Why 98% of the rich invest 5%+ in art:  Ever wonder why the ultra rich never worry about the falling stock market?  It’s because they invest a large chunk of their net worth in assets that can withstand market turmoil, like blue chip art.  According to UBS, 98% of ultra rich collectors invest at least 5% in art, with some investing 50% or more! Now you can join them, thanks to the fractional art investing platform Masterworks.

Here's How Much You Would've Made If You Bought This Picasso Sketch 7 Years Ago

Picasso’s powerful reconceptualization of artistic expression continues to baffle the world so much that the owner of this fairly simple sketch received a ‘generational wealth’ kind of return in just seven years. Until recently, the potential for outsized returns powered by a blooming fine art market was reserved only for the ‘deeply immersed’ in the world of art shows and private galleries. Today, everyday investors can unlock it as well.


The father of Cubism led a life that could itself be described as a collage of exhilarating ups and devastating downs that left an imprint on his captivating style. Art shows all over the world report of Picasso’s paintings being sold for tens of millions and sometimes even hundreds of millions of dollars.

The sketch in question was bought for a sum that’s considered chuck change in the world of fine arts – its lucky owner got to put it on their wall for a meager $24k. Only seven years down the line, the doodle went under the hammer for a staggering $623k, or 26 times the original price. Such is the power of great art and you can use it to your advantage through Masterworks – an investment platform that has offered $700 million in art thus far.

The New York-based company lets you buy shares of iconic works of art selected by industry-leading research and acquisition teams.

Their sole aim is to single out up-and-coming artists and acquire their work before it skyrockets in value. To maximize the potential for outsized profits, Masterworks puts every piece through a strict diligence process that utilizes data analytics built on top of its proprietary database. Only 3% of considered paintings live to see themselves exhibited on the company’s website.

Unsurprisingly, they often strike gold. Some past Masterworks offerings boast annualized net returns that tower over most S&P 500 stocks. It stood at 32% for one Banksy that sold after only 378 days. George Condo’s piece reached a 39.3% annualized return. His painting sold after a 532-day holding period. Finally, Albert Oehlen’s painting secured 36.2% annually and Masterworks members who invested in it got to split the substantial gains after only 354 days.

If you’re intrigued by art’s potential but don’t know the first thing about what makes a painting worth the investment, the teams of Masterworks provide a detailed analysis of every offering. You can read about it and decide if you feel like adding its shares to your portfolio.

Fine art’s low loss rates and low correlation during periods of financial stress make it especially appealing in the current climate. Naturally, investors have taken note and are deciding to allocate from 5% to 25% of their portfolio to fine art. Click here to join them

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