These days, investments are within the reach of the average Joe and Jane, which is a great thing.
Thanks to smartphones and our good ol’ friend the internet, we can readily access basic information about investing and reliable platforms for engaging in it. It’s about time the general public gained some knowledge about stocks, bonds, mutual funds, and the rest of the investment arsenal.
On top of that, new investment options are gaining traction right before our eyes. Sure, they carry their own risks, but hey, risk comes with the territory where investing is concerned.
So, why don’t you try investing in—wait for it—a painting?
Before you utter the word “ludicrous,” here’s a heads-up: This kind of investment is legitimate and productive. If you’ve never heard of substantial investments in top-notch paintings, now you can learn all about them because, frankly, Masterworks is darn good at what it does.
A masterly mission
Launched in 2017, Masterworks is the first-ever platform to facilitate transactions of shares attached to iconic works of art. In much the same way as your stocks entitle you to bits of a corporation, Masterworks enables you to own shares of valuable artworks.
Masterworks is the brainchild of Scott Lynn, an entrepreneur who’s lived and breathed technology for more than two decades. Lynn has long been passionate about contemporary art, and he has even gained recognition for his impressive collection of abstract expressionist works.
Masterworks can then be regarded as a fusion of Lynn’s love for art and technology. You can see how deeply he cares about both areas in the step-by-step process of each Masterworks transaction.
A meticulous procedure
Here’s how the process unfolds.
The first step is in-depth research. Aside from verifying the authenticity of the art pieces, the Masterworks team looks into the performance of artist markets. In particular, it tries to determine which markets have attractive appreciation rates. Conveniently, it has put together a comprehensive price database so that investors can readily see the appreciation of each artist’s works over the years.
Next up is acquisition. Having determined which artist markets can fetch the best values, Masterworks purchases the finest specimens from those markets. In other words, it offers nothing less than the cream of the crop to its members.
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Once a painting is acquired, Masterworks securitizes it. (Fancy-sounding term, huh?) By filing an offering circular with the Securities and Exchange Commission, Masterworks enables the public to invest in the painting.
Having dotted its i’s and crossed its t’s, Masterworks can start facilitating transactions of shares in that painting via a secondary market (which, by the way, is available only to U.S. citizens with U.S. bank accounts). On this platform, you can buy and sell shares in artworks without having to pay transaction fees. Moreover, you can transact shares up to 90 days after the primary offering closes.
To further aid its investors, Masterworks provides plenty of art- and business-related resources on its website. By continuing to feed your mind, you can properly navigate this vibrant corner of the investment realm.
At the end of the day, while an ocean of investment information is at your fingertips, it’s your art expertise and strong decision-making that will help you thrive in this venture. To start investing in the works of Picasso and Basquiat, head over to Masterworks right away!
