Masterworks is an alternative investing platform that sells fractional shares in works of fine art. With no minimum investment requirement and accessible prices, Masterworks makes it relatively easy for investors to buy shares of contemporary artwork by famous artists like Banksy and Jean-Michel Basquiat.
The company’s research team evaluates promising contemporary artists, and purchases artworks that they deem have a good likelihood of gaining in value over time. After purchasing a work of contemporary art, Masterworks files with the Securities and Exchange Commission (SEC) to sell fractional shares in the work to investors via their platform.
That makes Masterworks best for customers who are willing to take on some extra risk for the chance of higher gains. In addition, potential investors should ideally have a passion for contemporary art and some basic knowledge of the art world, as you need to choose which art works you’d like to invest in.
Once the SEC approves a filing for an individual work of art, Masterworks sells shares for 90 days to their members as a primary offering. There is no minimum investment, and you can decide how many shares you want to buy at the listed price.
We’ve compiled what we believe to be the most complete price database of paintings that have been purchased and resold throughout history. This allows us to identify which artist markets are gaining momentum.
Historical appreciation is defined as the median annualized appreciation rate across paintings (unless otherwise noted) that have sold at least twice at public auction by a given artist, including purchase and sale commissions paid to the auction house.