As such, the fine art investment space has traditionally been reserved for the wealthy. In a 2017 BBC article on the advantages of investing in the fine art space as a retail investor, it was noted that individuals will need to have a starting fund of anywhere between £5,000 and a whopping £500,000. Supporting Lynn is a team of 17 employees who also possess a wealth of experience in the fine art industry, with the company’s headquarters located in New York. The project’s founder and CEO – Scot Lynn, is a seasoned art collector with more than 15 years worth of experience in the space.

We are not talking about any old paintings here, but the likes of masterpieces from artists such as Monet and Warhol. While we will explain the fundamentals in more detail further down, Masterworks operates on a crowdfunding-style business model, insofar that fine art pieces are purchased by the platform, and then sold to investors in the form of fractionized shares. Launched as recently as 2017, Masterworks is an online platform that allows everyday consumers to invest in the multi-trillion-dollar fine arts arena.

4.2 Step 2: Tokenized Security Offering.

4.1 Step 1: Masterworks Sources Fine Art Pieces.

4 How Does the Investment Process Work?.Within our review, we’ll cover the ins and outs of what you need to know, such as what Masterworks is, how the investment process works, how you are likely to make money, whether or not your funds are safe, and more. If this sounds like something you would like to explore further, we would suggest reading our in-depth Masterworks review prior to taking the plunge – not least because an alternative investment such as fine art is somewhat complex in comparison to purchasing blue-chip stocks. Each share is worth $20 of the total value of the piece, with your ownership percentage proportionate to the number of shares you decide to buy. That was until the team at Masterworks launched its crowdfunding-style platform that enables you to purchase fractional shares of a fine art piece. This is because top-grade art pieces often sell for millions of dollars, subsequently putting it out of reach for the vast majority of us. Not only does it act as a diversification tool against a downfall in the traditional stock markets, but fine art typically increases in value over time.īut, there is a slight problem with accessing the fine art investment arena if you’re an everyday investor. With that being said, many within the investment space note that fine art is an excellent asset to store your wealth. If you’re looking to invest in a physical store of value – then you might be considering the merits of gold, silver, diamonds, or real estate.

How to use masterworks