ART MARKET: WHAT IS DI FERAL HORSES
The Internet and new technologies have completely changed the art market and the world of art collectors.
But how do things really stand when we talk about the art market, and what are the solutions for an art lover who wants to invest in art?
I asked Francesco Bellanca, CEO of Feral Horses, the new Italian-French online trading platform which is about to change the current world of art investments, some questions.
- How does the art market work?
F. B.: The art market is divided into primary market and secondary market.
The first term refers to transactions in which artists are the sellers, and therefore, when an artwork is sold for the first time.
The secondary market refers to all other transactions after the first sale, that is to say all the following transfers of property.
Inside Feral Horses you can find both the primary market and the secondary market.
- What advantages does Feral Horses offer the world of art, artists and collectors?
Feral Horses is an art investment and trading in art platform where users can buy shares of the artworks on sale, instead of buying them entirely.
Therefore, users can acquire a percentage of an artwork (a minimum of 0,1%).
In the section dedicated to the primary market, users of the platform can buy shares of artworks directly from the artists.
The shares have a fixed price, decided by the artists themselves, and there are a minimum number of shares (threshold) which have to be sold in order to validate the sale.
If at the end of the period of sale- 45 days- the minimum number of shares is not sold, the sale will not go well, and users will be refunded.
If, instead, the sale is validated, the work will be moved to the secondary market.
From that moment on, anyone who has bought some shares can decide to sell them at the price they deem suitable.
In all this digital process, “physical” artworks are managed by Feral Horses which rents them to companies and private citizens, making a profit.
Then, the profit is divided proportionally among the owners of the works of art.
As regards the artists, what we offer provides considerable benefits: first of all, taking one of the lowest commissions on sale in the whole market (20%), we are very competitive. Moreover, we give artists the chance to decide which percentage to sell in the primary market, so that they can sell part of their old works in the future, a thing that can’t be done in the current art market.
Last but not least, the rental.
The rental is not only a way to generate profits for the owners; but it’s also the way through which we try to promote the works of the artists all around Europe among an increasing number of people.