Invest in Fine Art?
Start your portfolio with as
little as £2,000.00
Lowest acheived realised
growth by Pictorum Advisory clients
Average realised profit for
Pictorum Advisory clients
What motivates people to invest in art?
Source : Deloitte
THE ART MARKETS HISTORICAL RESILIENCE
An economic recession usually leads to measures that seek to stabilize falling demand and prices, such as lowering interest rates to faciliate and increase consumer spending. In a recessionary atmosphere stock market prices naturally adjust downwards until demand is matched or output descends. The art market, conversely, reacts to a recession by diminishing availability due to potential sellers of art holding on to their possessions feating not being able to secure fair prices.. Recessions therefore lead to a contraction in the (uppermost) art market supply and thus to the preservation of values.
The Great Depression
During the Great Depression of 1929, Albert Barnes timed the sale of his pharmaceutical business to start investing in art. Since 1911, he amassed a remarkable collection through timely transactions. In 1913, he acquired Picasso's “Peasants and Oxen" for $300, and he picked up dozens more canvasses for a dollar a piece. Through dogged persistence, Barnes put together 69 Cézannes-more than all the museums in Paris - as well as 60 Matisses, 44 Picassos, and 181 Rer irs in his own art investment fund. The 2,500 items in the collection are estimated to be woth between $20 and $30 billion today.
World War II
Between 1942 and 1945, the French auction house Drouot sold 24,500 paintings. Prices sharply increased 200% in 1941 and peaked at 552% in December 1942. Values remained almost the same until February 1943. This period was followed by a decline of 253% in November 1943 for a market correction. Art prices resumed it's rising trend to end of June 1944.
'2000 Dot Com' Bubble
When the 'dot com' bubble collapsed in the early 2000s, equitieqs went into a fairly long and painful bear market. By contrast, the art market saw only a moderate decline in 2001 and gains in each of the years on either side of it, such that it delivered a positive return for the three-year stress period as a whole.
The low votality of art (particularly postwar and masterpieces) was accurately demonstrated during the 2008 recession when the S&P abruptly dropped 37.5%, art indexes only dropped 4.5%.
Since then, art has increasingly been regarded as a value-preserving asset class highly attractive to investors who wish to diversify their portfolio, particularly during times of uncertainty.
ART MARKET RESILIENCE IN 2021
Against the backdrop of the global Coronavirus pandemic, the events of 2020 brought on adverse effect on the global economy, but the art market remained strong.
ONLINE-ONLY AUCTION SALES
+540% increment ($1.2 billion)
Pictorum Art Advisory is part of the Pictorum Art Services Group. At Pictorum Capitis, our fine team of in-house experts specialise in offering all levels of art advisory. Whether you are at the start of your art collecting cycle or already an avid collector, we are here to provide the assistance needed to help you to take the best next steps.
Access to Exclusive
No Art Knowledge
At Pictorum Capitis we help clients to create balanced art portfolios which are bespoke to their unique circumstances, values and growth expectations.
Tax Efficient Investment
Art investment delivers major tax relief benefits for its investors.
At Pictorum Capitis, when our clients wish to offset a portion of their portfolio or sell out entirely, they will have access to our extensive network of galleries, auction houses and brokerage services to ensure a fair and reliable exit in all market conditions.
Fully Asset Backed
When you invest in a piece of art you become the owner of a tangible asset which, unlike asset classes such as stocks and shares, will always have a residual value.