Investing in Toys
When we become adults we put away childish things – unless we're shrewed investors, of course.
Toys can be a charming and fashionable alternative to stocks and shares (which to many people can seem dry or complicated), and they are available to small-time investors.
Rare and collectible items have in recent years been traded for astonishing prices. What seemed like juvenile tat in the 1950s and 1960s is now regarded as must-have assets that are aesthetically pleasing as well as providing some financial security.
Christie’s auction house, for instance, once sold a 1950s Machine Man robot by the tin toy company Masudaya for £29,900 - though the item was a rare one.
More common are classic Dinky, Hornby, Matchbox and Corgi toys, which adults of a certain age might be lucky enough to find in their attics. Failing that, you can often pick them up for a reasonable price at toy fairs and auctions – held either by online companies like eBay or auction houses such as Vectis in Stockton on Tees.
The tiny vehicles can often turn out to be very valuable, commanding several hundred pounds. Ones that cost a few pence 40 years ago may now be worth £500, and even some of the cars produced as recently as the 1980s are now worth four, ten or even 20 times their original price.
Pre-war Dinky models generate the greatest profits for their owners. Christie’s sold a HG Loose promotional delivery van for £4,600.
Stuffed toys and dolls can also be worthwhile investments – teddy bears in particular, and especially the ones by Germany’s Margarete Steiff. A black Steiff bear once fetched £91,970 at Christie’s.
There is also a growing market for plastic figures – from classic Barbie and Action Man, to early Star Wars characters – epecially if they are in their orginal packets.
Packaging is very important when investing in toys. For an item to accrue value it must not only be in mint condition but also come in its original container. Without the box or bubble pack, the toy will only ever reach about half of its potential value – even if it is in a perfect state (having never been played with).
This why collectors recommend paying a little extra for a top quality piece in its original packaging.
It is usually cheaper to buy toys from private collectors or specialist shops because auction houses charge buyers and sellers commission – though they also offer expertise that can be useful.
Vectis, for example, is the largest toy auction house in the world and has a massive database that allows it to check that all items are genuine and worth their asking price.
There are a lot of fakes around, and some pieces are often judged by laymen to be worth more than they are – such as anything intentionally produced as a ‘limited edition’.
No matter how you buy your toys, you must remember that when you eventually sell them, you will be liable for capital gains tax. (See the UK Net Guide feature on capital gains tax.) If you leave valuable toys in your will, they will be subject to inheritance tax. (See the UK Net Guide article on avoiding inheritance tax.)
You should be aware that toys are not regarded by financial experts as a sound method of investing because they can be a risky business. Fashion can be fickle, and what is in demand now may be unpopular in a few months’ time, meaning the value of your investment can go down as well as up.
