Presently, investors are facing a challenge due to the significant impact of the global pandemic on financial markets. The S&P 500 is currently trading at its highest levels since the dot-com crash in 2000, and treasury rates are close to 0. This makes it harder than ever to find attractive investment opportunities. Recently, investment experts were asked by Bloomberg where they would invest $1,000,000 right now.
“They largely suggested considering alternatives, such as art.”
Historically, the wealthiest individuals, known as the “0.1% of the 0.1%,” have been investing in art for centuries. From prominent figures like the Rockefellers to modern-day titans such as Jeff Bezos, Bill Gates, and Eric Schmidt, many are actively involved in art collecting. Surprisingly, 61% of wealthy collectors allocate 10–50% of their portfolios to art. Despite the booming art market, navigating its complexities remains a challenge for many, irrespective of their wealth.
Diversifying with Art
Contemporary art prices have surpassed S&P 500 returns by 174% between 1995 and 2020, an impressive feat given the prolonged bullish stock market. Art as an asset class has also outperformed traditional safe-haven investments like gold and real estate. So, how can you incorporate this resilient and profitable investment into your portfolio? Typically, building a diversified art portfolio requires substantial sums, often in the tens or hundreds of millions. Nevertheless, there is a lesser-known… yet astute approach… that enables ordinary individuals to invest in contemporary art at a fraction of the usual cost.
This opportunity is made possible by the recently implemented JOBS Act Title II, which has unlocked access to the thriving $6 trillion art market. Securitizing art is a logical choice due to the anticipated growth in total art and collectibles wealth, projected to increase by another $1 trillion by 2026. Apart from growth potential, there are substantial returns on offer. For instance, a Basquiat painting purchased for $19,000 in 1984 was sold for $110,500,000 in 2017, yielding a remarkable 5814% gross return on investment. Through platforms like Masterworks, investors can acquire shares in multimillion-dollar artworks by renowned artists like Warhol, Monet, and Basquiat, similar to those displayed in museums and luxurious residences.
Early investors have already earned a net annualized return of 32% within a year from the sale of a Banksy painting titled ‘Mona Lisa’, surpassing the S&P 500’s return twofold during the same period. We have collaborated with Masterworks to offer our readers privileged access to their art offerings. Click the link below to bypass their waitlist and invest in multimillion-dollar paintings today.
Image Source: Pixabay
