Rich Habits Podcast
83: Is Art Investing Legit?
Sep 23, 2024
Scott Lynn, CEO of Masterworks and art investment expert, joins the discussion on art as a unique asset class. He highlights the historical returns of contemporary artwork, emphasizing its low correlation with traditional investments. The conversation dives into sourcing and storing high-value pieces, as well as the impact of blockchain technology on liquidity in the art market. Scott also discusses the growing demand for mid-career artists and offers insights for potential investors looking to diversify their portfolios into this fascinating field.
39:37
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Quick takeaways
- Investment-grade artwork, valued at approximately $1.7 trillion, offers a unique diversification strategy with minimal correlation to traditional assets like stocks and bonds.
- Masterworks employs a meticulous, data-driven sourcing process to select high-potential artworks from renowned artists, ensuring strong risk-adjusted returns for investors.
Deep dives
Understanding Art as an Investment
Investment-grade artwork represents a substantial asset class valued at approximately $1.7 trillion. Unlike everyday art pieces, investable art consists of works from renowned artists whose pieces have a long track record of price appreciation. Artists such as Pablo Picasso, Basquiat, and Banksy dominate the market, with a significant percentage of transactions coming from this elite group. This consistent demand for top-tier artists results in lower volatility and provides a unique addition to a diversified investment portfolio.
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