Collectable, Masterworks, and Ember: 3 Intriguing Platforms for Fractional Alternative Investments

Collectable, Masterworks, and Ember: 3 Intriguing Platforms for Fractional Alternative Investments

Daniel Hall 17/05/2023
Collectable, Masterworks, and Ember: 3 Intriguing Platforms for Fractional Alternative Investments

The first few years of this decade have been tough for finance.

Between the Covid-19 pandemic, supply chain disruptions, international conflicts, unemployment fluctuations and trade deficits, the situation hardly feels stable for investors. At present, markets are bearish, inflation rates are seeing record-breaking annual increases, and trust in conventional investment systems is at an all-time low.

In this period of doubt, investors are turning to alternative investments in order to diversify their portfolios and create new options. Instead of investing in the stock exchange or other traditional asset classes, people are looking to alternative investments as a new way of surviving through bear markets.

Collectable, Masterworks, and Ember are three platform companies that focus on alternative asset classes, allowing people to invest in sports memorabilia, fine art, and luxury real estate, respectively. What sets these businesses apart from others is that they offer the ability to fractionally invest in these alternative assets.

Providing flexibility and accessibility, these three companies are currently leading the alternative investment space. Let’s dive into exactly how each provides a unique investment experience for those looking to diversify out of traditional finance. 

Collectable for Fractional Sports Memorabilia Investments

8 Characteristics of a Good Investment Property

The sports memorabilia market soared over $35 billion in 2023, currently growing at a CAGR of 21.8%. At the current pace that this market is expanding, it’s set to reach over $227.2 billion by 2032, demonstrating the incredible value that this industry could have to investors. Recognizing that value, Collectable was formed to offer users the ability to invest in sports memorabilia.

Collectable is a world-leading collectibles exchange, currently having over $50 million in transactions. Focusing specifically on sports memorabilia like baseball cards, collectible postcards, signed photos, and more, they allow investors to fractionally invest in assets they’re interested in.

Collectable boasts an impressive ROI record, with over 60% return on exited assets being the average for the company. Considering users can get started by investing as little as $5, it’s a way for absolutely anyone to get involved in this booming alternative investment stream. Investors can hold their shares, trade them, or exit an investment if they’re offered a price that’s attractive to them.

The sports memorabilia industry is one that’s set to explode over the next decade. By securing fractional shares of some of the most exciting items in this industry, investors are able to get in on a growing market that is completely independent of traditional investing. Sports memorabilia is a phenomenal alternative investment with exciting future prospects.

Masterworks for Fractional Fine Art Investments

Fine art is one of the most dynamic industries in the world, regularly seeing valuations and sales for millions of dollars. At present, the fine art industry is currently worth around $68 billion, with this figure growing year after year. Masterworks allows investors to fractionally buy into pieces of fine art, offering shares of some of the most important artists in history.

Masterworks locates some of the most interesting and valuable pieces of art within the fine art world. From there, after securitizing each item of artwork as a dedicated holding company with the SEC, they then offer fractional shares of the complete piece. Investors can get started with reasonable minimum buy-ins, acquiring percentages of artworks. Some of the leading investments hosted by Masterworks have been upwards of 89% growth rate, demonstrating how frenetic the art industry can be.

Art has outperformed traditional investment strategies frequently over the past few decades, especially in periods of uncertainty. With globally renowned artists like Banksy, Cecily Brown, and Andy Warhol in their portfolio, Masterworks can be a phenomenal opportunity for those looking to diversify.

Contemporary art has a low loss rate, a high margin of opportunity, demonstrating high returns time and time again. With a low correlation to other markets, art is often cited as a recession-proof investing strategy that people are now turning to in droves. 

Ember for Fractional Luxury Real Estate Investments

Private Banking Luxury

The current global economy and state of the US housing market, in particular, have led many younger people to believe that they will never own a home. Property prices in the USA reached an all-time high in June of 2022, while wages have only marginally risen in the same period of time. Ember sets to change the notion that owning a home is impossible by offering fractional investments in luxury properties.

Ember allows investors to buy a fraction of the house and use it for that equivalent time. This is especially effective for investors who are looking to secure a holiday home, as they would only need it for a fraction of the year. Unlike timeshares, investors are the actual owners of their portion of the house, making this an effective long-term investment.

The housing market has famously offered attractive returns, making partial home ownership through Ember an effective investment. Beyond just generating ROI, the ability to rent properties out to others, or to live in the house for the amount of time an investor buys, gives a real-world benefit to this alternative investment.

Much like the other fractional investment options on this list, Ember allows investors to buy houses in one-eighth increments. Ember is currently pioneering the co-ownership market in the US, promoting a unique and effective way of entering the real estate market and securing a holiday home for the weeks an investor would like.

Final Thoughts

As current markets continue to underperform and investor doubt grows, alternative investments are quickly becoming more popular. By investing in less traditional asset types, investors can diversify their portfolios and reduce exposure to fluctuating markets. Especially in the case of Ember, Masterworks, and Collectable, which offer fractional shares, it’s now easier than ever before to enter alternative streams.

Whether people are looking to diversify their portfolios or simply admire the impressive returns that other investment streams offer, the alternative market is currently booming.

 

Disclaimer: This article is for informational purposes only and does not constitute a recommendation or investment advice. You should not construe any such information or other material as legal, tax, investment, trading, financial, or other advice. Please seek a professional financial advisor before making any investment decision. We are not responsible for and do not endorse or accept any responsibility for the availability, contents, products, services or use of any third party website as stated in our privacy policy.

Share this article

Leave your comments

Post comment as a guest

0
terms and condition.
  • No comments found

Share this article

Daniel Hall

Business Expert

Daniel Hall is an experienced digital marketer, author and world traveller. He spends a lot of his free time flipping through books and learning about a plethora of topics.

 
Save
Cookies user prefences
We use cookies to ensure you to get the best experience on our website. If you decline the use of cookies, this website may not function as expected.
Accept all
Decline all
Read more
Analytics
Tools used to analyze the data to measure the effectiveness of a website and to understand how it works.
Google Analytics
Accept
Decline