Investing in Vintage Toys: Is it Worth the Effort?

Stocks, bonds, and real estate are typically associated with sound investments. We bet you’ve never considered those aging toys gathering dust in your attic could be worth more than a few dollars.

Remember when your childhood was filled with countless hours playing with LEGO sets and G.I. Joe figurines? Thanks to your negotiating prowess, you’d swap Magnetic Dolls with the neighborhood kids and always got the bulk of the haul.

Nothing can replace that sense of nostalgia, but it’s that very sentimentality that vintage toy collectors are after. 

Hard to believe? According to HowStuffWorks, a vintage LEGO set recently sold for almost $900. Released in 2017, the LEGO Star Wars Ultimate Collector Series Millennium Falcon is considered the premium version of the Millennium Falcon. 

Look at it this way - toys are no longer just playthings. Increasingly, they're being seen as legitimate alternative assets, comparable to art or gold. So, is investing in vintage toys worth your time and money? Let’s take a closer look.

Why Vintage Toys Are Gaining Investment Value

Toy investment has been around for a few decades, and while many people scoff at the idea, the concept has paid dividends.

Phys.org cited a study published in the Research in International Business and Finance journal that found toys outpaced traditional investments like gold and art. It offered an average annual return of 11% - a pretty sweet payoff for something once meant for playtime.

The same study noted that prices for collectible toys surged due to limited supply and increasing nostalgia-driven demand. 

As Gen X and Millennial collectors seek to reclaim pieces of their childhood, they’re driving up prices for everything from Star Wars figures to LEGO sets.

Now Versus Then

Compared to this generation, yesteryear’s toys weren’t precisely childproof. Toy testing was in its infancy and vintage toys were often made from wood, metal, and fabric. Some even featured ivory and ceramics. 

Simple designs were built around functionality, from winding to clockwork to gravity. There was much less emphasis on electronic components than there is today. 

The toy industry is heavily regulated these days, says QIMA. CPSC’s Toy-Related Deaths and Injuries Report 2023 reveals that 154,700 children 12 years or younger were treated in ERs, and 10 children died in toy-related incidents.

Implementing a quality assurance program with regular testing and inspections ensures compliance with toy safety regulations. Product safety testing encompasses electrical safety, chemical testing, and quality testing.

Toy safety wasn’t a key consideration back then. Yet, you’d be hard-pressed to know an infamous 1950s toy went onto the auction block for $12,000 at the end of 2024.

Identified as one of “the 10 most dangerous toys of all time,” the Gilbert U-238 Atomic Energy Laboratory was manufactured with real radioactive components.

Tips for Vintage Toys Investment

Ready to dive into the toy investing world? Here are a few tips to get you started:

Pristine Condition Rules

Unopened toys in their original packaging, and mint condition will command the highest prices. Even a slight crease in the box can impact value.

Research the Market

Before dropping cash on a toy, understand the market. Use resources like eBay, Heritage Auctions, and collectible forums to compare prices and trends.

Nostalgia Always Wins

Vintage toy enthusiasts agree that it’s wise to invest in pieces you enjoy. That way, even if the item doesn’t appreciate as expected, you still have a piece you value.

Don’t be too Hasty

Like any investment, toys take time to appreciate. You’re not flipping for profit overnight - it could take years before a particular item hits its peak value.

Don’t be Fooled

The more valuable the toy, the more likely it is to be counterfeited. Always verify authenticity, especially for big-ticket items like Star Wars prototypes or rare Barbie dolls.

Cashing in on Nostalgia

Which toys are making bank? According to Nasdaq and Benzinga, here are a few standout collectibles.

First-edition Barbies from 1959 can sell for upwards of $25,000, especially if they’re in pristine condition with original packaging. Designer collaborations like Barbie x Versace have recently gained collector interest.

Original Star Wars toys from the 1970s and ‘80s are among the holy grails of toy investments and will always be a firm favorite. A rare, mint-condition Boba Fett prototype with a rocket-firing backpack fetched over $100,000 at auction. 

A 1969 Hot Wheels Pink Rear-Loading Volkswagen Beach Bomb, a prototype model, sold for $150,000. 

As you’ve noticed, condition and rarity are the main factors when investing in vintage toys. 

The psychological driver behind all of this is nostalgia. As Millennials and Gen Xers hit their prime earning years, many want to recapture a slice of childhood through collectibles.

Who knew cashing in on nostalgia could lead to dollar signs?