10-08-2021, 08:26 AM
Is collectible art an investment class?
<!-- SC_OFF --><div class="md"><p>I hope it's ok to ask this here. I was recently called by a broker in NYC who said his firm is the first to securitize artwork, i.e., blue chip paintings. He said that it's an asset class that, until now, only the ultra-wealthy could afford. He says that, overall, it's outperformed every other asset class like stocks, bonds, real estate, etc.</p> <p>He said what they do is buy paintings by established artists, form a LLC for each painting, then sell shares of that LLC to common folks like me for as little as $16K (he was willing to go as low as $8K for me to dip my toe in the water). He said it's just like real estate with comparable sales to tell us the value of each painting. He named soecific billionaires who bought paintings from artists whose paintings he said they have available for me and others.</p> <p>Is art considered an asset class? I don't mean any art but mean blue chip paintings by more established artists like Jean-Michel Basquiat, Banksy, and George Condo? I think it's more like gambling rather than investing but this broker said it's just like valuing real estate (which I understand a bit more since most of my money is in real estate).</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/rkim777"> /u/rkim777 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/q3aip4/is_collectible_art_an_investment_class/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/q3aip4/is_collectible_art_an_investment_class/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>I hope it's ok to ask this here. I was recently called by a broker in NYC who said his firm is the first to securitize artwork, i.e., blue chip paintings. He said that it's an asset class that, until now, only the ultra-wealthy could afford. He says that, overall, it's outperformed every other asset class like stocks, bonds, real estate, etc.</p> <p>He said what they do is buy paintings by established artists, form a LLC for each painting, then sell shares of that LLC to common folks like me for as little as $16K (he was willing to go as low as $8K for me to dip my toe in the water). He said it's just like real estate with comparable sales to tell us the value of each painting. He named soecific billionaires who bought paintings from artists whose paintings he said they have available for me and others.</p> <p>Is art considered an asset class? I don't mean any art but mean blue chip paintings by more established artists like Jean-Michel Basquiat, Banksy, and George Condo? I think it's more like gambling rather than investing but this broker said it's just like valuing real estate (which I understand a bit more since most of my money is in real estate).</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/rkim777"> /u/rkim777 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/q3aip4/is_collectible_art_an_investment_class/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/q3aip4/is_collectible_art_an_investment_class/">[comments]</a></span>Kind Regards R