The Unexpected Way Investors Are Capitalizing on the JOBS Act (And How You Can Too)

When the JOBS Act was signed into law in 2012, it opened up a number of new opportunities that were reserved for accredited investors. Only 8% of Americans have accredited investor status. In other words, this opened up exclusive investments that were previously off-limits to roughly 92% of Americans. 

One recently unlocked investment that’s gaining momentum is securitized blue-chip art. 

You might be wondering, why art? Well, the “0.1% of the 0.1%” have invested in art for centuries. And, they still do today. 

Jeff Bezos, Bill Gates, and Oprah Winfrey have built collections valued in the hundreds of millions. And before them, the Rockefellers amassed the world’s most valuable art collection ever sold—a staggering $835M. 

And while that’s incredible, experts project the value of art to grow even more. Accounting firm, Deloitte, estimates the wealth held in art will increase by $1 trillion in less than 4 years. With all of this growth, the Wall Street Journal reported that “art is among the hottest markets on earth.” 

Not many people talk about art as a financial asset. You probably see art as something that makes your living room look nicer, but many high-net-worth individuals and institutions see it as an investment. 

According to UBS, two-thirds of high-net-worth collectors buy art for an expected ROI. When you look at the price appreciation of top-tier artists, you understand why.

For example, Picasso’s Marie-Thérèse, which originally sold for $6,800,000 in 1997, recently fetched $103,400,000 at a Christie’s New York Auction in May. That’s an increase of more than 1,400% from the painting’s original price. No wonder so many billionaires allocate 10-30% of their entire portfolios to art.

Blue-chip art prices also outpaced the S&P 500 by 164% from 1995-2021. This is quite impressive considering the record bull market we all witnessed. Over that period, blue-chip art prices appreciated 13.6% annually on average. Additionally, Citi found that art has an incredibly low correlation to the stock market. Assets with a low correlation offer a level of protection from market volatility. Art’s merits as an investment are hard to ignore. That’s why Deloitte argues “art is an essential part of a wealth management offering.” 

So how can you invest in blue-chip art?

Historically, you’d need tens of millions to build a properly diversified portfolio of art. But there’s a little-known — and incredibly smart way — for everyday people to invest in art. One that allows you to participate without breaking the bank. 

A company called Masterworks has made multimillion-dollar paintings investible. This disruptive fintech startup from New York City has finally opened the doors to this exciting $1.7 trillion asset class. Now, all you need is a stable internet connection to invest in works by Warhol, Banksy, and even Picasso. 

Masterworks has an industry-leading research team that does extensive data analysis to find the right masterpiece for you. They will buy a painting and securitize it which allows you to buy shares representing an investment of that painting. This is done securely on their platform. Masterworks holds the work and when they sell, you get a portion of the proceeds. You also have the option to list your shares on their secondary market if you’d like. It’s that simple.

Early investors already received a net IRR of 30%+ in 2020 and 2021 from the sale of two paintings. With results like that, it’s no surprise their $7.4M Banksy painting Exit Through The Gift Shop sold out in 3 hours after launching. 

To date, Masterworks has securitized over $350 million dollars worth of art, and over 300,000 investors have signed up. They even secured a valuation of over $1 billion.

We decided to partner with masterworks to give our readers priority access to their latest offerings. Click this link for priority access and invest in multimillion-dollar paintings.  

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