Reissue discussion

[stackables]

I wanted to get some discussion/insight on what happens to sets that are reissued. What happens to the original set? When a set is reissued, is there less demand for the original set? I bring this up since most of us collect Star Wars sets and many of them are reissued. Either as a similar set or a complete overhaul. Sets like the Millennium Falcon or the more recent, Jabba's Palace, have been reissued. A close look at the original Jabba's Palace as showed a decline over the last couple of months. Is this a common trend? Thoughts?

[Ed Mack]

I wanted to get some discussion/insight on what happens to sets that are reissued. What happens to the original set? When a set is reissued, is there less demand for the original set? I bring this up since most of us collect Star Wars sets and many of them are reissued. Either as a similar set or a complete overhaul. Sets like the Millennium Falcon or the more recent, Jabba's Palace, have been reissued. A close look at the original Jabba's Palace as showed a decline over the last couple of months. Is this a common trend?

Thoughts?

Excellent question...It appears that there is a faction of LEGO fans and collectors that believe new sets reduce the value of older sets that are similar in nature. While there may be some truth to this, I think some LEGO investors are misinformed to what is actually happening to some retired sets, in particular, STAR WARS sets when newer versions are released.

Here's my take on this issue. Let's take a look at the retired 4480 Jabba's Palace that you mentioned to make my point. If you look at the data, you will see that the 4480 has indeed leveled off in value over the last several months. It seems to correlate with the release of the newer 9516 Jabba's Palace. The new set must really be taking the wind from the sails of the retired set, but is it?

If you really look at the 4480 and its data, these points stand out:

1. The set is almost 10 years old, maybe it has seen the maximum value it will reach...which truly does happen. LEGO sets do have ceilings.

2. The set has already APPRECIATED 520%. How much more can you expect from an investment over 10 years?

3. How much will an investor pay for a $30 set that had only 231 pieces? Especially when there is a fancy new remake?

The bottom line is that the 4480 Jabba's Palace was an ordinary set, with a cool minifigure(Jabba). Nothing else is remotely interesting with this set. To be honest, a 520% gain on this set is fantastic considering what you paid for at retail. There is only so much LEGO sets will appreciate and the older Jabba's Palace might have hit its ceiling. There is a curve that all LEGO sets make....sets are worth a certain amount at release, then get discounted around EOL, then the set appreciates rapidly, sets then level off and some even depreciate. There are very few LEGO sets that keep going up in a straight line. Those that do are usually the well designed and popular sets, that are interesting and have a good bang for your buck. If a LEGO set meets those standards, a new version will have no effect on its value. Just my 2 cents...

[stackables]

Good points. I took a look at the 4504 Falcon which has been out 7-8 years. It has an overall increase of around 50%. That seems pretty modest for a 8 year old set. This is also trending down since the release of the new one.

[Ed Mack]

Good points. I took a look at the 4504 Falcon which has been out 7-8 years. It has an overall increase of around 50%. That seems pretty modest for a 8 year old set. This is also trending down since the release of the new one.

Yes, there are plenty of sets that are investment losers. It goes to show that in order to make money with any investment, you have to pick the right vehicle to put your money into. If you spent $20 more on the 10134 UCS Y-Wing Fighter in the same year you would have yielded 327% instead of 48% of the 4504 Millennium Falcon. Pick the right set and you look like a financial genius. Nobody said it was easy. ;-)