Art Investment Blockchain

Modernising Modern Art Investment

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Written by
Marc Garriga

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5 March 2019

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Investing in fine art is not a new concept, although this channel has been monopolized by only the wealthiest individuals, collectors, and galleries. A few works of art have recently traded above €100 million providing the sellers and auction houses with very substantial gains.

Of course, there are risks at these price levels. World events and economic crises can deflate the value of just about anything, although great art will always remain scarce and timeless.

Bar-room Scene

Bar-room Scene, oil on canvas, (1835). William Sidney Mount. Via the Art Institute of Chicago.

A Better Way to Invest in Fine Art

In most cases, an investor would likely be the sole purchaser of a particular piece, although groups of investors and syndicates do collectively gather the capital required to purchase a single work of art.

Alternatively, investors can invest in privately owned art funds that operate as an equity mutual fund. Your success depends on the fortunes and skills of the art investment managers who will also charge a commission and split the profits, if they should occur.

With this in mind, consider the possibility of purchasing fractional shares of a masterpiece in a transparent environment with secured provenance and incorruptible record of your ownership position.

 

Return Potential for Art Investments

Art is a tangible investment. Since the 2008 recession, art has outperformed leading economic indicators, according to a 2016 Huffington Post article titled “Why Invest in Art Now?” The same article mentions that 78% of wealth managers believe that art should be a part of any wealth management offerings.

As with equities, some art and artists’ values will soar, while others may not. However, investors with a developing interest in art should consider diversifying their portfolio into this fascinating arena.

Fractional share art investing would allow individuals to buy a portion of a one-of-a-kind asset while enhancing their art appreciation and taking pride of ownership of one or more specific pieces.

 

A Modern Way to Invest in Art

Maecenas, with headquarters in London and Singapore, has created the first blockchain-based fine art auction platform. Maecenas’ breakthrough technology loosens the traditional grip that auction houses and elite brokers have held on the art market for centuries. Through Maecenas electronic auctions, investors may now purchase and sell shares of individual art pieces without paying the exorbitant commissions demanded by intermediaries.

Maecenas is moving to democratise the world of art. Investing is no longer limited to ultra-high net worth individuals who operate in an arena with no rules nor transparency.

With Maecenas, accredited investors become part of a global art community with the opportunity to bid on fractional shares of investment-grade art recorded digitally on blockchain ledgers. This platform creates a more fair and transparent marketplace, eliminates worries about provenance and security and is a mechanism to evaluate art pieces better.

 

How is Blockchain a Viable Transactional System?

Art investing in the first six months of 2017 increased on a year-to-year basis by 18%, according to a Deloitte Art & Finance Report. The larger transactions for investment-grade art, totaling in the trillions of dollars, has occurred mostly through the large auction houses of Sotheby’s and Christie’s and several brokerages. Smaller investors cannot participate.

Blockchain technology and transparent electronic auctions change all that. Smaller investors now can participate, enabling them to diversify their investment portfolio.

Blockchain technology is fundamentally a bookkeeping system that records transactions across a broad network of computers. Because of the breadth of the record keeping and the ledger system, sales records are transparent and incorruptible.

While much positive and negative commentary has swirled around the volatility of cryptocurrencies like Bitcoin and Ethereum -- which are based on blockchain technology -- many corporate, university, and finance leaders are realising that blockchain is the future of record-keeping.

MIT and Oxford have implemented 6-week educational courses in blockchain technology and its value for business innovation and application.

Investment giant Goldman Sachs has endorsed Bitcoin and blockchain for its institutional investors. Moreover, even Chinese President Xi Jinping has hailed blockchain as an “economic breakthrough.”

 

Contact Maecenas for More Information

Visit our website for more information about our platform and a better way to invest in art. While the platform is innovative, the principles of buying and selling shares in investment-grade art are traditional.

Check out our Frequently Asked Questions to help you clarify any questions you may have on our platform solution.

Also, you will find the How It Works section of the website that depicts some examples of how the platform works for investors, collectors, family offices, and galleries.

If you have more questions and wish to begin a dialogue with Maecenas, complete the simple Contact Form that will tell the Maecenas professionals how you prefer to be contacted.

 

Topics: Art Investment, Blockchain

Marc Garriga

Written by Marc Garriga

Marc has over 10 years of experience in Fortune 500 institutions as well as at start-ups across Spain and Singapore. Marc is a T-shaped marketer with extensive experience across sales, growth, product and project management with a strong focus on digital and tech products. Marc has been involved in blockchain projects since 2014.

Please read the following disclaimer >

This blog post is illustrative and for informative and general education and discussion purposes only. It is not, and should not be regarded as “investment advice” or as a “recommendation” regarding a course of action, including without limitation as those terms are used in any applicable law or regulation. This information is provided with the understanding that with respect to the material provided herein (i) MAECENAS is not acting in a fiduciary or advisory capacity under any contract with you, or any applicable law or regulation, (ii) that you will make your own independent decision with respect to any course of action in connection herewith, as to whether such course of action is appropriate or proper based on your own judgment and your specific circumstances and objectives, (iii) that you are capable of understanding and assessing the merits of a course of action and evaluating investment risks independently.. MAECENAS does not purport to and does not, in any fashion, provide tax, accounting, actuarial, recordkeeping, legal, broker/dealer or any related services. You should consult your advisors with respect to these areas and any material with regards to investment decisions. You may not rely on the material contained herein. MAECENAS shall not have any liability for any damages of any kind whatsoever relating to this material. No part of this document may be reproduced in any manner, in whole or in part, without the written permission of MAECENAS except for your internal and/or personal use. This material is being provided to you at no cost and any fees paid by you to MAECENAS are solely general educational purposes. All of the foregoing statements apply regardless of (i) whether you now currently or may in the future become a user of MAECENAS’s platform or products and (ii) the terms contained in any applicable contract between you and MAECENAS.

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