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$992 Billion in Art Could Change Hands. Why Are These 71,105 Investors Paying Close Attention?
Deloitte ran the numbers. They project UHNW art and collectibles wealth -- already at $2.5 trillion -- to hit $3.47 trillion by 2030.
The institutional world has been quietly preparing for this. Back in 2011, 25% of wealth managers surveyed offered art-related services. In 2024, 51%. Family offices now average a 13.4% allocation to art and collectibles. And it’s not just because they love art. It’s because they like the math.
These positions were built over decades through private dealer relationships most investors never had. The access just wasn't there.
Masterworks is changing that:
71,000+ investors
$1.3B deployed across 525+ artworks
29 closed sales
Net annualized returns like 16.5%, 17.6%, and 17.8%, not including those unsold.
Investing involves risk. Past performance is not indicative of future returns. See important disclosures at masterworks.com/cd.
Hey everyone,
Years ago I was sitting in a park in Beirut talking to a Lebanese general.
"Do you want to know how the Islamic State will end?” He asked me.
I didn't think this meeting would be about the Islamic State. Frankly, I didn't know why I was sent to meet a Lebanese general in a park in the Hamra neighborhood of Beirut, but that's a story for another email.
Of course I wanted to know how the Islamic State would end.
“The Islamic State is Frankenstein’s monster and everyone gave a piece to it. Iraq gave it the head, America gave it the heart, the arms come from Saudi Arabia, the legs come from Russia, it's eyes come from Turkey.
It ends when everyone takes their parts back."
I've never forgotten this analogy because I think it sums up how bad decisions lead to horrifying outcomes. Right now, the world is hard at work cobbling together monsters of collective making. The problem is, no one knows it.
As always, The Under Report is keeping its eyes on the assembly line.
Let's go,
Eric
P.S. I'll be landing in Lebanon to cover the war on the ground on June 22nd. We're still looking for financial support to stay safe while filming. If you'd like to help my team pay for helmets, bulletproof vests, drivers and translators we would be very grateful.
Bottom Line Up Front
Raúl Castro indicted as the US oil blockade runs Cuba dry, turning regime change into an extradition case rather than an invasion.
Iran makes a counteroffer and gets refused, leaving a US naval blockade, 8,000 Pakistani troops in Saudi Arabia, and a fracturing Israel to fill the vacuum.
Xi hosts both rivals in one week, building trade machinery with Trump and then standing beside Putin, positioning China as the hub each side needs.
Ukrainian drones gut Russian refining, knocking out roughly a tenth of capacity and dropping crude runs to 16-year lows, a blockade Kyiv runs from inside Russia.
Ebola crosses into Uganda after weeks of silent spread, and Washington answers a borderless threat by sealing the border.
1. Raúl Castro Indicted
What Happened: On May 20, federal prosecutors in Florida unsealed an indictment charging 94-year-old former president Raúl Castro and five others over the 1996 shootdown of two civilian aircraft. It landed as a US oil blockade ran the island completely out of fuel, triggering nationwide blackouts and pot-banging protests in Havana, and days after Washington sanctioned GAESA, the military conglomerate that runs the economy.
Why It Matters: An indictment reframes regime change as law enforcement. (You might remember this move from Venezuela). Now, its not about invading a country but about arresting a defendant. The effect is the same. This lowers the political cost of intervention, which is why the intelligence community is already modeling how Cuba would respond to a US military strike.
What We're Watching For:
If Castro is policed the same way Maduro was
The Russian tanker circling the island decides to run the blockade
A soft-launch of a new Cuban leader
2. Iran's Counteroffer Refused
What Happened: Iran routed a counterproposal to end the war through mediator Pakistan on May 18, and it went unaccepted. The US naval blockade imposed on April 13 stayed in place, with satellite imagery showing Iran's main Kharg Island oil terminal idle for over ten days.
Why It Matters: With diplomacy stalled, the vacuum filled with hardware. Pakistan, the same country brokering the peace, forward-deployed 8,000 troops, a fighter squadron, and an air-defense system to Saudi Arabia, and a drone struck near a UAE nuclear site. This ceasefire is a blockade holding a war in suspension. A strike anywhere will return the region to war.
What We're Watching For:
If Israel is able to coax the US back into the fight, in spite of no clear way to 'finish the job'
Saudi and UAE aggression (they have already leaked their participation in the war).
Pakistan's not-so-neutral stance changing. Iranian ships have docked at the port and its sent troops to Saudi
3. China Plays Both Sides
What Happened: In a single week, Beijing hosted Trump for a May 14-15 summit and then stood beside Putin on May 19-20. With Washington it banked a trade truce, new trade and investment councils, and commitments to buy US oil and farm goods, with a return Xi visit set for the fall.
Why It Matters: Same host, two rivals, six days apart. China pulled concessions from the US while handing Moscow a stage, and the Kremlin's readout of the Putin meeting pointedly left out Ukraine (but also stated it would sell drones to Russia). Beijing is positioning itself as the hub both sides are forced to route through.
What We're Watching For:
Whoever brings up Taiwan first, it's an elephant in the room that keeps getting bigger
If Chinese drones start showing up on Russian battlefields more than Iranian ones
What the US/China board of Trade actually looks like (if it's created)
Want to support independent analysis and journalism? Join the Under Report for full access. Here’s what full subscriptions are reading this week:
“Ukraine's Drone Blockade”
“The Threat With No Chokepoint”
Eric’s Tinfoil Hat prediction 👀
Why Eric chose this week’s podcast topic.
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