Why 98% of the rich invest 5%+ in art:  Ever wonder why the ultra rich never worry about the falling stock market?  It’s because they invest a large chunk of their net worth in assets that can withstand market turmoil, like blue chip art.  According to UBS, 98% of ultra rich collectors invest at least 5% in art, with some investing 50% or more! Now you can join them, thanks to the fractional art investing platform Masterworks.

Inflation and 3 Alternative Assets To Consider In 2022

Image provided by Masterworks

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

With the highest inflation rate in 40 years, volatility spiking, and the equity markets currently in correction territory, you may be wondering where to invest?

Do you invest in stocks and hope the market doesn’t go down? Low-paying 5% bonds for years? Or just hold onto cash that’s losing value due to inflation? What a lot of people don’t realize is there are investments other than traditional assets.

Alternative assets often have low correlation and may have the ability to appreciate during a crisis like we’re seeing now. 

And getting started is so much easier than you think. As long as you have an internet connection, you’ve just about got everything you need. 

1. Consider cryptocurrencies’ past performance

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Image sourced from Flickr

In 2017, Bitcoin gained mainstream popularity when it exploded from $2,000 to $19,345. 

Recently, at its peak price of $68,000+, if you had invested in Bitcoin at its start, you would've seen a 755,554% plus gain. Not bad for a simple buy and HODL trade.

Despite the recent pullback, many expect crypto to have a bright future as the ultra-rich continue to pile in. For example, Elon Musk's company Tesla purchased $1.5 billion in Bitcoin in 2021. Microstrategy holds over 122,478 Bitcoin worth a staggering $4.4 billion. And Tyler and Cameron Winklevoss reached billionaire status partly by investing in Bitcoin. 

Investors can invest in cryptocurrencies on popular crypto exchanges. 

2. Real estate is appreciating in value

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Image sourced from Wikimedia Commons

One of the wealthiest Americans in history, Andrew Carnegie, said "more money has been made in real estate than in all industrial investments combined." And due to recent events, real estate has been raising in popularity.

According to the Federal Housing Financing Agency, most home prices increased more than 18% in 2021. And in 2022, some analysts believe it will rise higher. 

While you could invest in real estate the traditional way (buy, hold, sell), you can also invest in REITs. 

Or participate in real estate deals with alternative investment platforms , which allows you to get in deals for as little as $10 to gain exposure. 

3. Invest in multi-million dollar artwork from famous artists like Banksy

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Image sourced from Wikimedia Commons

In 2005, New York art dealers Robert Simon and Alex Parrish bought the Salvator De Mundi painting by Leonardo Da Vinci. They paid just $10,000. And in 2017, a wealthy patron bought it for more than $450,000,000.

That’s a price appreciation of over approximately 4,490,900% in just 12 years, making this portrait of Jesus the most expensive artwork ever sold.

Most people think you need to have millions in the bank to invest in fine art. And while that may have previously been the case, it's no longer true.

Because thanks to an ingenious platform called Masterworks, you can invest in million dollar contemporary artworks alongside wealthy art collectors like Bill Gates, Jeff Bezos, and Oprah Winfrey. 

And in case you’re wondering why millionaires invest in art - there’s a very good reason.

On average, blue-chip artwork prices have outpaced the S&P 500 by 164% from 1995 to 2021.

And blue-chip art prices appreciate 23.2% on average when inflation is at least 3%.

The beauty is, with Masterworks you can invest in artworks by Picasso, Banksy, or Basquiat by buying shares representing an investment in the artworks. 

Recently, Masterworks investors saw  a 32% net annualized IRR, from the sale of a Banksy painting, and they could’ve invested with as little as $20.

With a recent $1 billion valuation, Masterworks is a Unicorn art investment platform, so you’ll need an invite.

The process is simple and you can request an invitation by clicking this link. 

Just keep in mind, they regularly sell out of offerings. Recently, Banksy’s painting “Exit Through The Gift Shop” sold out in 3 hours, so some offerings are time-sensitive. 

See important disclosures at masterworks.io/disclaimer

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.

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