Investors trade all sorts of things, from stocks and bonds to grains and pork bellies.
But thanks to a new stock exchange in Liechtenstein, now they can trade something new:
Bacon.
Today I’ll tell you why trading Bacon can be so exciting and profitable...
And explain how you can get in on the action for as little as $100.
(By the way, this isn’t about the kind of bacon you can eat!)
The Greatest Store of Wealth
To set the stage here, it's important to keep something in mind:
In turbulent markets like the one we're currently experiencing, the wealthy have always found ways to protect and grow their wealth. For example, they invest in luxury apartments in New York or London, or in gold.
But recently, they've been turning to something new: art.
The CEO of asset manager BlackRock calls art "one of the greatest stores of international wealth." The thing is, BlackRock has about $10 trillion in assets under management. It’s literally the world's largest asset manager. So when its CEO makes a claim like this, it pays to listen up.
Three Reasons Why the Wealthy Invest in Art
There are three main reasons art can be such a powerful investment.
For starters, it provides diversification. In other words, even if the stock market crashes, art can continue to gain in value.
Furthermore, art offers a hedge against inflation. In inflationary times like we're in today, that's a valuable trick.
But perhaps most important of all, art can provide market-beating returns. For example, since 1995, one popular art index has outperformed the broad-based S&P 500 by nearly 3x.
These benefits help explain why, according to the Knight Frank Global Wealth Report, 37% of individuals worth at least $30 million invest in fine art.
But now, art isn't just for the super-wealthy anymore...
Introducing: Artex
In the past, I’ve introduced you to online platforms where investors like you can get access to fine art and collectibles, often for as little as $100.
These platforms include Masterworks, Rally, and Otis.
But today, we’re looking at something new. It’s called Artex.
Artex is an innovative stock exchange based in Liechtenstein. Essentially, it gives ordinary investors like us the ability to buy and sell shares of famous pieces of art, just like we’d trade shares of stock on the NYSE or Nasdaq.
The company will take these artworks public in Initial Public Offerings (IPOs), similar to how a bank would take a tech startup public.
This is an audacious undertaking, but Artex has the right team to pull it off…
Backed by a Prince & a Picasso
The company ranks high on legitimacy.
For starters, it was founded by these two gentlemen:
On the left is Prince Wenceslas. (Yes, he’s really a Prince; he’s the Prince of Liechtenstein.) The Prince is the former CEO of global investment management firm Dalton S.P., and he previously worked for major financial institutions including Goldman Sachs and GE Capital.
On the right is Yassir Benjelloun-Touimi. Yassir has over 20 years of banking experience, including setting up ventures that were similar to Artex for BNP Paribas and UBS.
And of course, what would an art platform be without a Picasso on board?
Diana Widmaier Picasso, Pablo Picasso’s granddaughter, is Artex’s Art Historian and Curator.
And what have these Princes & Picassos chosen for their first IPO?
An IPO for Bacon.
Three Studies of George Dyer
More precisely, the IPO is for a famous work of art from Francis Bacon.
The piece is a triptych — in other words, it’s three related paintings. It’s called “Three Studies for a Portrait of George Dyer.”
George Dyer was Bacon’s lover and muse. The two had a stormy relationship which ended in tragedy: Dyer killed himself just days before an important retrospective for Bacon at the Grand Palais in Paris.
The series was created in 1963, and was previously owned by Roald Dahl, the author of classics including James and the Giant Peach and Charlie and the Chocolate Factory, as well as the screenplay for the James Bond movie, “You Only Live Twice.”
Loic Gouzer, the auction house Christie’s Deputy Chairman of Postwar and Contemporary Art, said the triptych exemplified “the dynamism and complex psychology” for which Bacon was revered.
As he added, Dyer is “arguably the most important model of the second half of the 20th century, because Dyer’s persona as well as physical traits acted as a catalyst for Bacon’s pictorial breakthroughs. The Francis Bacon that we know today would not exist without the transformative encounter that he had with George Dyer.”
The IPO… and What Comes Next
Artex expects the $55 million IPO to take place before the end of this year.
All investors, regardless of income or net worth, can buy shares for around $100 apiece. And since shares will trade just like stock, investors can sell their investment if they need the cash.
Then, if a private collector or museum wants to buy the piece in the future, it will need to offer at least a 20% premium to the average closing price of the shares over the prior twenty trading days. And, of course, a rival bidder could then step in and offer even more.
By early next year, Artex plans to hold IPOs for new pieces of art each month. And by 2025, it expects to IPO two works of art each month.
The company believes its pipeline will come from private collectors looking for a less expensive alternative to selling through auction houses like Sotheby’s and Christie’s, which charge up to 20% commissions. In contrast, Artex takes 3% of IPO proceeds, plus a small fee when shares change hands.
Get Started with $100
As noted earlier, with Artex, you don't need millions of dollars to invest. You can get started with as little as about $100.
But keep in mind, all the typical caveats about investing apply here. For example, don't invest more than you can afford to lose; invest in what you know; and be sure to dip your toe into the water before diving in.
Furthermore, since the Bacon is the first piece Artex is listing, there’s no track record we can point to about what will happen next. So don't invest your rent or grocery money here.
But if you're looking to invest like the rich – and you love Bacon – Artex might be a great place to start.
To learn more and register for Artex, start here »
Best Regards,
Founder
Crowdability.com
