Why Art Investing Is NOT Just for Billionaires - Masterworks

Art is one of the oldest and most enduring forms of human expression. It can also be a lucrative and rewarding investment, if you know how to do it right. But many people think that art investing is only for the ultra-rich, who can afford to buy multimillion-dollar paintings and sculptures from famous artists. This is a common misconception that prevents many potential investors from exploring the opportunities in the art market.

In this post, we will show you why art investing is not just for billionaires, and how you can get started with Masterworks, a platform that lets you invest in fine art by artists like Basquiat, Picasso, Banksy, and more.

The Benefits of Art Investing

Art investing has many advantages over other types of investments, such as stocks, bonds, or real estate. Here are some of the benefits of art investing:

• Art is a tangible asset. Unlike digital or paper assets, art is a physical object that you can see, touch, and enjoy. Art can also have historical, cultural, or sentimental value that goes beyond its monetary worth.
• Art is a hedge against inflation. Art tends to retain or increase its value over time, regardless of the fluctuations in the economy or the currency. Art can also protect your wealth from political or social unrest, as it can be easily transported or stored in a safe location.
• Art is a diversifier. Art has a low correlation with other asset classes, meaning that it does not move in sync with them. This means that art can reduce the overall risk and volatility of your portfolio, and enhance your returns in the long run.
• Art is a passion. Art investing is not only about making money, but also about expressing your personal taste, style, and preferences. Art investing can also be a fun and exciting way to learn about different artists, genres, and movements, and to connect with other like-minded collectors and enthusiasts.

The Challenges of Art Investing

Despite its benefits, art investing also has some challenges that you need to be aware of before you dive in. Here are some of the challenges of art investing:

• Art is illiquid. Unlike stocks or bonds, which can be easily bought and sold on the market, art is not as easy to trade. Art transactions usually involve high fees, commissions, taxes, and insurance costs. Art also requires proper storage, maintenance, and security measures to preserve its condition and value.
• Art is subjective. Unlike other assets, which have objective measures of value, such as earnings, dividends, or cash flow, art value is largely determined by subjective factors, such as aesthetics, rarity, provenance, and popularity. Art value can also change over time due to shifts in taste, trends, or demand.
• Art is risky. Like any investment, art involves risk and uncertainty. Art value can fluctuate due to changes in the market conditions, supply and demand, or the reputation of the artist. Art can also be damaged, stolen, or forged, which can result in significant losses.

How Masterworks Can Help You Invest in Art

Given these challenges, how can you invest in art without breaking the bank or risking your savings? This is where Masterworks comes in.

Masterworks is an alternative investing platform that sells shares in works of fine art. Masterworks makes it relatively easy for investors to invest in contemporary artwork by famous artists at a fraction of the cost.

Here is how Masterworks works:

• Masterworks acquires artworks. Masterworks uses its expertise and network to source and purchase high-quality artworks by blue-chip artists (artists who have a proven track record of appreciation and demand) from galleries, auctions, or private collections.
• Masterworks files artworks with the SEC. Masterworks registers each artwork as a public offering with the Securities and Exchange Commission (SEC), which allows it to sell shares to qualified investors.
• Masterworks sells shares to investors. Masterworks offers shares of each artwork to investors on its platform for as low as $20 per share (depending on the artwork). Investors can browse through the available artworks and choose which ones they want to invest in based on their preferences and budget.
• Masterworks manages artworks. Masterworks takes care of all the aspects of owning and maintaining the artworks, such as storage, insurance, restoration, and marketing. Masterworks also provides investors with regular updates on the performance and valuation of their artworks.
• Masterworks sells artworks or facilitates secondary trading. Masterworks aims to sell each artwork within 3 to 10 years after acquisition (depending on the market conditions) and distribute the proceeds to the shareholders (after deducting fees and expenses). Alternatively, Masterworks also allows investors to trade their shares with other investors on its platform (subject to availability and demand).

Why You Should Try Masterworks

Masterworks is an innovative and accessible way to invest in fine art, which has historically outperformed the S&P 500 for the past 26 years. By investing in Masterworks, you can enjoy the following benefits:

• You can invest in art with a low minimum. You don’t need to be a billionaire to invest in art with Masterworks. You can start with as little as $20 per share (depending on the artwork) and build your own portfolio of artworks over time.
• You can invest in art with a low risk. You don’t need to worry about the hassles and costs of owning and managing art with Masterworks. Masterworks handles all the details for you and spreads the risk across multiple investors.
• You can invest in art with a high potential. You can access artworks by some of the most sought-after and appreciated artists in the world with Masterworks. Masterworks has a track record of delivering impressive returns to its investors, such as 32% for a Banksy painting, 39% for a George Condo painting, and 325% for a Simone Leigh sculpture.

How to Get Started with Masterworks

If you are interested in investing in art with Masterworks, here are the steps you need to follow:

• Sign up for Masterworks. You can sign up for Masterworks for free by visiting their website¹ or clicking here². You will need to provide some basic information, such as your name, email, phone number, and country of residence.
• Complete the verification process. You will need to verify your identity and eligibility as an investor by providing some documents, such as your ID, proof of address, and income or net worth statement. You will also need to answer some questions about your investment goals and experience.
• Browse and select artworks. You can browse through the available artworks on the Masterworks platform and learn more about each one, such as its artist, history, valuation, and offering details. You can also filter the artworks by category, price, or popularity.
• Buy shares of artworks. Once you find an artwork that you like, you can buy shares of it by entering the amount you want to invest and confirming your order. You will receive a confirmation email and a digital certificate of ownership for your shares.
• Track and trade your artworks. You can track the performance and valuation of your artworks on the Masterworks platform or app. You can also trade your shares with other investors on the platform (subject to availability and demand).

Conclusion

Art investing is not just for billionaires. It is a viable and valuable option for anyone who wants to diversify their portfolio, hedge against inflation, and express their passion.

Masterworks is a platform that makes art investing easy, affordable, and accessible for everyone. By investing in Masterworks, you can own shares of fine art by some of the most renowned and respected artists in the world.