2022 Masterpieces Review

Minimum account requirements

No minimum investment amount.

Masterworks facilitates investors with investment options as low as $20.

Investment opportunities Investors are allowed to choose the works of art they want and buy as many shares as they can.
Redemption options When an artwork is sold, investors will earn a profit based on the share originally purchased.

Transparency

Masterworks is a legit investment platform and offers a straightforward workflow for investors.

What are Masterpieces?

Masterworks is a unique investment platform that allows you to buy fractional shares of works of art. In addition to offering low investment requirements and accessible pricing, Masterworks makes it relatively easy for investors to purchase shares of contemporary artworks from well-known artists like Banksy and Basquiat.

According to a statement from the Wall Street Journal, the fine arts sector has recorded an average return of 10.6% per year.

  • Start investing with just $20.
  • Do you want to liquidate before the sale of works of art? Masterworks has a plan and you can sell and buy your shares on the secondary market.

Start with the masterpieces today

How The Masterpieces Began

Scott Lynn founded Masterworks in 2017. Although a relatively new concept, Masterworks understands the importance of art being a relatively safe investment.

This is why they take extreme care with every investment opportunity presented and ensure that every piece of art is insured and kept safe.

To date, Masterworks has over 400,000 registered investors on its platform and releases a new high-end piece of art almost every week. Their ownership data to determine which artist market has the most investment potential is what allows them to be so active.

Investment options of masterpieces

Once the Securities Exchange Commission (SEC) approves the filing of an individual piece of art, Masterworks offers its members 90 days to purchase shares as a primary offering.

With no minimum investment, the number of shares you want to buy in the artwork depends on your risk tolerance and budget. Fractional shares tend to start at $20.

Once you’ve invested, you can expect Masterworks to keep that particular piece of art for three to ten years. This gives them enough time to find sales opportunities to art collectors or the contemporary market.

Once the sale of the artwork is finalized, Masterworks will distribute all profits to the investors/shareholders calculated based on the number of shares held, minus their profit percentage.

Can you withdraw money earlier?

You can cash out your fractional shares at any time by reselling them to another user through the Masterworks Marketplace. Prices for fractional stock sales vary based on demand from other Masterwork users.

Keep in mind, however, that there is no guarantee that there will be interested buyers in the secondary market.

  • There are no transaction costs for buying and selling shares on the secondary market.
  • The shares will be available for trading 90 days after the closing of the offering.

It is important to note that the Masterwork secondary market is only open to US citizens who have a bank account with a US-based bank.

Masterpiece Prices and Fees

Masterpieces are generous with trading fees and are very transparent with their pricing and fee structure.

You will not be charged for the following items:

  • Purchase of initial shares in a work of art
  • Sell ​​shares to another investor in the secondary market.

Masterworks charges two sets of fees for the following:

  • Annual management fee of 1.5% based on the total value of your account. Deducted annually from equity, diluting your stock. It is not possible to pay the fees in cash.
  • Masterpieces will benefit from 20% of the sale of artwork on the open market. These fees contribute to the management of artworks, storage, appraisals and insurance, as well as SEC regulatory fees.

Characteristics of masterpieces

Masterworks has several aspects that attract investors. The team is extremely talented, and their determination and experience help investors achieve maximum profit. Here are some highlighted features offered to their investors:

Excellent art investment research

Users have very good research resources on the fine art market and industry, including a database of contemporary art prices that tracks thousands of works of art. You can search for specific artists and find the current prices for their work.

They also provide users with an abundance of articles and videos teaching a plethora of art investing strategies.

High potential industry

Surprisingly, works of art have always produced higher returns than stocks, bonds and real estate. The average annual return on art investments over the past 26 years has been 14.1%. By comparison, the S&P 500 gained 9.9%.

The best of the best

When it comes to securing the big names in beautiful works of art, Masterworks has it in the bag. They often feature valuable works of art by Basquiat, Picasso, Banksy and many other 7-8 figure works of art.

Great customer service

Great customer service is hard to find these days. Masterworks offers customer support by phone and email.

You will have the opportunity to connect with an art specialist where you can discuss your goals, risk tolerance and any investments.

Performances of masterpieces

Masterworks has purchased over $200 million worth of paintings since its inception and average purchases of $1-30 million every 10 days. They are easily one of the best buyers in the space. They hold over $500 million in securitized paintings.

Because they haven’t been around that long, Masterworks only has a few exits from their investments. With such limited data, Masterworks still claims that on average, you will see a 30% annualized return.

Masterworks has a very successful track record, but there are always risks associated with investing. There is no guarantee that all shares will be tradable or liquid in the secondary market.

Remember that fine art is a highly subjective investment.

Highlights of masterpieces

Diversification

Masterpieces provide the opportunity to diversify assets by investing in works of art. He revolutionized the world of investing.

Data

Masterworks offers the user access to its database of art and fine art markets. You can search for a specific artist and current prices. The platform provides comprehensive information on recent sales and annual investment returns.

Anyone can invest

Masterworks is available to anyone to invest and you don’t need to be an accredited investor. The platform was created and designed specifically to help investors.

Weakness of Masterpieces

Users design their own artistic investment portfolio

Although investors pay annual management fees, they still require you to design your own portfolio.

It’s okay if you have some knowledge of contemporary art, but it’s not ideal for the average Joe.

Fortunately, the experts at Masterworks assess the quality of each coin and only list those that they believe have good investment potential. So, theoretically, any investment you make should generate good returns.

High fine art tax

Works of art are taxed as a collector’s item and a long-term capital gains tax of 28% is applied. Compare that to the traditional long term capital gains taxed at 20%, the extra 8% can add up.

Final Thoughts

There is no doubt that Masterworks is an innovative platform that allows you to diversify your investment portfolio. The possibility of investing in multi-million dollar works of art is attractive, as is managing everything for you.

With a valuation of over $1 billion, Masterworks is going nowhere and will be a relatively safe alternative investment.

So, if you are considering investing in the art market but don’t have a few million dollars to spare, Masterworks is the option for you.

Start with the masterpieces today

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