It wasn’t long ago that speculation in pop culture collectibles became common. Fueled in part by easy money being handed out by the government and the fact that almost everyone was stuck indoors, both the internet and nostalgia became an escape. Companies that either catered to the online buying and selling of modern-era mass-produced collectibles, or the collectible manufacturers themselves, did well during these boom times. While shortage and supply chain issues were expected, most producers of modern mass-produced collectibles tried to find ways to keep up with consumer demand. Companies like Nintendo, Lego, Pokemon, Hasbro, and Funko Pop made a lot of money during this period. Some of these companies handled inventory allocations much better than others, and even with known shortages, the secondary market for a lot of these products surged.
Through it all, I cautioned a lot of collectors and starry-eyed speculators that this was a statistical anomaly, nothing more than a black swan event that would not last. Some agreed, but others did not and went all in paying extremely high prices for not only modern-era mass-produced collectibles, but also vintage collectibles. As a result, once the pandemic ended, most of these high prices fell hard. Even the vintage higher end comic book market was not immune, with prices correcting anywhere from 10 to 40 percent on a lot of major key issues. It was also during this time that the great graded video game speculative bubble that was allegedly propped up by certain grading companies and auction houses started to deflate. This sent a shockwave through the market, with some longtime collectors heading towards the exit. I firmly believe that the period of the pandemic will be looked at and studied by both historians and economists for decades to come. I also believe that certain pop culture collectibles that hit new price records during this time will most likely never achieve some of those same price points in the near future (sorry, graded video game collectors).
All that said, there is one interesting development here. I actually thought that a lot of the modern-day collectible manufacturers would have done a better job of managing their inventory levels and realizing that most of this buying frenzy was nothing more than speculative euphoria. One such collectibles manufacturer that ended up in deep trouble as a result of not doing this was none other than Funko, makers of the incredibly popular, yet ugly Funko Pop line of vinyl figures. If you don’t know what a Funko Pop is, you would be forgiven. The product line is reminiscent of either Beanie Babies or PEZ dispensers, so choose your comparable poison carefully. Funko Pop enthusiasts collect, buy, and speculate on these deformed vinyl figures made from the toxic chemical vinyl chloride (true fact, look it up) based on popular pop culture franchises. There are Funko Pop figures based on “Star Wars” characters, Disney characters, comic book characters, “Pokemon” characters, and even short-lived television series. I often refer to the craze simply as Beanie Babies 2.0 for a generation that does not understand the simple concept of mass-produced scarcity. And speaking of mass-produced scarcity, the company that makes these deformed little creatures does a great job of limiting production on certain figures and retiring others (ah yes, where have we heard the term “retire” before? Yes, Beanie Babies). This has set off a speculator craze bigger than the entire Beanie Baby market during its heyday.
Unfortunately, most Funko Pop enthusiasts are on the younger side and do not see the proverbial writing on the wall. They argue that since these products are based on other pop culture franchises, they will always be sought after by those collectors. Unfortunately, I personally know of no vintage “Star Wars” toy collector who wants to add Funko Pops to their collection. This was the same argument used by PEZ enthusiasts back in the 1990s. Today, we know the truth. The PEZ market has been in a near downward spiral for many years, and even vintage dispensers are selling for similar prices and sometimes less than what they sold for during their peak in the 1990s. If you want to learn about the PEZ speculative bubble and have a subscription to Netflix, I recommend you watch the fascinating documentary called “The PEZ Outlaw.”
So what does this have to do with Funko Pops, you may be wondering. In the beginning of March 2023, it was announced that Funko, the company that makes Funko Pop figurines, would be sending over $30 million worth of stale unsold inventory to the landfill. The company that makes these products is a publicly traded company and announced the decision in a disclosure to investors. Wall Street, of course, reacted negatively to the news, while almost every major media outlet ran with the story (simply do an internet search of Funko and landfill, and you will see what I mean). Sadly, and as expected, this did not deter the starry-eyed speculators from defending this strategy. These speculators see this as a rough patch before their limited edition “Star Wars” variant Funko Pop can accelerate to new heights on the secondary market. Welcome to Beanie Babies 2.0. And if you find that too dramatic, how about PEZ 2.0? Either way, we all know how this ends. Will some of these Funko Pops hold their value and potentially increase on the secondary market? It sure is possible, as certain Beanie Babies still command a premium on internet auction sites. That said, instead of speculating in deformed vinyl figurines that were never removed from their original box to preserve their market value and condition, how about getting an S&P 500 index fund instead, or at least some vintage “Star Wars” figures that we know are scarce and already valuable? Nah, I guess that just isn’t as fun? Until next time.

Shawn Surmick has been an avid collector since the age of 12. He currently resides in his hometown of Boyertown, Pa., and is a passionate collector of antiques and collectibles. His articles focus on various topics affecting the marketplace.