Is Lego a better investment than gold?

Legos might be a better investment than gold
Legos might be a better investment than gold

You might want to think about making Lego part of your portfolio.

Sets of the popular children's toys have increased in value by 12 percent each year since 2012, while gold has only generated a 9.8 percent return for investors, according to The Telegraph.

These plastic building bricks aren't just for kids. The secondary market for Lego sets is booming, with 2014 models already selling online for 36 percent more than their original prices.

"The neat thing is that all sets are retired at some point, and several hundred are retired each year a movie run ends, a license expires or the Lego company wants to refresh its range," Ed Maciorowski, founder of, told The Telegraph. "That means anyone with a set at home — large or small, it doesn't matter — could have quite an investment on their hands if it's in good condition, as this stuff appreciates very well in value."

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Of course, Maciorowski noted that sets that have remained in their original box, in perfect condition, will fetch a much better price in the secondary market. However, even a used set can be worth hundreds of dollars.

The most popular resold Lego sets are "Star Wars" themed and account for 10 of the 20 most expensive sets on the market.

The Ultimate Collector's Millennium Falcon, which once retailed for around $500 in 2007 is now worth more than $4,000. Similarly, the Death Star II and Imperial Star Destroyer sets from the early '00s can be purchased for close to $1,500.

Some sets have increased in value by more than 2,000 percent. A Cafe Corner brick building set from 2007 jumped to more than $3,000 from around $100 in less than a decade.

"The returns from Lego look pretty awesome, but investors need to beware that the value of collectibles can be vulnerable to fads," Laith Khalaf, an analyst at Hargreaves Lansdown, told The Telegraph.

"There's absolutely no harm in buying some pieces as a hobby, and you may well make some money, but as a main building block for your retirement, I would suggest sticking to more traditional shares and bonds."

Read the full article from The Telegraph.