Is automatic addition to navigation possible with bespoke papercraft art?

[slowPony]

I am currently working on a shop for a client who does bespoke papercraft art. The client has a few categories and types of said art in their store alreaady, but it could safely be assumed more and different types of art will be added in the future.

What I would like to do, if possible, is to make it so that when she creates a new tag or collection, said item will populate to a "Categories" navigation menu item as a distinct sub-item. Is such a dynamic, automatic addition to navigation possoble with Shopify?

Thanks in advance for any guidance on this.

[DaveBitton]

This can be done in Liquid.