As investors look to diversify their portfolios with stocks, real estate and property, they may search for a few non-conventional options to put their money. And while there are clear choices like private investing and tokenization, have you ever considered buying shares of art?
Well, websites like Masterworks are making that a real possibility. Founded in 2017, the company mission is to make it “possible for everyone to invest in blue-chip artwork.” Here is how they describe their system and how it works:
- Masterworks sources paintings and commits its capital to purchase them
- They file an offering circular with the Securities and Exchange Commission to offer it publicly
- Investors can invest in the painting by purchasing shares
- Masterworks sells the painting and each investor shares in their proportionate share of any profit or loss
In turn, Masterworks is opening the door to investing in high-value artwork to everyone; In fact, the company boasts that it has had works available that were created by famous artists Andy Warhol, Claude Monet and Banksy.
So, while there are absolutely risks involved these investments, who should you consider when buying shares of art? Well, there are four famous paintings from Masterworks that you can invest in today:
- Mona Lisa by Banksy
- 1 Colored Marilyn (Reversal Series) by Andy Warhol
- Hammer 5 by Jonas Wood
- Maxine by Alex Katz
Therefore, if you are looking to add some flavor to your portfolio, it may be time to start taking a look at investing in fine art.
Nick Clarkson is a web editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities
Investing through equity and real estate crowdfunding or asset tokenization requires a high degree of risk tolerance. Despite what individual companies may promise, there’s always the chance of losing a portion, or the entirety, of your investment. These risks include:
1) Greater chance of failure
2) Risk of fraudulent activity
3) Lack of liquidity
4) Economic downturns
5) Dearth of investor education
Read more: Private Investing Risks