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New Ways to Invest in Fine Art: The Smart Investor's Guide

Written by Brian | February 21, 2024

In an ever-evolving financial landscape, the savvy retail investor is constantly seeking ways to diversify their portfolio and explore alternative investments. Fine art, once the exclusive domain of the affluent collector, is now an accessible asset class through fractional platforms that enable buying shares of art instead of only whole works. But why should an everyday investor consider fine art as a good investment?

1. Fine Art is Great Asset Class to Add to Your Portfolio

First, the global art market, especially fine art, has long been recognized as a lucrative sector. [add 2X S&P data]  Second, fine art as an asset class has shown remarkable resilience, often maintaining its value and sometimes appreciating even during economic downturns. Unlike stocks or bonds, the art market is not directly tied to the stock market's fluctuations, making it a good investment for those looking to mitigate risk. Diversifying one's portfolio is a cornerstone of sound investing. Every investor, whether mature or just starting to invest, should be seeking to add fine art to their portfolio.

2. Investing in Fine Art is Now Easier Than Ever

Despite offering great returns and maintaining high value, fine art is not a common investment because its high entry barriers and illiquid nature often dissuaded the average retail investor. Today, fractional platforms have democratized art investing by offering fractional shares in blue-chip art, making it an attainable alternative investment. For example, on ArtShare.io, investors can start investing for just $50. Lowering entry barriers allows more people to start investing in artworks without the need for substantial capital upfront, traditionally required at auction houses like Sotheby's and Christie's.

3. More Than Just an Investment: Ownership, Community, and Giving

Modern investors are demanding more than just return from their investments; alternatives like fine art are well-suited to deliver on these needs.

The advent of NFTs (non-fungible tokens) and platforms like Artex have added a new dimension to art investment. While traditional art investment focused on physical artworks, the rise of NFTs and digital art platforms has expanded the scope of what constitutes art investment. This integration of technology into the art market caters to a new generation of investors and collectors, marrying the allure of the art world with the excitement of digital innovation.

Conclusion

Investing in fine art through platforms like ArtShare.io isn't just for the affluent art collector; it's a viable, strategic move for the everyday retail investor. By buying fractional shares in masterworks, investors can now access the once-exclusive art market, diversify their portfolio, and engage with a global art community. Whether you're an existing stock investor or someone passionate about supporting the arts, it's time to consider art investment as a key component of your financial strategy. Sign up below to explore the world of fine art investment and start your journey with ArtShare.io today.