Fractional Art - A new market
Market Accessibility with fractional art: The advent of online art platforms and fractional ownership models has increased accessibility to the art market. This accessibility allows a broader range of investors to participate, contributing to the market's growth and potential returns.
Fractional Art Market:
The fractional art market involves dividing ownership of an artwork into fractional shares, allowing multiple investors to collectively own and invest in high-value artworks.
Fractional ownership platforms provide investors with the opportunity to purchase fractional shares of artworks, enabling broader access to the art market.
Benefits of Fractional Art Investment:
Fractional art investment allows investors to diversify their portfolios by investing in high-value artworks that may have been inaccessible otherwise.
It offers the potential for capital appreciation, as investors can benefit from the value growth of the artwork over time.
Market Growth and Adoption of Fractional Art:
The fractional art market has experienced significant growth in recent years, driven by increasing demand for alternative investment opportunities and the desire for art ownership.
According to the Hiscox Online Art Trade Report 2021, 32% of surveyed galleries reported an increase in interest from clients wanting to invest in fractional ownership of artworks.
Online Art Market and Fractional Art:
The online art market has facilitated the growth of the fractional art market, providing platforms where investors can discover, invest, and trade fractional shares of artworks.
Online platforms specializing in fractional art investment have emerged, offering curated selections of artworks and streamlined investment processes.
Increased Accessibility and Market Expansion:
The online art market has made art investment more accessible to a wider audience, allowing investors from different geographic locations to participate in the fractional art market.
The Hiscox Online Art Trade Report 2021 noted that 65% of surveyed collectors felt more confident buying art online, with the availability of information and transaction data contributing to increased trust.
Market Transparency and Due Diligence:
Fractional art investment platforms often provide comprehensive information about the artwork, including provenance, valuation, and market research, enabling investors to make more informed decisions.
Investors are encouraged to conduct due diligence, review the platform's terms and conditions, and consider the reputation of the artwork and platform before investing.