REVIEW

Masterworks

The only platform letting you invest in multi-million dollar works of art by artists like Basquiat, Picasso, Banksy, and more.
Launched
2017
Paintings offered
200+

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Overview

Masterworks is a relatively new investment platform that provides access to the world of fine art. Launched in 2017, it offers investors the chance to purchase shares in high-value artworks, giving them a piece of the action in the art market. In this review, we will take a closer look at how the platform works, its features, advantages over other investment options, and the risks that investors need to consider.

How it works

The process of investing in art through Masterworks is relatively straightforward. The platform acquires artwork from the primary market, with a focus on pieces valued at over $1 million. Once they have acquired a piece, they register it with the Securities and Exchange Commission (SEC) and create a company for that artwork. The company issues shares to investors, allowing them to own a fractional interest in the artwork.

Investors can buy and sell shares in the artwork on the Masterworks platform, with the price of the shares reflecting the current market value of the artwork. The platform charges a 1.5% annual management fee on the value of the artwork, which covers the costs of managing and maintaining the artwork.

MasterWorks art options

Features

One of the key features of Masterworks is its accessibility. The platform offers investors the chance to invest in high-value artworks without the need for significant financial resources. This is because investors can buy shares in the artwork rather than purchasing the entire piece. This allows for a level of diversification, as investors can own shares in multiple artworks, spreading their risk across different pieces.

Another feature of Masterworks is its focus on providing a level of expertise to investors. The platform has a team of experienced art professionals who select the artworks and manage the investments, providing investors with a level of insight into the art market that they might not have otherwise.

Advantages over other platforms

Compared to other investment platforms, Masterworks offers a unique investment opportunity that is not typically available through traditional investment avenues. Art is an asset class that has historically delivered strong returns, with some pieces increasing in value significantly over time. This makes investing in art an appealing option for those looking to diversify their portfolio.

Masterworks also offers some advantages over other art investment options, such as purchasing artwork directly. Buying a piece of art outright can be expensive, with many high-value pieces selling for millions of dollars. By allowing investors to buy shares in the artwork, Masterworks provides access to the art market without the need for significant financial resources.

Another advantage of Masterworks is the level of expertise that the platform provides. The team of art professionals that manage the investments have significant experience in the art market, giving investors access to a level of insight that they might not have otherwise. This can help investors make more informed decisions about which artworks to invest in and when to sell their shares.

Risks to consider

While investing in art through Masterworks has its advantages, there are also risks that investors need to consider. One of the primary risks is the potential for fluctuations in the art market. Like any investment, the value of artworks can go up or down, and there is no guarantee that an investment in art will be profitable.

Another risk to consider is the potential for damage or loss of the artwork. While Masterworks takes steps to protect the artworks that it owns, there is always a risk that a piece could be damaged or destroyed, which would impact the value of the investment.

Additionally, Masterworks is a relatively new platform and has not yet been tested over a long period of time. While the platform has seen success in its early years, it remains to be seen how it will perform over the long term.

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Masterworks Investments

Masterworks Fine Art Investments

This investment is the average of all “Blue Chip” fine art investments on the platform.
Min. Investment
$500
ANN Fees
1.5%
ANN Target Return
20%
term
3-10 yrs
Accredited
No

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