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Art prices are mostly correlated with global ultra-wealth creation

Scott Lynn · Masterworks: SaaS Wealth Going Into Picasso Paintings, 20x Returns? · Jun 17, 2020 · at 3:47

Scott Lynn, founder and CEO of Masterworks, discusses the macroeconomic drivers of fine art prices with Nathan Latka.

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“I mean, we think that our prices are Probably mostly correlated to global ultra wealth creation.”

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More from Scott Lynn

Assertion Contradicted

Lynn: Majority of created art has outperformed the S&P 500

“At least for the majority of art created, it's outperformed the S&P.”

Scott Lynn Jun 17, 2020 ▶ 2:59 Masterworks: SaaS Wealth Going Into Picasso Paintings, 20x Returns?

Assertion Contradicted

Lynn: Masterworks is first to fractionalize fine art ownership

“So we, so we're really the first company to fractalize ownership in great works of art.”

Scott Lynn Jun 17, 2020 ▶ 2:32 Masterworks: SaaS Wealth Going Into Picasso Paintings, 20x Returns?

Assertion Supported

The global art asset class is worth $1.7 trillion

“The total size of the asset class is 1.7 trillion dollars.”

Scott Lynn Jun 17, 2020 ▶ 2:48 Masterworks: SaaS Wealth Going Into Picasso Paintings, 20x Returns?

Assertion Supported

Lynn: 2019 Citi study proved art is uncorrelated with markets

“We did a research study with Citibank in, in, in 19 that concluded that it was also uncorrelated.”

Scott Lynn Jun 17, 2020 ▶ 3:04 Masterworks: SaaS Wealth Going Into Picasso Paintings, 20x Returns?

Assertion Not checkable as stated

Lynn: Masterworks raises over $6M–$7M monthly, growing 30%–40% month-over-month

“We're raising an excess of six million dollars, seven million dollars a month in capital growing by more than 30, 40% a month.”

Scott Lynn Jun 17, 2020 ▶ 6:29 Masterworks: SaaS Wealth Going Into Picasso Paintings, 20x Returns?

Assertion Not checkable as stated

Lynn: Blue-chip artists historically return between 8% and 30% annually

“These are three to seven year holds. But when you look at the performance of some of these artists overall, you know, we tend to see returns anywhere between eight percent a year and 30% a year.”

Scott Lynn Jun 17, 2020 ▶ 9:40 Masterworks: SaaS Wealth Going Into Picasso Paintings, 20x Returns?

Art prices are mostly correlated with global ultra-wealth creation

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