Investments are usually made through assets such as equities and real estate. However, there are many other types of investments available, including art. The problem with these other investments is the lack of access. With the proliferation of new investment platforms, investing today is easier than ever before. This is also true for artwork, and Masterworks is a relatively new platform dedicated to artwork that is open to all investors. If you are interested in investing in art of all kinds, Masterworks may be the platform for you.
Access to investment artworks
Open to accredited and non-accredited investors
1.5% annual management fee
Masterworks also takes a 20% profit on sales
Masterworks buys paintings and then offers shares to investors
Average holding period 3-10 years
Access to secondary market for faster liquidation
Platform targets 9-15% historical appreciationMasterworks is a new art investment platform. The company was founded in 2017 and is based in New York City. The company’s team has over 75 years of art collecting experience and has created a company worth over $1 billion.
The process of investing money in the stock market is relatively straightforward. Especially in recent years, with the advent of many investment platforms such as Robinhood or Webull, investing today is easier than ever. Indeed, the same can be said for investing in real estate using platforms such as Fundrise or Crowdfunding. In contrast, this is not the case for art.
In order to invest in art, an individual usually has to buy a work directly. Today, however, there is a new solution. Masterworks is a platform that aims to offer anyone the opportunity to invest in artworks.
"Masterworks is the first stock trading platform to represent an iconic art investment. Build a diversified portfolio of iconic artworks curated by our industry-leading research team." Since its launch, Masterworks has achieved impressive results, thereby attracting over 160,000 member registrations. The company has purchased over $150 million worth of iconic artworks.
Art can provide an interesting diversification opportunity for investors. Contemporary art has appreciated by 14.0% since 1995, compared to an annualised return of 9.5% for the Standard & Poor’s 500 Index over the same period. In addition, art has a low correlation to the stock market and continues to appreciate even during periods of market decline.
However, it is important to note that art can be fickle. Just as it can appreciate in value, it can also depreciate in value. Investing in art requires an understanding of popular artists and styles. Just like any other investment, it is important to understand where the momentum lies.
Art is also illiquid, as it needs to be sold to generate income. Furthermore, an artwork will not generate income or create value over time, so the only way to make money through art is through the appreciation and eventual sale of the asset.
How to get started
In order to get started, you will need to request access through their online application. This application starts with a simple online form, but does have a short phone call later in the process. They currently have a waiting list of investors seeking membership, so if you are interested it is best to apply for an invitation to the platform as early as possible. On the website Masterworks explains that any questions about registration or the process can be answered by emailing their customer support email at [email protected].
