When you’re in your twenties, there are many things that you would like to buy that you don’t currently have the means for. High-priced art is one of those things. However, in 2023, there’s nothing that you cannot buy in installments.
Masterworks is a company that has recently come out with a business model that allows you to buy expensive art in installments that only last $20. We have listed everything you want to know about the company below.
What is Masterworks?
Art is one of the oldest asset classes in the world. If you want to find ways to invest in something that won’t be affected by changing interest rates, then you’re likely to invest in masterworks. Masterworks is a website that allows you to buy fractional interests in the artwork.
You’re essentially using art as a stock which means that every time the painting appreciates, you get richer. You’re not going to buy or store the painting on your own.
You could say that you own a part of it. It’s democratizing art, so it’s owned by the people instead of governments or governing bodies who can gatekeep it.
What Are Some of the Benefits of Masterworks?
There are several reasons that so many people seem invested in this business model, but much of it has to do with the fact that it’s opening up the definition of what it means to own art and earn off of art. It’s a much more liquid asset than owning physical art in your home because there’s always someone who could be interested in your share.
It’s More Affordable
You can purchase art for as little as $500, and then you must keep paying its $20 fractional increments. You no longer have to own art that would take years to save.
Diversifies Your Investment Portfolio
You no longer have to worry about investing in only bonds, bank accounts, or cryptocurrency. Art is a significant investment contender, and Masterworks makes matters much easier for you.
Authenticity of Art
You don’t have to worry about finding and choosing art anymore. The art is chosen by specific art collectors who can properly price the art.
You Can Sell the Shares Anytime
Masterworks affords you a lot of liquidity with shares, which means you can buy a share at any time and sell the shares at any time. You make enough money for it to be a sound investment, and you can decide when you want to stop investing.
What are Some of the Cons of Masterworks?
As interesting as Masterworks sounds, the model has some drawbacks.
It Devalues Art
The perceived value of art is exceptionally important, and many believe that allowing it to be accessible to the general public may devalue how much of an asset it is.
Requires an Interview and High Fee for Sign-Up
To complete the sign-up, you must get on a call with the company, which may not be everyone’s cup of tea. You have to pay $500 from the get-go, which is quite steep in terms of a startup fee.
It Would be Best if You Researched Art
You’re at the mercy of what the art critics tell you, so you shouldn’t opt for the platform if you don’t have time to research.
Masterworks is a new platform that allows you to buy and sell art in the form of shares. There are many bragging rights that one can get from this model. However, it’s up to you to decide whether you want to own art or can own it physically.
