I love investing in lots of weird and interesting things and I'm always on the lookout for new experiments. I recently came across a product called Masterworks and thought I would share with you.
So can you really make money investing art? Read on to find out more.
What is Masterworks
Masterworks makes investing in fine art accessible to almost anyone. Traditionally investing in fine art has been limited to rich and famous. Not only does it require a huge amount of knowledge to know what's valuable and what's not, it also requires a large amount of capital. And even if you did manage to acquire a piece of valuable art at a good price, you'd then need to worry about insurance, storage, security etc. So in terms of investing, art is obviously more complex than most.
Masterworks changes things. They do all the hard work. Their art experts identify potential pieces and then purchase them. Then users can purchase shares in the piece of art. Eventually Masterworks plans to introduce a trading platform to enable shares to be traded. This would make this investment quite liquid.
Will Art Make you rich?
According to one market report, art works that are worth over $1 million, have increased in value by 27% year on year since 2007. Obviously that's quite a return. Will the paintings that masterworks manage to acquire increase in value this much? Will this type of bull run continue? No idea. There are lots of risks. It will be interesting to see how this plays out.
Am I investing in Masterworks
Not yet. I'm waiting to see how things work out. This is an entirely new concept. It hasn't been done like this before. They are currently letting people reserve shares in their first purchase an Andy Warhol. Once masterworks has a few paintings and a marketplace for shares, I will jump in.
Let me know in the comments what you think of this concept. Would you invest in Masterworks?