From Pokémon cards to NFTs and now Labubu figurines, collectables are having a moment.

But as prices soar and hype builds, NAB is encouraging younger investors to ask a simple question: is this a smart place to put your money?

Labubu dolls, the quirky vinyl characters created by Hong Kong artist Kasing Lung, have become the latest must-have item.

Some rare editions are fetching thousands on resale and one four-foot-tall Labubu recently sold for $230,000 AUD at a Beijing auction.

But NAB’s Director of Investor Behaviour Gemma Dale says collectables should be approached with caution.

“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.”

The psychology behind the craze 

According to Ms Dale, the Labubu trend taps into several powerful behavioural triggers:

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.

“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.”

What to invest in instead 

NAB data shows Gen Z are already savvy investors when it comes to trading and wealth building.

Exchange Traded Funds (ETFs) have become popular among younger generations, with at least 40% of Gen Z and 34% of Millennials owning 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 support smarter money choices, NAB has launched a new budgeting feature in its app that automatically categorises spending so users can track 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.”

ENDS 
 
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