How LEGO went from toy to collectable investment

Whether your LEGO sets are gathering dust on a shelf or still sealed in their original packaging, it’s worth thinking about how to protect them.

A study released in 2021 found that LEGO had appreciated at a faster rate than stocks, bonds and even gold over close to a 30 year period. So how did a children’s toy become a serious collectable — and, for some, an alternative investment?

The LEGO story began in Denmark in the 1930s, when carpenter Ole Kirk Kristiansen was forced to rethink his business during the economic downturn. With carpentry work slowing, he turned to making wooden toys instead.

In 1935, he renamed the business LEGO, inspired by the Danish phrase leg godt, meaning “play well”. What started as a small toy business would eventually grow into one of the world’s most recognisable brands.

LEGO’s early success came from its ability to adapt. In the 1940s, the company moved from wooden toys to plastic products, including the first versions of the bricks we know today. Over time, LEGO expanded its range to appeal to different audiences and interests.

As popular film and TV franchises grew, so did demand for themed LEGO sets and minifigures. Sets inspired by Star Wars, Harry Potter and Marvel helped LEGO move beyond childhood play and into the world of adult collectables.

According to the study referenced above, LEGO appreciated by 11% a year from 1987 to 2015. So what drives that value?

1. Large, complex sets
   Some of the biggest LEGO sets contain more than 10,000 pieces. These sets often attract strong interest because they take time, skill and patience to build.
   
   
2. Limited availability
   LEGO regularly retires sets after a few years. Once a set is discontinued, supply becomes limited — and that can help drive up second-hand prices over time.
   
   
3. Collectability
   Rare sets, special editions and franchise-based releases can become highly sought after, especially if they are unopened or in excellent condition.
   
   
4. Nostalgia and adult demand
   For many buyers, LEGO is no longer just a toy. It’s a hobby, a display piece and, in some cases, a collectable asset.

If your LEGO collection has real value to you, it may also have value to someone else.

That’s why it’s important to understand what your collection is worth and whether you could replace it if it were lost, stolen or damaged.

Useful tools such as Brick Economy and Brick Owl can help you:

• track the value of sets and Minifigures
• check second-hand market prices
• monitor trends in collectable LEGO
   

But online estimates are only part of the picture. A professional valuation can help ensure your collection is insured for the correct amount and reduce the risk of underinsurance.

For New Zealand collectors, that matters whether your LEGO is:

• a long-term hobby collection
• a sealed investment piece
• a rare set with sentimental and financial value

If you own valuable collectables, it’s worth checking whether your home contents insurance provides enough cover. Specialist cover can help insure items that may be difficult to replace, especially where the market value has increased over time.

Chubb’s valuable articles cover under the Masterpiece policy is designed for special collections and can help clients insure items that sit outside standard household contents cover.