fee to the purchase price and then offers these works like IPOs, effectively flipping them to investors. The company charges aof any profit realized when the works are sold.emerging wealth sector
—often those enjoying newfound crypto largesse—as opposed to old money or hedge-fund and real-estate millionaires. Those deep pockets can afford to buy artworks outright.It’s cheap. The price to buy in—as little as $20—is accessible to a much larger pool of people than can operate in the traditional art market.Blockchain technology means that investors can often use any currency, fiat or crypto, to buy a securitized token representing their stake .As Katya puts it, “buzzy NFTs or historic works by Picasso are more exciting to discuss over cocktails than index funds.
Michael Moses, an economist who examined 50,000 repeat art sales over the past 50 years, warned that only 0.5 percent of the works returned 100 percent or more. Less than 10 percent of all works returned even a more modest 10 percent compound annual return.
But without a solid track record or traders with the requisite art-market expertise, fractional art sales are likely toFor now, these schemes are most attractive to a mass audience interested in buying into a formerly inaccessible market and spinning a profit. To some, it may sound like aWith large financial institutions still out of the game, these companies depend on the buy-in of the little guy, who could conceivably be making a smarter investment choice.