
I’m very interested in this platform, however I’m curious about a couple more things:
Nevertheless, when Masterworks sells an artwork, your expected profit could be pretty high. The main downside here (which I’ll explore further in the “fees” section of this article) is that Masterworks charges pretty hefty fees (similar to a hedge fund) where they take 20% of any profits upfront on top of your annual fee.
Sale – Artwork is sold and you receive profits proportionate to the shares you ownĪs you can see, there are many steps involved with owning fine art, and Masterworks really does the grunt work for you.
Holding Period – Average holding period lasts between 3 to 10 years.Storage – Artwork is held and insured at a secure location.
Invest – Investors are now allowed to invest in the artwork. SEC Approval – Artwork is qualified with the SEC. Buy – Purchase the highest return potential artwork with the lowest price. Analyze – Determine the most profitable artists. Here’s an outline of how Masterworks actually works: Masterworks gives everyone the chance to buy fine art by allowing virtually anyone to invest in shares of blue-chip artwork.Īll you do is invest your money and wait for a paycheck in the mail that’s hopefully bigger than the amount you invested. Fees – Unfortunately, the fees do tend to be quite high (read more in the “Fees” section), at least when compared to investing in low-cost index funds, for example. The secondary market offers some liquidity but not as much as the regular stock market Liquidity – While you cannot simply press a button and “sell” your invested shares as you could in the stock market, you can go to Masterworks’ secondary market. Customer Service – Very friendly, very responsive, and you can simply call the customer service phone number and talk to an actual human!. Projected Profits – Art investments historically have not correlated with the stock market and that’s a good thing, especially with rising inflation and the market volatility. Usability – The platform is extremely user friendly plus there is a Masterworks app that you can download on the App Store as well to access your investments. Art Investment Options – Masterworks io offers a wide variety of art investment options with works ranging from the famous street artist Banksy to historical legends such as Pablo Picasso.
To give a little more detail on the reason for my ratings, take a look at my breakdown below: