Forget Stocks: Masterworks Lets You Buy Shares of Famous Paintings

For $20, you can own a piece of a Warhol or Picasso

Forget Stocks: Masterworks Lets You Buy Shares of Famous Paintings

Forget Stocks: Masterworks Lets You Buy Shares of Famous Paintings

By Kirk Miller

Current stock market giving you the jitters? We’ve already told you about plenty of ways to invest your money that offer more interesting returns: Wine. Whisky. Um, Black Eyed Peas royalties.

And, of course, art. Investments in several styles of fine art have outperformed the stock market over the last decade — a reason you might want to take a good look at Masterworks.

Launched last year, Masterworks touts itself as the first art platform that lets you invest in “iconic, multi-million dollar” artwork, which includes seven-figure offerings by Warhol, Monet (Coup de Vent), Picasso, etc. 

And it’s a safe bet: paintings valued over $10 million have increased in value 148% over the last 10 years, according to the Art Basel & UBS Art Market 2018 Report. Hey, even that recently shredded Banksy appreciated.

How it works: Masterworks looks for “undervalued” masterpieces, acquires the painting at auction, files an offering with the SEC as a (!) Special Purpose Vehicle in Delaware (logistics and/or legal loophole, we guess), and investors purchase shares starting at just $20, all securitized by blockchain.

A lot of this is still in the works (including a trading platform), but the idea here is that you’ll be getting some pretty safe returns. And you’ll have some newfound art-world knowledge to wield at your next cocktail-party. Says founder Scott Lynn: “If an artist takes a painting public through the Masterworks platform and gets 10,000 investors, those investors are more likely to follow that artist in the future and engage with her work.”

Makes for a better conversation piece than a REIT, that’s for sure.

Photos: pxhere/Creative Commons; Masterworks

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