Elon’s actually been giving the secret away since late last year. Most people just missed it. It’s understandable, there was a lot going on; the invasion of Ukraine had just begun, fuel prices were starting to soar, and 40-year high inflation was right around the corner. 

The rise in interest rates seemed inevitable, but while most investors were focused on getting out of every market they could, stockpiling cash and sticking their heads in the sand, Elon was looking to a more proven corner of the market, saying on Twitter (before he turned it into X) “buy physical things.”

But it’s not just him; recently, the Rothschilds sold one particular physical asset for over $197 million to the Dutch government. Oprah Winfrey sold this same asset for $150 million (grossing $62 million). And Jeff Bezos bought $70 million worth of it. What is this mystery asset? Not gold, or real estate, but fine art.

Think you can’t afford to invest in art? Think again. Learn more at Masterworks.

On the surface, it may be surprising that all these billionaires are making the same move with an asset most investors can’t even access. But there are a few good reasons why 85% of wealth managers, surveyed by Deloitte, say there’s a place for including art in wealth offerings to their clients:

• Blue-chip contemporary art prices have outpaced S&P 500 returns by 136% (1995-2022).

• Art and collectibles is an estimated $1.7 trillion asset class that’s expected to grow 58% in just 5 years, according to Deloitte.

• The WSJ has called art “among the hottest markets on earth.”

• Art has among the lowest correlation to public equities of any major asset class, according to Citi (from 1995 to 2021).

Think you can’t afford to invest in art? Think again. Learn more at Masterworks.

Why is this alternative asset so popular right now? 

According to Citi, Art generally has a low average correlation to the stock market, so blue-chip (contemporary) art prices don’t necessarily follow the direction of equity market moves.

And during periods of high inflation of 3.0% or higher, blue-chip (contemporary) art has outpaced other asset classes such as REITs, equities in the S&P 500, and gold.

This article originally appeared on MasterWorks.com and was syndicated by MediaFeed.org.

*[Please note: All investing activities involve risks and art is no exception. Risks associated with investing through the Masterworks platform include the following: Your ability to trade or sell your shares is uncertain. Artwork may go down in value and may be sold at a loss. Artwork is an illiquid investment. Costs and fees will reduce returns. Investing in art is subject to numerous risks, including physical damage, market risks, economic risks and fraud. Masterworks has potential conflicts of interest and its interests may not always be aligned with your interests.

Liquidation timing is uncertain. Expenses and fees are listed in our Offering Circulars. Note: Fees are 1.5% per annum (in equity), 20% profit share, and certain expenses are allocated to the investment vehicle. Investors should review the offering circular for a particular offering to learn more about fees and expenses associated with investing in offerings sponsored by Masterworks. Masterworks will receive an upfront payment, or “Expense Allocation” which is intended to be a fixed non-recurring expense allocation for (i) financing commitments, (ii) Masterworks’ sourcing the Artwork of a series, (iii) all research, data analysis, condition reports, appraisal, due diligence, travel, currency conversion and legal services to acquire the Artwork of a series and (iv) the use of the Masterworks Platform and Masterworks intellectual property. No other expenses associated with the organization of the Company, any series offering or the purchase and securitization of the Artwork will be paid, directly or indirectly, by the Company, any series or investors in any series offering. For more information, see “IMPORTANT DISCLOSURES” at Masterworks.com/cd]

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