Sunday, 20 May 2012

Why Liquid Rarities?


Exclusive Patent Rights

LRE will license its patent(s) to a limited number of qualified investment companies based on prior fund performance and standing with the SEC.


As a Whole, Rarity Investments Consistently Outperform the S&P500

Historically, “The art market outperforms equities”, According to recent research by Mei Moses®;

Annual art index values outperformed the S&P 500 Total Return Index for equities between 2000 and September 2011. Economic uncertainty is creating more interest for tangible assets, where art, particularly at the high end of the market, is increasingly being viewed as a ‘store of value’.

It must be noted that LRE includes all classification of collectables and rarities. In the past, investments in collectables and rarities were made by High-Net-Worth individuals (HNWI's) and in the form of private placement Reg D's.  LRE for the first time allows the general public to invest in all forms of collectables and rarities in fractional shares.  LRE investment funds will be SEC registered.


Increased Market Exposure and Liquidity for Rarity Investments

Prior to LRE investments in investment grade “art assets” were made by a limited number of High-Net-Worth individuals in the form of private placements Reg D’s or purchased individually.  The Liquid Rarity Exchange allows the common investor to invest in investment-grade collectables in fractional shares.  Providing millions of potential public investors with the ability to invest in what once was financially limited to HNWI’s creates greater market exposure and increased liquidity for every rarity fund asset.


Inceased Transparency

LRE investment-grade rarity funds will be registered with the SEC and sold to the public as fractional shares.  Prior to LRE, investment-grade rarity funds where and still are, offered through various Reg D's. These "Art fund" Reg D's are preferred investments made by High-Net-Worth-Investors (HNWI'S), but lack liquidity, disclosure and transparency.  “Art Assets” funds managed registered with the SEC and managed in collaboration of expert appraiser dealers allows qualified financial managers to greatly benefit from this new “Art Asset” class of investments.  Only a selected few investment firms with experience in alternative type of investments will be granted licensing rights.  LRE for the first time allows the general public to financially benefit from what once was thought of as an investment, only made by "wealthy hobbyist".