Collectable items such as Pokémon cards, NFTs, and most recently Labubu figurines are attracting significant attention from young consumers. However, the National Australia Bank (NAB) is urging younger investors to carefully consider whether these collectables are a sound financial investment.
Labubu dolls, designed by Hong Kong artist Kasing Lung, have become highly sought after. Some rare editions have sold for thousands of dollars on resale markets, and a four-foot-tall Labubu was auctioned in Beijing for $230,000 AUD.
Gemma Dale, NAB’s Director of Investor Behaviour, advises caution when it comes to collectables. “Collectables can be a fun, nostalgic vibe – but they’re not investments in the traditional sense,” Ms Dale said. “They don’t generate income, they’re hard to value and they’re often driven by hype, scarcity and emotion rather than fundamentals.”
Dale outlined several psychological factors driving the popularity of items like Labubu dolls: “Lipstick Effect: In uncertain times, people indulge in small luxuries to feel good. Herd Mentality: When everyone’s buying, it feels safer to join in. Fear of Missing Out (FOMO): Limited drops and viral hype create urgency. Perceived Scarcity: Rare editions drive up demand and resale prices. Premium Positioning: High price tags signal exclusivity and status.”
She added that this pattern has been observed with other trends as well: “We’ve seen this before with NFTs, sneakers and even Beanie Babies,” Ms Dale said. “The pattern is usually the same – prices spike, then dip when the hype fades. If you’re buying for love, that’s cool. But don’t confuse it with a long-term wealth strategy.”
NAB data indicates that Gen Z investors are already participating actively in more traditional forms of investing such as Exchange Traded Funds (ETFs). At least 40% of Gen Z and 34% of Millennials own at least one ETF.
“We’re seeing young Australians take investing and budgeting seriously and that’s encouraging,” Ms Dale said. “If you’re looking to grow wealth, consider diversified investments like ETFs, which you can buy on the ASX with as little as $1000 using a platform like nabtrade – these offer exposure to assets and long-term growth potential.”
To help customers manage their finances better, NAB has introduced a new budgeting feature in its app that categorises spending automatically so users can monitor habits and set savings goals.
“The budgeting tool helps people see where their money’s going and whether it aligns with their values,” Ms Dale said. “It’s not about guilt – it’s about clarity.”