However, we also hear many tragedies about people losing their money to investments that they thought were stable. It is therefore difficult to know what is and isn’t a good investment. Collectibles have been a form of investment since the first comic books and action figures, in the modern-day, Hot Toys are the king of the collectible action figure and a lot of people have made good investments from buying these Hot Toys.
In this article, we explore the question of Hot Toys being a good investment and the reasoning behind it.
What are Hot Toys?
Hot Toys are brilliantly detailed and well-made collectible models and statues from various forms of media and movies with the majority of their figures being from franchises such as Star Wars, Marvel, and DC. They are extremely coveted in the collectible community and because of this, and the insane lifelikeness that the toys portray, they come with a hefty price tag.
On average, Hot Toys come in as one of the more expensive lines of collectibles but there are some good reasons behind this. There are many unique and alluring things about Hot Toys that make them so coveted, all Hot Toys are handmade, in one location, and not mass manufactured on an assembly line.
This means that each individual Hot Toy is of the utmost quality and houses extremely detailed and well-worked features. It also means that no two Hot Toys are the same adding to the individuality of the collectible.
Your investment in Hot Toys
If you’ve been interested in collectibles, statues, ⅙, ¼ scale, etc. you will already know by now that a certain price tag comes with such detailed figures as those that are available as Hot Toys.
It is very unlikely that you will be able to invest in a single Hot Toy for less than $100 with many Hot Toys being considerably more than that, most being in the range of a couple of hundred dollars, but you may even find yourself falling into the thousand dollar range.
Hot Toys are therefore quite an expensive investment, if you’ve got the money for Hot Toys you could go for investments such as stocks or cryptocurrency, so what makes Hot Toys more appealing to investors like yourself? The first, stand-out reason is the risk factor, there barely is one.
Hot Toys prices actually increase over time in almost all cases. This isn’t due to inflation either, this is an actual price increase relative to a number of important factors. These factors are;
Hot Toys are handmade
Every Hot Toy is made by hand, never by machine or 3D printer. This means that even though every Hot Toy is made to vigorous standards, no two Hot Toys are the same. This individuality means that all Hot Toys have some level of uniqueness and therefore can drive up the price even more.
Hot Toys are of a high quality
Hot Toys are made with quality in focus, just looking at them you can see how detailed and well-worked every Hot Toy is. This quality isn’t just surface deep however, Hot Toys will last you a long time without any of the detail diminishing. This means that their value rarely drops because of quality issues.
They take a long time to make and produce
Because of this high quality and the fact that every Hot Toy is made by hand, their production time is longer than most collectibles. A single Hot Toy can take anywhere from 3 months to a whole year to produce. This amount of effort and time means that only a small number of each Hot Toy can actually be produced, increasing their rarity and driving up the price.
They are always a limited production no matter the series
Each Hot Toy being put into production will only do so for a limited time, even if the series is very popular. This means that every Hot Toy is ensured to be out of production at some point. When Hot Toys stops the production of the figure, the selling price will increase as the numbers of that figure will be limited.
Production runs are rarely reproduced
It is only very rarely that a Hot Toy figure is ever put back into production, and even when it is, that production is sure to be limited as well. This means that your profit when the first production ends is likely to be instant, and even if a second production comes along, when that ends the price will still increase, so you’re safe in your profits.
They are made in one location and are never mass-manufactured
All Hot Toys are made in one Hong Kong production house and are never manufactured en masse. Meaning that the only toy that can be a Hot Toy are toys that are designed, developed, and manufactured in this specific production house. This increases their uniqueness and individuality, therefore, increasing their value.
All of these factors mean that Hot Toys are very likely to increase in value, usually from the moment that production on that Hot Toy stops. This means that, unlike cryptocurrency, stocks, or any other kind of investment, Hot Toys remains relatively risk-free as an investment but of course, not completely risk-free.
The Risks
The main risk when investing in Hot Toys is keeping the Hot Toy in a good enough condition to be able to sell on the secondary market for the highest price possible. There are a few helpful tips to keep your Hot Toys in the best condition possible for the longest period of time.
Keep out of direct sunlight – This is a no-brainer for any experienced collector, heat is the biggest enemy of clay-based and plastic toys, it can cause discoloration and yellowing in the fabric also. Direct sunlight also comes with harmful UV rays, Uv rays will cause your Hot Toys to fade over time.
Store in a cool, dry place – As well as the temperature causing discoloration, a humid room could eventually create mold on any fabric surface. Mold on small fabric surfaces such as capes and clothing for Hot Toys is not easily removed without having to damage the Toy itself.
Make sure your hands are clean – This is important. Oil from your hands can discolor or deteriorate your Hot Toys over time, that’s why before handling you should always wash your hands with soap and water. It is also useful to make sure your fingernails are properly trimmed. Trimmed fingernails are less likely to scratch the paint on the Hot Toy and are less likely to carry dirt.
Get to know your Hot Toy before handling – Many toys have opposable limbs and different extra parts. This is why it’s always important to watch a video or two on the details of your Hot Toy before exploring it yourself. This prevents any form of accidental damage that may occur from twisting an arm the wrong way or pushing an accessory on the wrong body part.
Another risk that is out of your control is the possibility that your figure will come back into production with a new updated version. However, this production will also be limited, so your Hot Toy should rise in price at the end of production.
The Rewards
After spending upwards of a couple of hundred dollars, and putting a lot of time and caution into keeping your Hot Toys in as good condition as you possibly can, then you’re going to want to know how much money you can make investing in Hot Toys.
The average return of investment (ROI) on Hot Toys is about 25%, which on the surface doesn’t seem too much but there are many Hot Toys that become popular for whatever reason, and their price skyrockets after production.
An example of this is the Iron Man Mark VI Hot Toy that was released in January 2018, its retail price was just shy of $400, but now they sell on eBay for around $1300. That’s $900 profit in just 3 years. Many Hot Toys have been known to sell for thousands, and some even sell for tens of thousands of dollars.
Different investments could make you more profit in shorter periods of time, however, it is hard to find an investment that has such a low risk to reward ratio as Hot Toys.
Where can I sell Hot Toys?
These days it is very easy to buy and sell due to online marketplaces. The best bet is always sites like eBay and Facebook Marketplace. On these sites, you can also see how much people have bought your specific Hot Toy for, meaning you can understand what the best price would be to list yours. You can also go to reliable, local comic book, collectible, and pawnshops, just make sure to do your research on pricing beforehand.
Hi, my name is Matt Roberts, and I have been a financial analyst and advisor for the past 7 years.
While my job is based within the money industry, in my spare time I enjoy looking into potential new investment opportunities. From cryptocurrencies, to purchasing vintage cars, everything has the potential to gain you money if you are wise and make the correct investment decisions.
Through this site, I hope to educate others on investing in general, and hope to provide others with useful information that can benefit them and the opportunities they have. If you are not confident with finances, investing money can be a daunting step, however, it is a lot easier than many people are led to believe.
