older ones, especially those that are in perfect condition, are worth a great deal. G.I. Joe toys are generally most valuable according to how limited they are, their condition, and their classification.
New trends in toy collecting
Toy collecting is never static and is always changing, with new products and trends emerging to the forefront. A good illustration would be how Jellycat plush toys have become popular. The plush toys are extremely sought after, with some of the limited editions selling for a small fortune. As an example, a small-sized Bunny Silver Birch from the Jellycat sold on eBay for £420 following a hot bidding war because it was in mint condition.
Considerations and risks
Though investing in toys is profitable, caution is required:
- Market volatility: Trends, the economy, and changes in consumer demand could cause the collectible price to fluctuate.
- Authenticity issues: Counterfeits will mislead investors and devalue original collectibles. Authenticity proof is imperative.
- Storage and conservation: Care of toy conditions is necessary and involves safe storage to prevent damage, which is time and cost-intensive.
