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Allocate at least 5% of your portfolio to art

According to financial experts, the current banking crisis is worse than the Great Recession of 2008, and close to 50% of Americans are worried about their money being safe in a bank.

As a result, they’re seeking out alternatives like fine art, which has been called “the new gold” and “one the best stores of wealth.”

Contemporary art has outpaced the S&P 500 for the last 27 years by 136%, while displaying lower correlation to stocks than both bonds and gold.

For years, there was no way to invest in art unless you had millions to buy an entire painting. But an innovative platform called Masterworks is changing that.

What is Masterworks?

Masterworks gives you the ability to invest in fractional shares of blue-chip contemporary art. That means paintings by artists like Banksy, Picasso and Basquiat.

Every piece of artwork available to invest in through Masterworks is thoroughly vetted by their team of industry leaders, and less than 3% of all artwork passes their criteria. Once the Masterworks acquisition team finds a piece they deem worthy based on proprietary data, they purchase it, securitize it, and offer fractional shares that their members can invest in.

This is where you come in.

With Masterworks, you can diversify your portfolio by investing in a piece of fine art, and you won’t need to get dressed up and spend millions at an art auction.

Masterworks will hold the painting for 3-10 years before selling it, or you can sell your shares yourself on the secondary market.

Because of its low correlation to equities, fine art can still go up in value while stocks are crashing – like in 2022, when every single one of Masterworks 9 exits were profitable, delivering returns between 10% to 35%.

Get started with Masterworks today and you could make your portfolio as beautiful as a Starry Night.

How it works

Step 1: Accredited investors just need to visit Masterworks.com, where they’ll be prompted to enter a few details about their portfolio and investment goals.

Step 2: Investors can schedule a call with one of Masterworks Advisers’ registered investment representatives to determine if any artworks from their roster, which has included Banksy, Basquiat and Picasso, match those goals.

Because works are securitized and broken into shares, investors can allocate as needed between multiple paintings, without spending millions on a full work.

Step 3: When Masterworks sells a piece you’ve invested in, you get a return from any net proceeds. Past exits are not indicative of future performance, but representative returns (net annualized) include 14.6%, 16.0%, and 17.6% across their 22 exits.

Em Norton Staff Writer

Em Norton is a Staff Writer for Moneywise. Em holds a B.A. in Professional Writing from York University and has been writing professionally since 2019. Em's work has previously been published by Room Magazine, IN Magazine, Our Canada and more.

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.