Advertisement
If you have a new account but can't post, please email Niamh on [email protected] for help to verify your email address. Thanks :)
New AMA with a US police officer (he's back!). You can ask your questions here

Masterworks

  • 07-05-2021 7:29pm
    #1
    Registered Users Posts: 1,298 ✭✭✭ RedRochey


    Has anyone have any experience using these guys?

    https://www.masterworks.io/dashboard/welcome

    Sounds interesting but the fees seem high

    I signed up last week and have gotten a few phone calls off them, just haven't had the time yet to talk to them


Comments

  • Registered Users Posts: 1,298 ✭✭✭ RedRochey


    Just to give an update in case anyone stumbles across this later

    You have to have a phone call with them before you can invest in any art, the guy was a pure salesman but that's to be expected, told me that hyperinflation is coming and people need to diversify, of course he'd say that!

    Then we just had a conversation about the whole process, nothing unexpected really jumped out at me. They charge 1.5% annually and then take 20% of any profits, the annual charge is in the form of taking an equity stake in the art piece so they don't get paid until the art sells and are incentivized as well to make sure the art sells for a high price, so I guess the fees are high but it's a fairly niche offering so again that's to be expected.

    Only part I didn't like was they get you to invest then and there, now obviously you can say no but there's still a bit of pressure to go through with it. Asked me what my salary is and how much savings I had and then he worked out how much I could initial invest which was $4000, but then told me any subsequent investment would only be $1000, not sure about this either, could just be a money grabbing tactic, then again when I signed up initially I had to say how much I was willing to invest so they could just ignore me if it's too small.

    So I ended up investing in two pieces of "art", which are worth $10m each apparently, could've fooled me! But sure what do I know! Not sure if they update the value of the art at any time before they sell them. Also there is a secondary market for US citizen to buy and sell their art pieces to other investors but it's not available yet for non-US citizens, so I'm not too keen to invest anymore for another while anyway, my money is pretty much locked up for 7-10 years.

    Overall I'm fairly happy with it all, it's only a small amount, I know the risks involved, I have a plan to not invest for another year, plus it's kinda cool to say I own 0.02% of a $10m art piece :D


Advertisement