Artworks

Compared to leading stocks, art has been a stellar investment over the past twenty years.

Contemporary Art Investment

Since 2000, the top-end of the art market has outperformed the S&P 500 by 449% according to the ArtPrice 100 Index, with an annual average increase of 8.9%. At Mintus, we focus on Post-War and Contemporary art for our art investment offerings, but why is that?

Biggest Market, High Growth, Best Potential

The market for Post-War and Contemporary art has undergone a huge period of growth in the 21st Century. At auction in 2000, the sector accounted for only 17% of the market share by sales value. In 2021, it accounted for 55% of the value of the fine art auction market. This substantial increase is indicative of the fact that it has become by far the biggest and most active fine art market sector, and subsequently the sector with the most liquidity and best investment opportunity.

Art is of course subjective, highly personal, and generally reflective of the wider societal and demographic trends. So, it’s perhaps not surprising that works created since 1945 have produced by far the strongest returns; the ArtPrice Post-War Art Index has grown 267% since 1998¹.

Contemporary art reflects the latest fashions, connects with a recognisable zeitgeist, and often possesses a “wow factor” that captures collectors minds more than older periods. By definition, it’s newer and fresher to market, and it can attain cult status, making it attractive to investors. This is apparent in the prices, which have regularly found new highs following frenzied bidding at auction, and is reflected in the ArtPrice Contemporary Art Index, which has grown 358% since 1998².

The performances of both indexes are indicative of the potential profit of contemporary art investment.

Post-War? Contemporary?

Mintus focusses upon the Post-War and Contemporary sector for its art investment offerings. Post-War art refers to artists who came to prominence in the decades following the Second World War – from 1945 until around 1990 – such as Andy Warhol. Contemporary art generally refers to artists who came to prominence since 1990, such as George Condo. Whilst technically it is Post-War and Contemporary art that we are focussed on at Mintus, the sector may more generally be abbreviated to Contemporary art for ease.

Established Figures or Hot New Names?

The latest statistics from the UBS & Art Basel Art Market Report (2022) showed that whilst the majority of sales happened at the lower value end of the market, ultimately the majority of the market value sits in the upper end. Sales of $1 million and above accounted for only 1.2% of the sales volume but were responsible for 64% of the sales value.

At Mintus, we focus on blue-chip art investment. This means artists at the top-end of the market, in the $1+ million bracket. Examples of some of these artists are Andy Warhol, Jean-Michel Basquiat, David Hockney, Yayoi Kusama, and Gerhard Richter. All of whom have a sustained auction track record, international collector base, and market momentum over the last two decades, marking them out as some of the best contemporary artists to invest in. Yayoi Kusama’s Paintings Price Index, for example, has multiplied over 65-fold since 2000³.

This kind of historical gain illustrates what is possible with well-known names. However, lesser-known artists can offer more speculative and higher-risk contemporary art investment opportunities as they become better known. With this in mind, we are also considering offering exposure to emerging artists in the future.

Footnotes

ArtPrice Global Indices, data correct as of 1st October 2022
ArtPrice Global Indices, data correct as of 1st October 2022
Yayoi Kusama Artist’s Paintings Price Index, ArtPrice, data correct as of January 2023

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Frequently Asked Questions

We answer some of your common questions here.

The Artwork

Can I list my artwork for sale on Mintus?

We welcome any owner who wants to unlock liquidity from their collections to contact our Fine Art Team. This includes individual investors, galleries, institutions, and artists. Please reach out if you're interested in listing your artwork on the Mintus platform.

How is the art stored?

All artwork offered by Mintus is stored in climate-controlled, specialist art storage facilities, under a Mintus account. Current paintings are held in a facility in Delaware.

How is the artwork on Mintus selected?

Artwork is acquired through our unique relationships with the world’s most renowned collectors and galleries. Our Fine Art Team marries their own expertise with insights from fellow industry experts to identify one-of-a-kind investment opportunities from established artists with high-growth potential. Our team examines metrics such as the artist’s market track record, recent price velocity and momentum, and the size of their international collector base when making investment decisions.

General

How can I contact Mintus or make a complaint?

If you need support you can send an email to support@mintus.com or schedule a call using the links on each page of our website. If you need to make a complaint you can write to complaints@mintus.com. A description of our complaints policy is set out in the Investment Terms & Conditions for each investment.

Is Mintus authorised by the FCA?

Mintus Trading Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom under firm reference number 942522. For more details on our regulatory permissions please see the Financial Services Register.

What are the risks of investing?

For more information on risks, see the Memorandum for the relevant artwork and the important disclosures.

Does Mintus sell NFTs?

Mintus does not sell NFTs. NFTs are digital assets. Mintus enables qualifying investors to participate in the art market by purchasing interests in high value, physical artworks. Mintus’ platform facilitates investment in real, iconic artworks created by established artists.

General

Can I sell my shares?

Mintus will introduce a Secondary Market for investors in permitted locations, which will facilitate selling of shares to buyers, dependant on demand.

Why do I need to be a ‘high net worth individual’, ‘sophisticated investor’, or 'accredited investor' to join the Mintus platform?

According to the regulations, certain investments can only be made available to investors who fall within these categories and Mintus must also follow appropriateness requirements when registering investors.

What does Mintus charge?

Fees are dependent on the specific artwork and the specific structure of the investment opportunity. Fees are clearly shown in advance for each artwork / investment opportunity, as displayed in the Memorandum that relates to the artwork / investment opportunity; this document is available to download from the profile of each artwork under the Opportunities section.

Is Mintus only for individual investors? Is it appropriate for wealth managers or private banks?

Both individual investors and institutions can invest in artworks. Individual investors will need to declare themselves to be ‘high net worth individuals’, ‘sophisticated investors’ or 'accredited investors' during the account creation process. Individual investors will also need to pass an appropriateness assessment. Professional investors including wealth managers, private banks and family offices should contact our team for more information on investing as an entity or managing multiple client accounts on the platform.

Is there a minimum investment on the platform?

For the opportunities listed, a minimum investment of $3,000 is required however investments can be for any amount above this and generally range from $15,000 to $100,000. International payments are accepted.

How do I transfer my funds to a USD account?

Funds can be sent from any denomination into our USD bank account. We will show you the estimated cost in your chosen currency during the investment process, however this may change at the point of transfer, and does not account for fees charged by your bank. When transferring, your bank may show an estimated conversion; alternatively the funds can be sent in your local currency and converted at the point of receipt. Other transfer services such as Wise display exact fee and currency conversion rates to ensure you're sending the subscribed amount.

General

How will I be taxed once shares are sold or returns distributed?

Mintus does not provide tax advice. We recommend that investors obtain their own tax advice as every person has specific tax circumstances. Generally, income and profits generated from your investment can be subject to either income tax or capital gains tax (depending on the individual investor and the specific structure of the investment). Artworks are not income-generating during the period they’re held. If you are unsure about your tax or other legal requirements, please speak to a professional advisor.

Can I port my investment between Mintus’ artworks?

Not directly. In order to take an investment from one artwork to another, shares would need to be sold to a willing buyer on the future Mintus Secondary Market and then proceeds reinvested on the platform. The Secondary Market will only be available in permitted locations.

When can I expect to receive the valuation reports?

Typically, valuations occur at the end of June and December, with reports distributed to investors as soon as possible thereafter.

How are actions surrounding artworks communicated to investors?

All actions in relation to the asset are at the discretion of Mintus. Mintus will communicate with investors on a six-monthly basis with an update on the net asset value, and any further news will be communicated on an ad-hoc basis.

How soon are profits received by investors after the sale of the artwork?

Distributable profits will be made available to investors as soon as possible, once all sale-related administration is complete.

Am I able to reinvest profits from sales with Mintus?

Profits will be received into your Mintus wallet, with the option to withdraw the profits into a bank account or reinvest on the Mintus platform.

Mintus Trading Limited is authorised and regulated by the Financial Conduct Authority (FRN 942522).

Mintus.com is operated by Mintus Trading Limited, a company incorporated in England and Wales (Registration number 12643726).

Important Disclosures

Please familiarise yourself with the following disclosures before investing.

Performance Not Guaranteed

Past performance is no guarantee of future results. This is the case for specific pieces of art, for the artist’s market, for the art market as a whole, for Mintus, and for the funds managed by Mintus. Any historical returns, expected returns, or probability projections are not guaranteed and may not reflect actual future performance. Any investment involves a risk of loss, and prospective investors are urged to carefully consider whether an investment is suitable for them. The value of an investment may go down as well as up and investors may not get back their money originally invested. Investments in art, or in companies owning art, are highly illiquid and those investors who cannot hold an investment for the long term (at least 5 years) should not invest.

High Risk of Loss

All securities involve a high degree of risk and may result in partial or total loss of your investment. Your capital is at risk.

Specific Investment Risk

You should carefully read the Information Memorandum concerning the investment and the underlying asset held, and the associated risks specific to that asset and investment.

Performance Comparisons

The comparisons of historic performance of art, financial assets and commodities are comparisons of historical data which may not be a reliable indicator of the value of any given piece of work. In addition, different investments have differing features including differing risks, differing liquidity, and differing transparency of valuations. The comparisons included here do not reflect actual trading and are hypothetical returns generated based on proprietary methodologies developed by the third parties indicated on each picture. These performance calculations do not include any reduction for fees, which would likely decrease returns; investors in the investment opportunity described in this document will be charged fees based on their investment. Investors should treat the performance data provided in this document as illustrative only and should not base their investment decisions on them. Additional information on the figures provided here is available from Mintus on request.

Third Party Information

Some or all of the information provided, or linked, in this document was prepared or provided by one or more third parties. We have not independently verified any such statements or information, and such states or information may be inaccurate, incomplete or otherwise misleading. Additionally, statements and information contained in this document may include or be based on subjective judgments or assumptions, which may not turn out to be accurate.

Underlying Asset Risk

The underlying asset may be art, or another speculative asset class that may be illiquid, hard to value, and have a high risk of loss itself. Please note that art is not an investment instrument covered by the Financial Conduct Authority. The underlying asset may be valued in a currency other than the invested currency and therefore there may be currency exchange risk in addition to the inherent investment risk. Each asset in which you may invest will have risks that are specific to that asset class and indeed that asset itself. You should review all available material carefully before deciding to invest and, if you are unsure about whether the investment is a good decision for you, you should consult with an authorised investment advisor who has experience of the asset class in question.

Liquidity Not Guaranteed

Investments offered by Mintus are illiquid and there is never any guarantee that you will be able to exit your investments on the Secondary Market or at what price an exit (if any) will be achieved. In addition, the timeframes to liquidate the underlying asset and return capital may be extended beyond those anticipated by the manager due to many factors. You should not rely on any specific timeframes for a return of capital and should not enter into any investment if you think you may need to liquidate the investment in the medium to-long term.

Not a Public Exchange

The Mintus Secondary Market will not be a stock exchange or public securities exchange, there are no market makers, there is no guarantee of liquidity and no guarantee that once launched, the Mintus Secondary Market will continue to operate or remain available to investors. You may not be able to sell your investment easily or without taking a loss.

Forward-Looking Statements Should not be Relied Upon

This website contains certain forward-looking statements that are subject to various risks and uncertainties. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "outlook," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, or state other forward-looking information. Future events, actions, plans or strategies are inherently uncertain and actual outcomes could differ materially from those set forth or anticipated in any forward-looking statements you receive. You are cautioned not to place undue reliance on any of these forward-looking statements.

Not a Recommendation, Speculative, and High Risk

Mintus does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation for any security offered on or off this investment platform. Investments in private shares and non-mainstream pooled investments of the kind offered on the Mintus platform are speculative and involve a high degree of risk and those prospective investors who cannot afford to lose their entire investment should not invest. You should carefully consider the risk warnings and disclosures for the respective fund or investment vehicle set out therein. The value of an investment may go down as well as up and you may not get back the money you originally invest. An investment in a fund, private company or investment vehicle is not the same as a deposit with a banking institution. Please refer to the respective fund documentation for details about potential risks, charges and expenses. In the most sensible investment strategy for investing in private companies, private companies should only be part of your overall investment portfolio. Further, the private company portion of your portfolio may include a balanced portfolio of different private companies. Investments in private companies are highly illiquid and those prospective investors who cannot hold an investment for the long term (at least 5 years) should not invest.

No Access to FSCS

Investments are not covered by the Financial Services Compensation Scheme and your capital is at risk.

No Guarantee of Dividends

There is no guarantee that any company you invest in will pay dividends or other form of income to you.