COMMENT
Investments You Can Play With

By David Kuo (TMFDragon)
December 3, 2004

If you thought toys were just for children, think again -- grown-ups are keen on playthings too. In the case of adults, though, it is the potential re-sale value of toys that tends to get them rummaging through toy boxes.

Fascinatingly, the re-sale value of old toys can be quite impressive and this has tempted many to consider toys as an alternative investment. For example, a die-cast Dinky lorry that sold for less than £1 in 1950 fetched £12,000 earlier this year. That equates to a compound annual return of 20%, which has been much better than shares.

As well as Dinky toys, which started life in 1933, some Corgi and Matchbox toys can also be lucrative. These latter two brands were much later arrivals into the model car market - they made their debuts in 1956 and 1947 respectively. It is estimated that a Corgi James Bond car that originally retailed for just 25p could be worth as much as £800 today.

There is also considerable interest in old teddy bears. In 1993, "Elliot", a rare blue Steiff teddy bear, fetched £49,500 at auction. A year later, "Teddy Girl", a cinnamon Steiff teddy bear was sold at Christie's to a Japanese buyer for £110,000 -- a record price for a teddy bear!

The high price offered for toys has naturally encouraged some consumers to consider modern-day toys as potential investments. However, trying to second-guess which, if any, of today's playthings will be tomorrow's gems is not that easy. There are no hard-and-fast rules to guide potential investors simply because the toy market is very unpredictable.

Some have even suggested that Beanie Babies, which are made by Ty, could be the winners of tomorrow. Whilst that might seem laughable, the growing market for vintage Barbie dolls could suggest otherwise.

However, the only true test of whether a toy will appreciated in value is time. Experts reckon that you may have to wait thirty years or more before you will know whether your hunch is correct! During that time, though, those toys will need to be stored in their original packaging and remain in mint condition.

That said, there are quicker ways to enter the collectable toy market, namely through auctions, toy fairs and car-boot sales. Online auction site eBay can be another good port of call, and Vectis is another popular destination for collectors. Vectis, the largest toy auction site in the world, said it recently sold a Gothic dolls house for £1,030!

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