Misc.

Did the Pandemic Rekindle Model Train Interest for Another Generation?

The pandemic of 2020 and 2021 was a time of social distancing. It was also a time that people spent more time, or nearly all of their time, at home. Worries of an economic collapse and permanent unemployment receded after record government stimulus and support. The outcome led to a splurge of in-home entertainment and spending. This contributed to windfall for collectibles of all sorts. What about the American tradition and pastime of model trains and model railroading?

Collectors Dashboard evaluates collectibles as an alternative asset class. Some collectibles may only have appeal to hobbyists and may have no value in time. Other collectibles will have significant value in time. The interest in model trains has seen its share of ups and downs over time. And whether a hobby or an investment, buying model train sets can equate to a substantial investment of time and money.

Model train buyers should never expect to see these bought and sold as if they had their own stock quotes. That said, go visit a model shop. Go online. Go to one of the industry magazines. Or even go to a local train show. It is very easy to spend $5,000 or $10,000 on a model train set. For the highly detailed and customized sets, the sky is the limit on what you can spend.

Train shows are hosted around the country as weekend community center events. This will include licensed model train dealers, individuals who have accumulated collections, and some who inherited train sets from parents or grandparents, all congregating with collectors. The sellers rent tables to sell model trains and railroad collectibles. It’s the same as a sports collectibles convention, but the theme is about model trains and model railroading rather than sports collectibles.

There is much more to model trains and model railroading beyond train sets. Think about hats, t-shirts, antique train lanterns, original art or prints of trains scenes. There are also all sorts of pieces from trains, rail spikes and about anything else — even the so-called “date nails” that show when and where a tie was installed.

In 1995, the Santa Fe and Burlington Northern rail lines merged to form one company. That rail giant was ultimately purchased by Warren Buffett and the Berkshire Hathaway conglomerate. While this may be business history, there are specific interests in trains that can best be described by using the BNSF example. Some model railroaders create a personal train layout specific to the pre-1995 years as if that merger never happened.

To go further on the pre-BNSf example, someone who grew up in Fargo, North Dakota in 1990 may buy all things Burlington Northern but not Santa Fe. They may even pay thousands of dollars to recreate this world in a basement, garage, or even a dedicated room.

King’s Hobby in Austin, Texas has been a beloved central Texas model shop and model railroading hometown hobby shop since 1973. King’s Hobby has also been a presence at regional train shows. Speaking with King’s Marc and Amber, they described some of the difficulties during Covid lock-downs. Getting consignments was more difficult, and getting actual train products was not always an easy task. You probably heard about the semiconductor shortage, but the similarities of shortages went much wider. That included model trains and other aspects all involving supply chains and logistics.

Pricing a collection to buy and for resale might seem to be easier for everyone involved if its done in person. The reality is that model sales, like many other collectibles, saw a noticeable uptick on internet sales. Another aspect of pandemic-driven interest in model trains has been seen with higher per-ticket sale prices.

Talking with customers by phone during the lock-down, King’s Hobby also echoed the rising interest for in-home activities. Even as lock-downs ended, and as people began coming back to retail stores, Amber described people rediscovering the hobby, “I got this out when I was stuck at home and now I’m coming in to add to it and make it my own.”

The model train and model railroad industry is built around the wants of hobbyists. Many young train enthusiasts have been priced out of model locomotives that look just like the real thing, complete with sound and extreme detail with a starting price over $200.00. Again, that price can be significantly higher as well.

Even non-model train enthusiasts have heard of Lionel Trains. The company still exists, with model catalogs and all. Canada’s own Rapido based in Montreal with frequent video releases of new products. Others include:

  • Athearn, based in Long Beach, California;
  • Tangent Scale Models, based in Asheville, North Carolina;
  • Scale Trains based in Benton, Tennessee.

Athearn created a sound feature on a caboose model that includes realistic features like squealing brakes and flat spots on the wheels. Here is an independent video review of the model by a respected enthusiast in the hobby. The price and attention to detail are reflective of the modern model railroad industry standard.

What all of these companies have in common are loyal model train and model railroading customers who are willing to pay hundreds (or thousands) of dollars for realistic model trains and accessories.

Model train and model railroading is one of those family hobbies that has been multi-generational. Again, it has seen its ups and downs. While many of these trains and accessories are collectible heirlooms, they can also command high prices on eBay and elsewhere. Time will tell if those “investments” prove to be a store of value or entertainment value.

There are some rather famous celebrities and shows that keep interest in trains. Music legend Rod Stewart has been featured many times for his passion about model railways. There are also rail-rides hosting Thomas the Tank Engine for 2021 as “Day Out With Thomas The Train” Rides. Railway Traveller has also featured other celebrities who are known to be or rumored to be model train fans.

The pandemic did help to rekindle interest in the old train set that had been stored in the attic, basement or garage. There are also new faces who have started showing up to the train shows of all ages and demographics. That was seen firsthand at the Train Show held in April 2021 at the New Braunfels Civic/Convention Center, and another Train Show will be held at the New Braunfels (Texas) Railroad Museum on October 30-31, 2021.

Fox Business has also run the Strange Inheritance show, one of which was the million-dollar train set.

To further prove the point about high-priced items, eBay has many items that have sold in auctions in 2021 (outside of the ‘Buy It Now’ prices) for thousands of dollars:

  • May 23, 2021 — Rare 1965 Lionel 1254 Dealer Accessory Blister Pack Merchandiser Spinner Display for $8,876.29 after 13 bids, along with $118.50 for shipping.
  • May 8, 2021 — CHALLENGER IMPORTS PRR LIBERTY LIMITED HO BRASS 11-CAR SET listed as mint condition for $7,499.00 (after just 1 bid) with another $175.00 for shipping.
  • Apr 30, 2021 — WILLIAMS Amtrak Gen11 Genesis diesel with horn and original box and instruction sheet for $5,100.00 after 18 bids and with $22.90 shipping.

Categories: Misc.

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