Investing in art is something beyond what many people can afford.
But that may no longer be the case thanks to New York startup called Masterworks.
Very simply investors can come to our website.
They can view different works of art that we have available for investment.
And they can invest amounts as small as 500
or as large as thousands of dollars in a particular painting.
Scotland, a collector who in 2017 founded the startup called masterworks,
says the concept of fractional ownership gives people lots of opportunities
that used to only be available to the super rich.
Its part of a new trend on the market called the democratization of luxury.
But Lynn says part of his job is to look out for investors without that much money.
For example, many people use IRA or retirement accounts to invest in these paintings.
So we want to make sure that the returns are as as predictable as possible
and the risk is reasonable.
When a masterpiece is sold at an auction to a collector,
it usually disappears from the public sight.
But in case of fractional ownership the art piece continues its journey from one museum to another.
We like the idea of once we purchase these paintings
and then sell them off to investors to reload them out to museums,
so they can they can be seen in the public.
The coronavirus inspired quarantine has amplified the investors appetite for art.
Since the pandemic hit the us in mid-march,
Masterworks has been attracting over 10,000 new investors a month.
All in all,people have invested over 30 million dollars in 15 world masterpieces.
In the last two years,only five works of art have been purchased.
In Masterworks, our perspective has been that art is an uncorrelated asset class
meaning that it doesnt necessarily go in the same direction
as the stock market or or other asset classes.
So what we what weve seen with COVID is that
although theres been a large decrease in the total volume of sales by by roughly half,
weve actually seen our prices increase.
And I think in June alone,we saw 22 artists that set price records.
Oil and gold prices as well as company shares are prone to ups and downs
depending on the situation in the world and changing politics.
But even the Dow Jones Index is powerless,when it comes to world masterpieces.
Vladimir Lenski in New York Anna Rise VOA News