What the Heck Is StartEngine Collectibles?
In the 1960s, Andy Warhol created dozens of portraits of Marilyn Monroe – and in 2022, Christie’s sold one of those portraits for $195 million. Clearly, art and other collectors’ items have been a very lucrative investment for some, but until recently, it was out of reach for most. After all, there was effectively no such thing as buying a well-regarded piece of art even for, say, $1,000. As for purchasing a Honus Wagner trading card for $7M or one of Warhol’s Black Marilyn lithographs for $400,000? Forget about it. Totally unrealistic for most people. So, how to bring access to this great investment opportunity to the general public?
Enter equity crowdfunding.
StartEngine and similar broker-dealers have already enabled everyday people to invest in privately held and early-stage companies. The next opportunity we’re unlocking? Collectibles. These can include famous pieces of art from the likes of Warhol; they can also be fine wines, trading cards, watches, and more. And until today, many investors were shut out from these assets because of their sky-high price tag. That’s why now, we’ve created a platform where you can purchase shares of these items, similar to how you’d buy shares of a company.
Why invest in Collectibles?
The returns can be very interesting. According to the PWCC 100 index* trading cards have on the whole outperformed the S&P 500 in the last 12 years. Similarly, per Entrepreneur and VinoVest, the fine wine market has outperformed most global equities and is less volatile than gold; it’s also seen a 13.6% average annualized return over the past 15 years.
A new avenue for diversification. The average investor has long had access to public stocks, mutual funds, ETFs, and bonds sold on the broader market. Following the advent of equity crowdfunding, the general public can allocate a portion of their investments toward private equity too. Now, collectibles represent an exciting new frontier and alternative to traditional securities, particularly in times of market volatility.
Who would have thought you could own shares of a portrait by Picasso? Well, now this possibility can be a reality.
*Please note that these are historical returns for the sports card market as a whole, based on research conducted by PWCC, and do not reflect the value of or potential returns on any individual collectible.