Since the 1700s, the Rothschild family has been decorating the interiors of their lavish manors with pieces commissioned by medieval kings, Roman consuls and Venetian merchants. Together, their collection has an estimated value of over $2 billion.
The Rothschild wealth allowed the family to own the original works of the Old Masters. As expected, parts of the family's collection fetch exorbitant amounts at auctions. In October 2023, several dedicated auctions were held in New York to sell mostly pieces acquired by Baron James Mayer de Rothschild in the 19th century. It overshot estimates and sold for over $62 million.
"It was the idea of not just having a museum but living in a museum," Christie's Deputy Chairman Jonathan Rendel about the Rothschilds' collector spirit.
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Not so long ago, it would have seemed ludicrous for regular people to invest in art. But now, through fractional ownership, anyone can own shares of artwork made by today's Rembrandts, Monets and da Vincis.
A single painting bearing the name "A Young Woman Holding a Hare with a Boy at a Window" went under the hammer for $7 million. That's nothing compared to the $180 million secured by Eric de Rothschild years back when he parted with two Rembrandt portraits.
"A Young Woman Holding a Hare with a Boy at a Window" by Gerrit Dou.
Image source: mutualart.com
The Rothschild esthetical taste is so distinct that it's often referred to as "le goût Rothschild." However, their selective attitude and preference for traditional esthetics aren't the only reason their private collection is worth $2 billion today. The other, possibly equally important, is time.
As the years go by, the work of a handful of artists becomes more valuable, often by a wide margin, than the works of their contemporaries. Even though it’s impossible to predict with certainty which artists’ works will eventually sell for millions, experts consider several factors to anticipate their upturn. With Masterworks, you can acquire the shares of pieces that have undergone a series of assessments through advanced data analytics and weigh-ins from industry experts. Masterworks focuses mainly on contemporary and post-war artists, as their works tend to bring high returns in a comparatively shorter time frame.
Image courtesy of masterworks.com
For the past 26 years, contemporary art has outperformed the S&P 500, but there was no way of investing in it for retail investors. Now, with Masterworks, you can dedicate a small amount of your portfolio to art and own a piece by modern masters such as Basquiat, Picasso, Banksy and others.
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