Alternative Investments (1): Fine Art

Today and In the following days we will present 7 alternative investments you might not have heard of. Once you begin researching offbeat ways to invest your money, you realize the possibilities are endless. But these are some popular ones to consider.

If you’re looking for ways to diversify your wealth and are seeking alternative investments that don’t tend to correlate with the stock market, fine art can be one of them. The good news is you don’t need a a million dollars in the bank to get started. An easy, low-cost way to invest in art is with a company like Masterworks. Similar to crowdfunded real estate, Masterworks lets you buy a small stake in pieces of art. The company buys “blue-chip art” and then sells shares as low as $20. When the painting is purchased, an offering circular is filed with the SEC so you are protected by securities laws. Masterworks charges a 1.5% management fee plus 20% of any future profits. They look to exit each holding after 7 years with 10 years being the maximum.
Of course, you can also take a more traditional route and go through an auction house or contact an art dealer directly. But if you are interested in a simple way to add art to your portfolio, this could be it.
Art is one of many alternative investments worth considering. In the next days we are going to share 6 more offbeat investments you may or may not have heard of.

Sven Fransien