To stay safe, it’s best to only invest money with Masterworks that you could afford to keep locked up for years until the platform eventually sells the artwork in which you’ve invested.

While it may be possible to cash out your shares early through the Masterworks secondary market, that’s not guaranteed. It’s also not ideal for investors who need liquidity. 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.įor investors looking to generate ongoing income or who want simpler, safer alternative investments, Masterworks may not be a good fit. That makes Masterworks best for customers who are willing to take on some extra risk for the chance of higher gains. According to Masterworks, the contemporary art market delivered an average annual return of 14.1% over the past 26 years. It can take three to ten years before Masterworks sells a work of art from its portfolio, and there’s no guarantee that art works will earn a profit when they are sold. Investing in art involves unusual risks, however.

With a minimum required investment of $10,000, regular investors won’t need millions to buy valuable contemporary art on Masterworks. Masterworks could be a good option for people who want to add alternative investments in fine art to their portfolio, but would prefer to avoid the costs, risk and hassles of buying entire works of art themselves.

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