Do NFTs Make Good Long Term Investments?

Bored Ape Yacht Club NFTs
Bored Ape Yacht Club NFTs

I don’t think anyone can confidently answer whether NFTs (Non-Fungible Tokens) will make a good long term investment at this stage. NFTs are just too new of a concept to be able to back up an answer with hard data or to form a strong opinion one way or the other. As such, the long term value of NFTs are up in the air and they could prove to be a good store of value, the next big thing, or they could fizzle out and become worthless. 

My soft opinion at this stage is that the current popular NFTs projects will not hold any long-term value for collectors. This opinion applies to well-known NFT projects such as Bored Ape Yacht Club and CryptoPunks.

However, where I do see possibilities for NFTs, is when they are attached to fine artists who have already made a name for themselves. These NFTs may hold their value and even appreciate over the long-term, but the risk is still substantial in these cases.

Artists who have dabbled in NFTs

The Empresses Series by Damien Hirst

Damien Hirst released a set of limited-edition prints in 2022 called the The Empresses Series, in association with HENI Editions.

The Empresses Series

When purchasing an edition of the artwork (yet to be printed), you could request to have a physical print shipped to you, or you could ask for an NFT of the print. The NFT, basically acting as a receipt or proof of ownership, could then be redeemed for a physical print within two years of the release of the artwork. As an art investor, you can probably see why employing NFTs in this manner should be lauded. 

The primary purpose of offering the artwork as an NFT, was to facilitate investors who wanted to resell the artwork to a different investor without shipping a physical print (risking damage and high shipping costs). The new owner of the NFT could then request the physical print from the publisher, who would handle all shipping in a risk-free manner you would expect from a top-tier gallery. 

This NFT project would be perfect if the print-request time was a little longer, but overall, the concept is sound and should be something that improves liquidity and transportation of artwork.

Check out Masterworks, Public, and Yieldstreet and explore Art Funds that let you purchase shares in million-dollar paintings from blue chip artists like Banksy, Kaws, and Yayoi Kusama.

Read more: Review: Masterworks vs. Yieldstreet
Read more: Review: Masterworks vs Public

We welcome you to Contact Us with any questions you have about investing in art. Let us know your budget, the kinds of art that interest you, and we can work out a plan to get you started with art collecting the right way.