Best Toys to Collect for Investment in 2023

The post Best Toys to Collect for Investment in 2023 by Marc Guberti appeared first on Benzinga. Visit Benzinga to get more great content like this.

Investors aim to profit from various types of assets. While stocks and real estate receive a lot of attention, alternative investments can also generate long-term returns. Some toys command high valuations because of sticky demand and nostalgia. These products can gain value over time, like stocks and real estate, but their price movements do not correlate with stock market volatility. Investors looking for a different type of asset may want to consider these top toy categories.

Is Investing in Toys a Good Idea?

Investing in toys can be a good idea. When some of these toys first came out, they had large followings. Some of these same toys have a lot of nostalgic value, especially older toys where fewer people thought to collect them and sell them for a higher price in the future. That means fewer toys from the past are in top condition. Some people will pay top dollar for an old toy in mint condition.

Most toys are less expensive than buying your first rental property, especially if you make speculative investments in new toys. However, some toys end up becoming more valuable than properties. The industry has a lot of potential, depending on which toys and brands you explore.

Best Toys to Collect for Investment

Toy investors may want to search within some of these top categories.

1. Vintage Action Figures: A Treasure Trove of Value

Vintage action figures from popular brands like Star Wars, G.I. Joe, He-Man and Transformers have attracted multiple generations of fans. However, many of the original vintage action figures were purchased and taken out of their packaging, so they show signs of play. That leaves few mint-packaged iconic action figures available. Combine that with the short production runs some vintage action figures experienced, and investors can find promising opportunities. Vintage action figures in the 1970s can have high price points and stand to gain value since there is a limited and dwindling supply of them. Limited editions and variations have higher price points because of their scarcity.

2. Rare and Limited Edition Dolls

Some dolls are more valuable than others, especially rare and limited editions. Older dolls and commemorative releases can retain higher price points due to their limited supply. 

3. Valuable Board Games

Board games have been handed down for generations, and iconic board games have been around for decades. Some of these board games have unique themes that can increase the board game’s value. Limited editions and games with historical significance can also command higher prices.

Looking for some of the earlier editions of classic board games like Monopoly, Risk and Clue can also lead to good investment opportunities. It’s possible to sell the first edition of Monopoly for hundreds of dollars. Some Monopoly board games have sold for over $1,000, and the oldest version of the game sold for over $100,000.

4. Retro Video Games

Older video games combine nostalgia with rarity to generate long-term returns for investors. Few unopened retro video games remain, but if you can find one in mint condition, you may receive a good return on your investment. Retro video games from classic consoles like NES, SNES and Sega Genesis are collector’s items. Older versions of iconic Nintendo Games like Super Mario Bros. are some of the most valuable video games in history. 

5. Antique Tin Toys

Antique tin toys have a long history, and some of them date before the 20th century. These antiques are collectibles that attract investors, enthusiasts and collectors. Wind-up tin toys with specific mechanic intricacies and historical significance can bring high prices.

6. Comic Books

Comic books from popular franchises are a big hit among enthusiasts and collectors. A comic book featuring an iconic superhero’s debut can be expensive and present significant opportunities for investors. The comic book that featured Superman’s debut sold for over $5 million. Older comic books are likely to hold onto their value because of the multi-generational popularity of historically significant characters and the limited supply of mint debut comics.

7. Authentic LEGO Sets

LEGO has been creating bricks and sets since the 1930s. When a company impacts multiple generations and still produces great products, some of the older ones are bound to attract enthusiasts and collectors.  Older LEGO sets from discontinued themes can continue to appreciate in the long run. LEGO sets from popular brands like Star Wars and Harry Potter and sets of iconic landmarks tend to earn a higher valuation. Some retired LEGO sets sell for thousands of dollars.

8. Historical Model Trains: All Aboard the Investment Train

Historical model trains from the 20th century are popular among enthusiasts and collectors. An Old Lionel Train Set can be worth thousands of dollars. While you can get good money for a used train set, you can charge a higher price if the train set is unopened and in mint condition.

9. Sports Memorabilia

Jerseys, sports cards, in-game equipment and other sports memorabilia have a large fanbase. Some investors buy game-used jerseys and sports cards of athletes who seem destined for the Hall of Fame. Once an athlete makes the Hall of Fame, sports memorabilia associated with them tends to gain value over time. Some sports memorabilia sells for millions of dollars.

10. Movie and TV Props: Relive the Magic

Some people want to travel back in time with movie and TV props from their favorite shows. Original props can gain value over time, especially if the movie or TV show continues to attract fans. Movie and TV props draw many enthusiasts and collectors.

11. Historical Children’s Toys

Historical children’s toys retain their popularity as children from previous generations want to revisit their childhoods. The people who grew up with these toys now have more disposable income and may bid against each other on popular sets. Vintage wooden toys and tin soldiers that reflect cultural trends and societal changes can attract large returns.

How to Evaluate Toy Investment Potential

Investors can look at a corporation’s balance sheet to assess its stock, and real estate investors can look at metrics like net operating income. It’s not as straightforward to evaluate a toy investment’s potential, but you can use these factors to form an investment thesis. 

Brand and Popularity

A brand’s name can instantly lead to higher prices, similar to how Nike charges higher prices for its sneakers because of its brand recognition. A brand that maintains popularity across multiple generations can retain value. The previous generation now has more disposable income, and younger fans will soon have enough disposable income to build up their collections.

Condition and Rarity

A toy will get a higher valuation if it is in mint condition and comes from a rare set. Common toys have greater circulation, which makes it more difficult to maintain high prices. It’s easier to make a bigger profit if there are only 10 mint sets remaining versus 10 million mint sets remaining.

Historical Significance and Collectibility

Toys with historical significance and collectibility can get expensive in a hurry. High demand combined with low supply creates a winning formula for toy investors. Looking for limited-edition and vintage toys that hold nostalgic value for certain generations can generate long-term gains.

Market Demand and Trends

The demand for toys fluctuates as previous generations get older and new generations embrace the toy. Media exposure, consumer preferences and the release of related movies and TV shows can influence the popularity of toy brands. You can also look to see which toys get the highest returns and analyze the market to see which current toys match some of those characteristics. 

Packaging and Documentation

A toy is more valuable if it is still in its original packaging. These sets are more desirable to collectors and can appreciate at a faster rate than toys that have been opened. Opened toys in good condition can still gain value over time. Some toys require documentation that proves their authenticity.

Spreading Your Capital Across More Investments

Toys are an alternative investment that relies on brand recognition, fan nostalgia and low supply. These collectibles won’t generate passive income, but they can gain value over time and command high prices on sites like eBay and Amazon. Investing in more asset classes can minimize your risk and expose your portfolio to new opportunities.

Frequently Asked Questions

The post Best Toys to Collect for Investment in 2023 by Marc Guberti appeared first on Benzinga. Visit Benzinga to get more great content like this.