{"id":1374,"date":"2022-11-10T17:37:00","date_gmt":"2022-11-10T17:37:00","guid":{"rendered":"https:\/\/moneymade.wpenginepowered.com\/?p=1374"},"modified":"2025-10-02T19:30:02","modified_gmt":"2025-10-02T19:30:02","slug":"public-vs-masterworks","status":"publish","type":"post","link":"https:\/\/moneymade.io\/learn\/comparisons\/public-vs-masterworks\/","title":{"rendered":"Public vs Masterworks: Which One is Best to Invest in Art?"},"content":{"rendered":"\n

Investing in fine art has never been easier with platforms like Public and Masterworks. We compare them to see which one stands out.<\/em><\/strong><\/p>\n\n\n\n

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Fine art investing has long been a popular investment among the wealthy and famous.<\/p>\n\n\n\n

Leonardo DiCaprio has been a long-time collector of Jean-Michel Basquiat, while Madonna’s art collection includes paintings by Frida Kahlo.<\/p>\n\n\n\n

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Art market sales reached $65.1 billion in 2021 alone.<\/p>\n<\/blockquote>\n\n\n\n

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Contemporary art has outperformed the S&P 500 for the past 25 years, according to data compiled by Masterworks. And thanks to platforms like Masterworks and Public, art collecting isn\u2019t just for the elite.<\/p>\n\n\n\n

If you\u2019re looking for the best way to invest in art, you may want to consider adding fractional shares of fine art to your investment portfolio. There are many platforms that make it easy to invest in fractional shares, so how do you decide which one is for you? If you compare Public vs Masterworks, two popular fractional investing platforms, both give you the chance to invest in blue chip art, but there are many other differences in their offerings.<\/p>\n\n\n\n

Public vs Masterworks at a glance<\/h2>\n\n\n\n

For those interested in the art world, both Public and Masterworks provide a way to invest in high-end fine art without having to sell a kidney. Both platforms give investors the chance to own masterpieces by modern artists without having to be wealthy through fractional investing. They are both open to non-accredited investors and provide a curated collection of blue chip artwork.<\/p>\n\n\n\n

The biggest difference is that while Masterworks is focused just on the art market, Public also gives investors the chance to buy fractional shares of other asset classes, including stocks, NFTs, crypto, luxury items, sports cards, and even first-edition books.<\/p>\n\n\n\n

<\/td>Public<\/strong><\/td>Masterworks<\/strong><\/td><\/tr>
Investment options<\/strong><\/td>Stocks, ETFs, crypto, art, NFTs, sports cards, sneakers, books and comics, luxury items<\/td>Art<\/td><\/tr>
Fees<\/strong><\/td>0%<\/td>1.5% annual fee plus 20% fee at the time of sell<\/td><\/tr>
Minimum investment<\/strong><\/td>$1<\/td>$10,000<\/td><\/tr>
Target returns<\/strong><\/td>Varied<\/td>10-25%<\/td><\/tr>
Risk level<\/strong><\/td>High<\/td>High<\/td><\/tr>
Time horizon<\/strong><\/td>Varied<\/td>60+ months<\/td><\/tr>
Liquidity<\/strong><\/td>High<\/td>High<\/td><\/tr>
Available on<\/strong><\/td>iOSAndroidDesktop<\/td>Desktop<\/td><\/tr>
Do you have to be accredited?<\/strong><\/td>No<\/td>No<\/td><\/tr>
Best for<\/strong><\/td>Investors new to alternative assets who want to invest in art along with stocks and ETFs.<\/td>Investors serious about diversifying their portfolio by investing in fractional shares of blue chip art.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

What is Public?<\/h2>\n\n\n\n

Public is a social investing community platform that is trying to change how people invest. Founded in 2017, stars like Will Smith, Tony Hawk, and NFT star J.J. Watt have invested in the platform.<\/p>\n\n\n\n

You can invest in the stock market, ETFs, and cryptocurrencies on Public, as well as different alternative investments including art, NFTs, books, comics, sneakers, Birkin bags, and more. Each item offered on their platform has been vetted by the Public team and their network of advisors.<\/p>\n\n\n\n

In addition to investing, you can also monitor the investments of other users to learn from their investing strategies, including any other asset classes. Public also offers an extensive learning resource center to help you learn more about investing.<\/p>\n\n\n\n

How does Public work?<\/h4>\n\n\n\n

It\u2019s easy to start art collecting with Public. All you need to do is sign up, link your bank account, and fund your Public account. There are no account minimums. Public\u2019s collectibles are securitized through the SEC, which allows them to offer fractional shares of specific items. They take care of sourcing collectibles at auction houses and art fairs, as well as storage.<\/p>\n\n\n\n

You can buy fractional shares of any of its art or other collectibles directly on the Public app or from other users on their secondary market. You can manage and view a portfolio of all your assets on the app, from stocks to art. You can earn potential returns by either selling your shares on the platform or when Public sells the underlying asset.<\/p>\n\n\n\n

While Public doesn\u2019t offer as much physical artwork as Masterworks, you can purchase artwork from several well-known artists whose work tends to increase in value.<\/p>\n\n\n\n

For example, Public offers fractional art investing shares of Banksy\u2019s Police Car<\/em>. Prices of work by the famous and anonymous street artist have gone up in recent years, with his Love Is In The Bin piece selling for a record $25 million<\/strong> in 2021.<\/p>\n\n\n\n

Another work available on Public is Love Is What You Want by British artist Tracey Emin<\/strong>. The modern artist is a favorite at auction houses, with her work often going for over a few million, and her art piece My Bed going for a record $3.77 million<\/strong>.<\/p>\n\n\n\n

Who can invest with Public?<\/h4>\n\n\n\n

Anyone over the age of 18 can invest in art through Public. You need to be a U.S. citizen or permanent resident with a valid visa and a social security number. You also need to have a legal residential U.S. address. Investing by non-U.S. residents is not available at the moment.<\/p>\n\n\n\n

What is Masterworks?<\/h2>\n\n\n\n

Masterworks is an investing platform that specializes in offering fractional art investments. With Masterworks you can invest in a vast collection of contemporary art, including work by Andy Warhol, Banksy, and Jean-Michel Basquiat. The platform was founded in 2017 by Scott Lynn to make blue chip art more accessible to retail investors.<\/p>\n\n\n\n

The company offers an education research center on its website, with extensive data on the art investing world. It claims its proprietary pricing has over 60,000 data points to help art investors project returns and make informed decisions when investing in art.<\/p>\n\n\n\n

In addition to its primary market, you can also buy and sell fractional sales of art on Masterworks\u2019 secondary market.<\/p>\n\n\n\n

How does Masterworks work?<\/h4>\n\n\n\n

Masterworks sources and finds art worldwide, collecting pieces from advisors, art galleries, dealers, and auction houses. The company looks at several data points to determine if an artwork is worth buying, such as the artist\u2019s reputation, the historical appreciation rate for that style of work, and general demand for the artist\u2019s work.<\/p>\n\n\n\n

Just like Public does, Masterworks registers acquired artwork with the SEC, which gives them the ability to offer shares of the work. For a $10,000 minimum, investors can buy into masterpieces by Banksy, George Condo, Jean-Michel Basquiat, and many others.<\/p>\n\n\n\n

Masterworks takes a long-term approach to investing in art. Paintings are displayed at its members-only art gallery in New York City for at least three years, at which point the work is assessed to see if it\u2019s a good time to sell it or not. If there is interest, then a private collector can buy the artwork but any offer must be approved by shareholders. Once the artwork is sold, the proceeds are divided up among investors. If the painting isn\u2019t sold in seven years, then Masterworks may try to sell it through auction houses.<\/p>\n\n\n\n

Who can invest with Masterworks?<\/h4>\n\n\n\n

Anyone can invest in art with Masterworks, however, its secondary market is only open to U.S. residents. Non-U.S. residents can invest directly in art through Masterworks\u2019 primary market, but the company does not qualify offerings in any jurisdiction besides the U.S.<\/p>\n\n\n\n

Public perks and drawbacks<\/h4>\n\n\n\n
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