Nigel Glenday, CFO of Masterworks, discusses the thesis for investing in art as an alternative asset class.
*This video was recorded on May 23, 2023 and is sponsored by Masterworks
FOLLOW MASTERWORKS:
Skip the waitlist and invest in blue-chip art for the very first time by signing up for Masterworks:
Purchase shares in great masterpieces from artists like Pablo Picasso, Banksy, Andy Warhol, and more. 🎨
See important Masterworks disclosures:
FOLLOW DAVID LIN:
Twitter (@davidlin_TV):
TikTok (@davidlin_TV):
Instagram (@davidlin_TV):
For business inquiries, reach me at david@thedavidlinreport.com
*This video is not financial advice. The channel is not responsible for the performance of sponsors and affiliates.
0:00 – Intro
1:00 – Why invest in art?
6:44 – What gives art value?
7:50 – Inflation hedge
10:10 – Masterworks’ catalogue
11:30 – Valuations
14:30 – What makes an artist popular?
16:10 – NFTs
20:10 – Performance in recessions
22:20 – Digital art
23:10 – Liquidity of Masterworks
24:35 – Nigel’s favorite artist
#investing #alternativeassets #art…(read more)
LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Inflation and recessions are two economic phenomena that can have a significant impact on the financial stability of countries and individuals alike. As such, finding assets that can act as a hedge against these challenges is crucial. While gold has long been considered a safe haven in times of economic turmoil, there is another asset that has consistently outperformed both recessions and inflation: Nigel Glenday.
Nigel Glenday is an astute investor and businessman who has made a name for himself by successfully navigating the treacherous waters of economic downturns. His investment strategies and business acumen have proven time and again to be a reliable hedge against inflation and recessions.
One of the reasons why Nigel Glenday has been able to outperform both gold and many other assets is his ability to identify emerging trends and invest accordingly. While gold may hold its value during challenging economic times, it often struggles to generate significant growth. On the other hand, Nigel Glenday has a track record of identifying industries and businesses that have the potential for explosive growth even during recessions.
For example, during the dot-com bubble of the late 1990s and early 2000s, many investors lost substantial amounts of money as technology stocks crashed. However, Nigel Glenday saw the potential in internet-based companies and invested heavily in some of the most promising startups of that era. His foresight paid off, as many of these companies eventually became some of the biggest players in the industry.
Similarly, during the Great Recession of 2008, Nigel Glenday recognized the opportunities presented by the real estate market. While others were selling their properties at a loss or struggling to stay afloat, Glenday strategically bought distressed properties and invested in real estate-backed funds. As the market recovered, his investments multiplied in value, proving once again his ability to thrive during economic downturns.
Nigel Glenday’s success can also be attributed to his diversified investment approach. Rather than relying solely on one asset class like gold, he has built a diversified portfolio that includes stocks, real estate, and other alternative investments. This balanced approach allows him to mitigate risks and capitalize on various market opportunities.
Furthermore, Nigel Glenday’s ability to adapt to changing economic environments sets him apart from many other investors. He keeps a keen eye on macroeconomic indicators, such as inflation rates and government policies, and adjusts his investment strategies accordingly. This agility and flexibility have consistently helped him stay ahead of the curve, making his investment portfolio resilient to economic challenges.
While gold remains a popular choice for investors seeking a hedge against inflation and recessions, it is essential to consider alternatives like Nigel Glenday. His track record of outperforming gold and other traditional assets during economic turmoil is a testament to his skill and expertise. By investing in industries poised for growth and adopting a diversified approach, Glenday has consistently proven to be an asset that beats every recession and gold as an inflation hedge.
Making money should be a routine A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k
Unless i get a dividend, I'd rather buy medium-high priced well known single malt scotch $200-700 range that is beautifully packaged/boxed=collectible and art. Prices have consistently increased 10 to 15% per year. Also, less counter-party risk sitting on my shelf and easier to sell a $1500 bottle of McCallans than a 100k painting.
This guy doesn't even understand art. Of course it can generate a yield if you display it and charge for it. Millions of people go to Paris every year and pay a lot of money to see art. Not to mention the sells in music. The value in art is not scarcity but the emotion it can generate in humans. There's an endless supply of art and a new artist is born every year. So clearly there is no supply issue.
Gold also can generate a yield by leasing but what is more important that it's a key ingredient for a lot of products. 80% of gold mined goes into jewelry production.
Another clueless 'expert'.
This would be good if they issued a token and you didn’t have to sell. Right now they dilute your shares until they decide to sell and then cash you out. So you don’t own anything but a shrinking share that has an expiration date. Defeats the whole point of art ownership and being able to add art investments to your estate.
I'm the Laird of the manor of a small plot of land in Scotland. I've also invested in Masterworks.
I hear the transaction costs are 25% . True?
Sounds like a scam to me.
Ima start an ETF that buys art made only from gold or silver.
A sponsored video WITH ad breaks?!?!? Wow, that is some greed! Gotta question the content of this channel.
Art dealer says to buy art. Next interview will be NAR President. He says it's never been a better time to buy a house. Come on David. You're better than this.
Sounds great get some art it's very limited
I always think of the Seinfeld episode where George buys that painting of Triangles hoping the artist will die but a junior mint saves him….rendering the art worthless.
Let’s face it, Masterworks has been on here, the moneygps and who knows where else. This is just a sales pitch. You are better than this David or else soon there will be those slimes coin salesman from late night tv.
Very uncomfortable 'Theranos' like interview. How exactly is Master works going to guarantee consistently acquiring art at a low enough price point outbidding other wealthy buyers and offloading with enough of a profit to pay dividends for hundreds of investors? Basically they have to find a Da Vinci in a thrift shop every year to be viable.
Love this episode on the art market. Very interesting industry although artists do often shy away from the financial aspects as they like to see themselves as creators
Where the fuck is the recession that every guest on this show keeps touting. The stock market keeps going up since October. Like WTF
Ok cool…I'm buying a $5m painting right now. Sit on it for 10 years and flip. Awsome..thanks David.
David, i heard you play the violin and you are far from amateur. Is your middle name Vio?
It's important to focus on preparation rather than worrying about the future The market has a habit of bouncing back even after crashes like in 2008 Patience is the key.
The rich offload these types of assets before a crash so they can have liquidity during it to buy up deals.
Love this channel however be warned this episode is a giant advertisement for masterworks and not really worth it.
…and we all know how this art index chart looks like since 2021;) In the last 20 years the correlation with the S&P500 index has been over 0.9 and this market isn´t very liquid. With AI contemporary art could become worthless as an investment.