Masterworks Review – How You Can Become an Art Investor

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What is Masterworks.io?
- SmartAsset's free tool matches you with up to 3 financial advisors that serve your area in 5 minutes.
- Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Why should you invest in art?


How does Masterworks work?

How much does Masterworks cost?
Masterworks features
- Specific artwork selection. If you’re a lover of the arts or think traditional investing is a bit dry or uninspiring, Masterworks might offer a much more enjoyable experience. Not only can you invest in a wide selection of classic and highly regarded works of art — but you also get to choose the specific artwork you invest in and can become a partial owner of a piece of art.
- Helpful art sales and research reports. Masterworks provides plenty of data on each selection of artwork, making it easier for you to invest in art pieces. The company provides auction sales report data for any art pieces sent to auction and general global art reports recapping the current state of the art market and new art trends.
- Protected investments. Masterworks ensures your investments are secure, safe, and well-preserved to ensure maximum appreciation during sales. Masterworks keeps all of its artwork in a temperature-controlled, museum-quality art gallery. Your 1.5% annual fee helps cover the cost of your artwork’s preservation and safekeeping.
- Investor trading platform. Another key feature Masterworks provides is access to an investor's trading platform, where you can buy or sell your shares using the company’s online bulletin board. If you aren’t prepared to wait for Masterworks to sell one of the pieces of art you own shares in, you can trade or sell using this method.
- Cutting-edge algorithms. It’s in the company’s best interests to ensure your artwork appreciates, which means Masterworks only searches for the top artists and works available through the marketplace. By analyzing buying patterns, new trends, and previous historical appreciation rates, Masterworks can bring high-performing artwork to your fingertips.
How to enroll in Masterworks?
- SmartAsset's free tool matches you with up to 3 financial advisors that serve your area in 5 minutes.
- Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Pros and cons
- Low share prices. Masterworks makes it easy to invest in blue-chip works of art at a low price. Fractional shares start at just $20 and go up in price in increments of $20. While you’ll need at least $15,000 to get started, this low buy-in price makes it easy to spread your money across multiple high-value works of art.
- Easy to use platform. One thing I love about Masterworks is how easy it is to use their platform. Purchasing shares of art can be done with a click. The company also provides detailed information about each work of art and artist, so you’re able to quickly and efficiently research your investments prior to buying them.
- Art outpaces the S&P 500. One great reason to invest in art is that it historically performs well during recessions. In fact, according to the ArtPrice 100 blue-chip art has outpaced the S&P 500 by over 164% over the past 25 years.
- High commission. On the downside, Masterworks does charge a 20% commission on any profit you earn after a work of art sells. Unless you have a good understanding of the art world, it’s unlikely you’ll invest in a diverse number of top-performing artwork, which means your profit margin (after fees) could be lower than it would be when you start investing in the traditional stock market. If your artwork investments perform like blue-chip art has since 2000, the juice may be worth the squeeze and the commissions are more digestible.
- Low liquidity. Masterworks anticipates selling a painting within 5 to 10 years through the marketplace, meaning your investment funds could be tied up with this platform for a decade or longer. While you can sell shares through their online bulletin board, this function is still quite new, so there’s no guarantee you’ll find interested buyers there.
Masterworks vs. Competitors
Company | Masterworks | Arthena | Public |
Accredited Investor Requirement? | No | Yes | No |
Signup requirement | $15,000 investment | $200,000 annual salary or $1 million+ net worth | App download |
Registered with the SEC? | Yes | Yes | Yes |
Fees | 1.5% annually; 20% commission on profits | Not disclosed (vary by artwork) | 2.5% per transaction |
Accredited investor requirements
Signup requirements
SEC Registered
Fees
FAQs
Is Masterworks legit?
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Courtney Johnston is a freelance writer, specializing in finance, travel, and health. She has written for The Chicago Tribune, Benzinga, BestReviews, Mashvisor, Fundera, MoneyGeek, and The Culture Trip. She also teaches writing instruction at the University of Indianapolis. Courtney currently resides in Indianapolis.