The 15 Best Alternative Investment Platforms For Collectibles

Investing in collectibles can be a great way to diversify your portfolio and generate returns, but it can also be difficult to know where to start. To make the process easier, we've evaluated 15 of the best alternative investment platforms for collectibles like art, wine, and sports cards. We'll break down each platform's advantages so you can quickly find out which one is right for your needs.

The RealReal

The RealReal is an online luxury consignment marketplace that specializes in the authenticated consignment of luxury and high-end fashion items, including clothing, accessories, jewelry, watches, and home decor. Trading on NASDAQ, the company has raised $357 million and IPO'd in June 2019.

The platform has a wide selection of products from top designers such as Gucci, Chanel and Louis Vuitton. The company provides free shipping on orders over $99 in the US and Canada. Additionally, they offer a 30-day return policy with no restocking fees or hidden charges. However, buyers must pay a commission fee of 30-40% when selling items through The RealReal.

Heritage Auctions

Heritage Auctions is a global leader in the auction business, with over $670M in annual revenue and offices located around the world. They specialize in rare coins, currency, stamps, comics, sports cards and memorabilia.

The platform offers buyers access to an extensive selection of items from all categories at competitive prices. The bidding process is straightforward and secure; users can bid online or by phone for any item they are interested in purchasing. Additionally, Heritage Auctions provides free shipping on orders over $100 and has no minimum purchase requirement. Fees vary depending on the type of item purchased but generally range between 10-20%. Overall, Heritage Auctions is a great option for buying collectibles at reasonable prices.

Masterworks

Masterworks is an investment platform that allows users to purchase shares of high-value artwork, such as paintings and sculptures, from renowned artists like Monet and Picasso. It aims to democratize the art market by providing access to art investments that were traditionally limited to wealthy collectors and institutions. Founded in 2017, they have raised $110 million.

Through Masterworks, investors can purchase shares in famous artworks by renowned artists such as Claude Monet, Andy Warhol, or Banksy. The platform acquires the artworks and files them with the U.S. Securities and Exchange Commission (SEC) to create a publicly traded investment vehicle. Investors can then buy and sell shares in these artworks on the platform's secondary market.

The minimum investment amount is $20,000 USD with a 1% annual fee for the management of the artwork. Masterworks also offers fractional ownership of pieces so investors can diversify their portfolios without having to pay full price for each piece. The downside is that there are no guarantees on returns or liquidity since it's not a publicly traded asset class yet. Additionally, Masterworks does not offer any tax benefits or deductions at this time.

Yieldstreet

Yieldstreet is an online investment platform that offers alternative investments to accredited investors. It provides access to asset-backed investments such as real estate, litigation finance, marine finance and art finance that generate attractive yields and potential returns. It has raised $728 million.

The minimum investment amount for Yieldstreet is $5,000 per offering. The fees are typically 1-2% of the total investment amount plus a performance fee of up to 20%. Pros include diversification into alternative assets with low correlation to traditional markets and high returns on some offerings. Cons include illiquidity since most offerings have lockup periods ranging from 6 months to 5 years and lack of transparency in terms of underlying assets.

Republic

Republic is an investment platform that allows anyone to invest in startups, real estate, and crypto assets with as little as $10. It has been around since 2016 and has raised over $214 million. Through Republic, individuals can invest in startups and projects through a crowdfunding model, where multiple investors pool their funds to support a particular venture in exchange for equity.

The pros of Republic include its low minimums for investing ($10) and the fact that it offers a wide variety of asset classes such as startups, real estate, and crypto assets. Additionally, Republic does not charge any fees on investments or withdrawals. The cons are that there is no guarantee of returns on investments made through the platform; also, some users have reported difficulty navigating the website due to its complexity.

Artsy

Artsy is an online platform that connects art buyers and sellers from around the world, providing access to millions of works from galleries, museums, and independent artists. It has raised over $100 million.

The Artsy platform offers a wide range of benefits for both buyers and sellers. For buyers, there are no minimums or fees associated with purchases; instead they offer free shipping on all orders over $50 USD. Additionally, Artsy provides detailed information about each artwork including provenance history and condition reports which helps ensure authenticity. Artsy charges a commission fee of 10-20% to the sellers but provides marketing support such as email campaigns and social media promotion to help drive sales.

Rally

Rally is an investment platform that allows users to invest in fractional shares of luxury items such as rare cars, fine wines, and collectible sneakers. It allows individuals to invest in and own shares of valuable items that were traditionally out of reach for many investors. It has raised $109 million.

On the Rally platform, users can browse and invest in a diverse range of collectibles, including sports memorabilia, trading cards, vintage cars, rare coins, art, and more. The minimum investment amount for Rally is $50 per item and there are no fees associated with buying or selling on the platform. The main benefit of investing through Rally is that it provides access to a wide range of unique assets which may not be available elsewhere. However, due to the nature of these investments, they can be quite volatile and difficult to value accurately so investors should do their own research before making any decisions.

Vinovest

Vinovest is an investment platform that allows users to invest in fine wines from around the world. It offers a variety of services, including portfolio management, storage and insurance for wine investments. It has raised $63 million.

The main advantages of using Vinovest are its low minimums ($500) and fees (1-2% annually). Additionally, they provide access to rare wines not available on other platforms. On the downside, their selection is limited compared to some competitors and their customer service can be slow at times. Overall, Vinovest provides a great way for investors to diversify their portfolios with alternative assets like fine wine.

Catawiki

Catawiki is an online auction platform that specializes in collectibles and antiques from all over the world. It was founded in 2008 and has since grown to become one of Europe's largest auction sites, with $23 million raised.

The main benefit of Catawiki is its wide selection of items, ranging from rare coins to vintage cars. The company also offers a variety of payment options, including PayPal, credit cards, and bank transfers. Additionally, it has low minimums for bidding on items – just €1. However, there are some drawbacks; buyers must pay a fee when they win an item (usually 10% or more) as well as shipping costs if applicable. Overall though, Catawiki provides a great way for collectors to find unique pieces at competitive prices.

Wefunder

Wefunder is an equity crowdfunding platform that allows investors to invest in early-stage startups and small businesses. It was founded in 2012 and has since helped raise over $22 million for more than 500 companies.

The minimum investment on Wefunder is just $100, making it accessible to a wide range of investors. The fees are also relatively low compared to other platforms, with the company taking 5% of any successful investments made through its platform. On the downside, there's no guarantee that you'll get your money back if the startup fails or doesn't reach its goals. Additionally, some of the investments may be too risky for certain types of investors.

Art Money

Art Money is a financing platform that aims to make art more accessible to a wider audience by providing interest-free loans to individuals for purchasing artwork. It allows collectors and art enthusiasts to spread the cost of artwork purchases over time, making it easier to acquire pieces they desire. It has raised $20 million.

Through Art Money, customers can apply for loans to cover the purchase price of artworks from participating galleries and art fairs. The platform offers a wide selection of artworks from emerging and established artists, as well as access to exclusive events and experiences. The minimum purchase amount is $1,000 USD which may be too high for some buyers but makes sense given the nature of the products being sold. Additionally, there are no fees associated with using Art Money's services other than a one-time setup fee and interest on the loans.

Liv-ex

Liv-ex is an online trading platform for fine wine, offering a range of services to merchants, collectors and investors worldwide. Founded in 1998, Liv-ex has grown into the world’s largest marketplace for fine wine with over £100M in annual revenue. They have not announced any venture funding.

The main benefit of using Liv-ex is its liquidity; it offers buyers and sellers access to a large pool of potential trades which can be completed quickly and securely. The minimum investment amount is £500 per transaction, making it accessible to most investors. When a trade occurs on the platform, a commission fee is typically charged as a percentage of the transaction value.

Otis

Otis is an automated investment platform that allows users to invest in a portfolio of stocks and ETFs with as little as $1. Otis was founded in 2018 and has since raised over $17 million from investors.

The main benefit of using Otis is its low minimum balance requirement, which makes it accessible to almost anyone interested in investing. Additionally, the platform offers a variety of features such as automatic rebalancing, tax-loss harvesting, and fractional shares. The fees for using Otis are also relatively low compared to other platforms; they charge 0.25% annually on all accounts up to $10K and 0.15% on accounts above that amount.