The way people collect trains has changed substantially over the past couple of decades. Back in the booming 80's and 90's many people purchased trains not only for the love of the hobby, but just to sack away and never play with.

Back then, electric trains were booming as far as value goes. They went from very undervalued to very overvalued in a matter of just a couple of years. It used to be that dealers actually put new stock back because they knew a year from then, the trains would be worth more.

It is amazing how things change over the years.

Since the mid 1990's the value of trains have decreased in some cases substantially. One of the best examples I can give you is the beautiful 8307 Southern Pacific 4-8-4 that was made by Lionel in 1983. In my opinion this engine is one of the most beautiful engines anyone has ever made. The paint scheme is gorgeous, and when it was manufactured, there had been nothing like it. Demand for this engine back in the mid to late eighties was extremely high. Literally they weren't available.

The 1989 TM book prices this engine at $2000.00, and I know back then they actually sold in many cases for more. Today this engine books for $1050.00 according to the 2001 Greenburg Guide. I can tell you for certain that estimate is high in today's market because the last new 8307 that I owned sold for $699.00, and I owned it for over 5 months before it sold. [Ironically I just placed an 8307 on choochooauctions.com a couple of days after writing this. Click here to see a picture of this beautiful engine.]

Prices have been affected in most areas of collectible trains, even Lionel post war and pre-war (although not nearly as extreme as the 8307). I think there are two main reasons for the train depression of the late 1990's, and those are the fact that prices got way to high in the first place, and that manufactures are producing way to many new trains now in trying to make some big bucks. I can't blame them for that, but they are definitely affecting the secondary market.

It is even affecting the re-sale prices of newly released trains, as they are making so many each year, that they are eroding any demand for trains after the initial sale. Yes, unfortunately the good old days of dealers holding back trains to realize a bigger profit later are all but gone.

But this does not mean the sky is falling, as a matter of fact today's prices in my opinion for say pre-1995 new and unused Lionel MPC are bargains.

The fact that prices have fallen at least for 1970 and up Lionel trains over the past 8 or 9 years has indeed scared many people away from our hobby. It was a dismal outlook for this market for quite awhile. However I think prices are absolute bargains now, and I have seen many new faces, and people coming back for this reason. However I think collecting to make money is back for the hobby. Collecting for fun and enjoyment are what this hobby is about.

Train collecting has changed in other ways as well. Now you see many more operators, and less collectors. I find this amazing, as before many collecors put their trains away in storage or on display, but never ran most of their collection. Now, I think from talking with customers, there are many more people who are operator/collectors instead of simply collecting trains.

And why not? There is so much to choose from, and with prices being bargains again, who cares if it is run or not.

Now I'm from the old school. I still collect mainly post war trains in as high of condition as I can find. Originally I set aside trains for investment, but obviously now I collect only for the love of collecting. I don't run them, nor even show them. They are locked away in their original boxes. Click here and see my modest, but high grade train collection.

Everyone collects trains for different reasons. I love them, and I guess just pride of ownership is enough for me. This may stem from the fact that we couldn't afford much when I was young, now the fact that I can is great. Hey, I own a beautiful 773 engine and tender from my birth date. What could be better than that!

And the market is continually changing. Supply and demand always dictate value. However I don't think that as the boomers and pre-boomers die off, trains will become less and less popular and decrease in value. I think there will always be a market for electric trains just for the fact that they are so awesome. Who doesn't like watching an electric train go around the track? There are many pieces that are rare. I don't think that society will abandon something that is rare and antiquish at any point unless possibly some substantial event in the world happens that so effects the economy or changes lifestyles greatly. Of course if something ‘big' happens, everything will change as well.

Very little is predictable in our lives. But I would not be surprised in the next 50 years to see interest in electric trains gaining a resounding resurrection maybe even back to those golden years which happened a decade or so ago. I find myself sounding as if we are in a train depression now, but that isn't the case at all. The train market is alive and doing just fine today. I was comparing it to the roaring 80's I guess.

My whole point in this article is that trains are toys. They were toys when they were made back in the 30's, 40's, and 50's, and they are toys now. Unfortunately they have become very expensive toys now.

But if you enjoy something, don't you dare mix the enjoyment of adding to your collection with the thought that someday you will realize a huge profit from it. That is what the stock market is for. When you buy those trains, buy them to have fun, enjoyment, and pride of ownership. If when it comes time to sell you make a handsome profit, then that is icing on the cake. If you loose money when you sell them, then consider that payment for all that fun and enjoyment you had with them all those years! Collect and operate what you enjoy, and be happy that we live in a world where our forefathers were able to invent trains so that we can play with the little ones!!

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Revised 08/13/01