We love to introduce you to explosive investment opportunities – the kind of deals that almost anyone would love to get into.
What you’ll read about today isn’t one of those deals.
In fact, just two people were interested in this opportunity.
Surprisingly, one of them is about to walk away with 200x their money.
Let me explain.
A Downright Steal
In 2023, this painting went up for auction at an estate sale:
Admittedly, it looks pretty strange, and it didn’t attract much interest.
In fact, only two people bid on it. The winning bid was around $200.
The buyer thought he got a bargain.
But as it turns out, it was a steal.
It was a Dali
As it turns out, it was painted by Salvador Dali, one of the most famous artists of the 20th century.
Dali was a surrealist. His works often look like something from a dream, with bizarre images, intricate detail, and mysterious symbolism.
Dali’s works have historically sold for millions. For example, in 2011, his work “Portrait De Paul Eluard” sold for $18 million.
The strange-looking Dali bought at the estate sale won’t fetch millions. But it’s likely worth about $40,000 — a sum that would lead the buyer to make 200x their money.
And in the future, the new buyer might wind up making a great return, too. After all, historically, works from top artists appreciate over time.
This is just one of the reasons that art has become one of the most sought-after asset classes for investors, particularly among the wealthy.
The Greatest Store of Wealth
In scary, nose-bleed markets like we're experiencing today, the rich have always found ways to protect and grow their wealth.
For example, they invest in luxury apartments in New York or London, or in bars of gold.
But recently, they've been turning to art.
The CEO of BlackRock, the world's largest asset manager, is a big believer in art as an asset class. He called art “one of the greatest stores of international wealth.”
BlackRock has about $10 trillion in assets under management, so when its CEO makes a claim, it certainly pays to listen.
Three Reasons the Wealthy Invest in Art
There are many reasons that art can be such a powerful investment.
For starters, it provides diversification. So even if the stock market takes a dive, art can keep growing in value.
Furthermore, art offers a hedge against inflation. In inflationary times like we're in today, that's a valuable trick.
But perhaps most important of all, art can provide market-beating returns. For example, since 1995, one popular art index has outperformed the broad-based S&P 500 by nearly 3x.
Perhaps these benefits help explain why, according to the Knight Frank Global Wealth Report, 37% of individuals worth at least $30 million own fine art.
But now, art isn't just for the super-wealthy anymore…
Introducing: Masterworks
Masterworks is an online platform for art investment.
It aims to make blue-chip artwork investable for everyone. The way it does so is through fractional investments. For example, even if a piece of art is selling for millions of dollars, you can buy a small piece of it.
In many cases, minimums are just $100, and sometimes they’re as low as $20.
Furthermore, you can sell your fractional shares to other investors through Masterworks’ secondary market. There are no guarantees that someone will buy your shares. But as the platform grows in popularity, it’s likely that liquidity will grow.
As they say, past performance is no guarantee for future results. That said, Masterworks has a track record of winning performance. For example:
- A painting it offered by George Condo earned an annualized net return of 21.5%.
- A painting from Cecily Brown earned an annualized net return of 27.4%.
- And one of its Banksy’s earned an annualized net return of 32%.
Get Started Today
As noted earlier, you don’t need millions of dollars to get started. You can often invest with as little as $20.
But keep in mind, all the typical caveats about investing apply here:
For example, don't invest more than you can afford to lose, and be sure to dip your toe into the water before diving in.
Furthermore, despite Masterworks' secondary market, its art may not be entirely liquid. That means these investments can't necessarily be converted into cash at the snap of your fingers. So please don't invest your rent or grocery money here.
But if you’re looking to invest like the rich, Masterworks can be a great place to start.
Happy Investing
Please note: Crowdability has no relationship with any of the startups or investment platforms we write about. We're an independent provider of education and research on startups and alternative investments.
Best Regards,
Editor
Crowdability.com
