The art investment world is changing. Once a closed shop open to only a select few the art world is becoming much less elitist. According to AXA, young art collectors comprise around a quarter of all collectors whilst the 2019 US Trust Insights on Wealth & Worth found that 27% were millennials. It is not just the buyers who are changing but also the way in which the art market serves these clients.
As well as changing the art investment world is also growing. In 1988, the Artnet Price Database tracked only 18 auction houses and about 8,300 artists. Today these figures have skyrocketed with 1,800 auction houses and 340,000 artists. This is driven by the demand for original pieces from both the public and commercial companies who want “something different”.
Entrepreneur, Matthew Navin, founded Pictorum in 2018 after recognising the paradigm shift in the market and has developed a solution that is matched to the needs of today’s investors, artists and buyers.
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Evidence suggests that millennials are now more likely than other generations to see art as a financial asset and part of a wealth-building strategy. According to the 2018 US Trust Insights on Wealth and Worth 33% of millennial collectors agreed with the statement that ‘art is an asset that can be leveraged to build wealth’ versus only 16% of collectors overall. Pictorum was developed to take advantage of this marketplace shift and support this new wave of potential investors as a part of their portfolio.
Matthew said: “Art investment has, traditionally, been the domain of those who have experience in the art world with considerable sums to invest. If you are not part of this inner circle art investment is an incredibly daunting prospect. This is a shame as art offers not only good returns but also the excitement of being involved in the art scene.”
Pictorum’s unique business model is as an incubator for emerging artists where Pictorum manages the artists’ work much as a record label manages a singer. This is supported by the investors, which Pictorum attracts, who can be involved in one piece or a number of pieces. Pictorum then manages each artist’s portfolio through a planned exposure programme which includes its own gallery in London, on-line, through art fairs and personal viewings.
However, Matthew is keen to explain his conservative approach to working with artists and investors: “While we see ourselves as a disruptor in the art world we are very conservative in our dealings both with our artists and investors. We are very explicit with the artists who sign up to us and agree how we will work together, timelines and responsibilities. This conservative outlook is even more apparent with our investors. We strongly recommend that any initial investment in art should only be a small part of their overall investment strategy and that they clearly understand the timescales and risks involved in any investment.”