Scarcity, status and $230k dolls: the economics of collectibles, explained

Marina Gainulina
03:00pm December 04 2025

“History never repeats itself, but man always does,” wrote Voltaire in the 18th century. He wasn’t talking about Pokémon cards, but he could have been. 

 

It seems that in consumerism, every generation finds its own obsession - from Beanie Babies in the ’90s to NFTs in the 2020s - proving the allure of collectibles is a story as old as capitalism itself.

 

A 1984 Journal of Cultural Economics article noted that collectibles became a hedge against eroding savings, and in the late 1970s, high inflation pushed investors to seek refuge in tangible goods. 

 

Four decades later, the pattern persists. In uncertain times, people turn to “emotional assets” - objects that promise nostalgia, status and, with any luck, profit.
 

What’s hot in the collectibles world right now?
 

Labubu dolls - demonically cute vinyl figures by Hong Kong artist Kasing Lung - are the latest obsession. Rare editions fetch thousands on resale, and one 131cm Labubu sold for $230,000 AUD at a Beijing auction. Pokémon cards, sneakers and for the highest tax bracket, luxury handbags like Birkins remain strong players in the collectible economy.
 

Why are we obsessed? Economics + psychology 
 

Behavioural economics explains the hype:

 

  • Scarcity: Limited availability increases perceived value and urgency

  • Nostalgia: Emotional connection to past experiences or cultural memories

  • Identity and self-expression: Collecting reflects personal taste and uniqueness

  • Social status and community: Collectibles can signal prestige and foster belonging

  • Reward loops: Dopamine hits, especially from the hunt and gather process

  • Endowment effect: Our tendency to overvalue (and justify) items once we own them

     

Are collectibles a smart investment?

 

It's all fun and games, although it’s important to remember that collectibles are volatile and illiquid (in that they can’t easily be converted back into cash). They’re also objects that lack both productive use and productive costs, because they rely entirely on a resale market. 

 

The returns on collectibles can swing wildly. A Picasso will always fetch millions, but that limited-edition Pokémon card that you treasured as a kid? It might only be valuable to you. 

 

While art, stamps and violins delivered positive returns over the 20th century - and even as recently as two weeks ago, where a Klimt portrait sold at a Sotheby’s auction for a record-breaking price of $236.4 million USD - most modern fads don’t. 

 

Labubu prices, for example, fell 50% by September this year.

 

If wealth-building is your goal, diversified investments like ETFs on the ASX using a platform like Westpac Share Trading are safer bets. 

 

Collectibles go beyond money, pulling at identity, nostalgia and belonging. Communities form around shared passions, whether in auction houses or Discord servers. 

 

For some, that emotional utility - the joy of owning something rare - is priceless, even if the resale value isn’t.

Marina Gainulina

Marina Gainulina is a Content Producer for Westpac Wire, with ten years of experience in marketing communications. She holds a Bachelor of Communications & Media (Journalism) degree and a drive to connect with discerning audiences via authentic storytelling across mediums. She has managed editorial and brand comms for the likes of Tiffany & Co., Hugo Boss, NIVEA and GRAZIA.

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