Investment Art: A Beginner's Guide

Forget your shares portfolio - the recession-dodging art market is increasingly proving to be the most profitable place for high-stakes investment

Oscar Wilde may have been mistaken when he claimed “all art is quite useless”. A new use for art has been emerging in recent years, and it may be the most pragmatic of all – as a solid investment. In a time when stock markets are sinking, debts are rising and the looming threat of double-dip recession cannot be entirely eliminated, the art market still sporadically dazzles with record-breaking profits. The unique economic buoyancy of art has long caught the eye of not just aesthetes, but also discerning investors.

Art now falls under the category of the "SWAG" asset. The term, coined by analyst Joe Roseman of Investment Week denotes "alternate investments" which manage to defy economic gravity – namely silver, wine, art and gold.

As well as being decidedly sexier than the FTSE 100, the trend of investing in luxury assets makes a lot of economic common sense. SWAGs often outperform other equities in times of economic downturn for several logical reasons. Firstly, they benefit from the uniquely profitable principle of "scarcity economics" (their value is related to their rarity). Secondly, in an unsteady market, people are drawn to stability, and all the SWAG assets are durable – they have a historical precedence of desirability and can be bought and stored almost indefinitely. Lastly, as their returns are not related to the patterns of the stock market, they add a sensible diversity to any portfolio, the literal asset equivalent of not keeping all your eggs in one basket.

So, we’ve all been there - you’ve got a few spare million in the savings account and you can’t decide whether to invest in the Damien Hirst or the Château Lafite. Luckily, help is at hand. The art market’s unique ability to maintain a bubble of prosperity amidst a global recession has given rise to a new type of business – the art investment advisor.

Businesses of this sort were virtually unheard of a decade ago, and yet the demand  for art purely as an investment has seen a proliferation in recent years. As well as increasing numbers of private banks offering advisory services to their clients, specialist companies such as Fine Art Wealth Management and The Art Investor exist to assist buyers on making choices for bespoke portfolios which can maximise returns. Perhaps most significant in this field, however, is The Fine Art Fund. Set up just over a decade ago by Philip Hoffman, this was the first business of its type to invest in art as an asset. Currently, they manage more than $150m of assets and achieved a net annual return of 6.34 per cent over the past eight years.

Hoffman recently told the Sunday Times, “In the old days people invested in bonds, stocks and cash, and now they’re investing in ten different subject headings and art is just one of them ... People don’t look at their gold bars and, in some cases, they treat art in the same way.”

The rise of these businesses is necessary because the unregulated nature of the art market means that it still straddles an awkward line between solid economic sense and a frantic, wild gamble. On one hand, there are plenty of promising statistics: in 2011, the Financial Times reported that the art market made an 11 per cent return to its investors, a frantic outstripping of stock market return. This year, sales have been promising, with impressive prices achieved at Art Basel in June, and there is a wealth of evidence that the top end of the market has been immune to the turbulence underneath it. In fact, over half of the 20 most expensive auction sales of all time have been completed since 2008, indicating an economic buoyancy which overcomes even the recession.

So far, so lucrative. Yet, the mechanics of the art economy are governed by strange, volatile forces which means that it is never a safe bet. Charles Saatchi himself noted “Art is no investment unless you get very, very lucky” in his 2009 book My Name is Charles Saatchi and I am an Artaholic. In many ways the art market is an economist’s worst nightmare. It is wholly speculative and subjective, and therefore constitutionally unpredictable. The valuation of contemporary art, in particular, is based on a collection of changeable and changing opinions. It is constantly affected by external circumstances, and trends are capable of crashing out of fashion just as swiftly as they crashed it. Additionally, it is fundamentally impossible to confirm the value of the market as a whole. Private sales comprise approximately 75 per cent of the total market, and these are almost always undisclosed. “The art market is the most illiquid, opaque market in the world,” explained Jeff Rabin, quoted in The Art Newspaper. Given this, manoeuvring within it is always going to be a guessing game.

Other industries have, too, sprung up in reaction to the demand of fine-art investment, notably the specialist storage port. Investment art is, emphatically, not bought to be hung on the wall. Instead, collectors are increasingly storing their assets in state-of-the-art warehouses. Christies are currently expanding their "Fine Art Storage Service" due to increased demand, and new ports are due to open in Singapore and Luxenbourg, adding to existing onces in Geneva. These large-scale warehouses offer highly regulated storage controls with humidity and light protection as well as extensive on-site security. They also have a notably appeal to the money-minded collector in that they allow the temporary postponement of VAT and customs duty payments.

The implications of this are vast. Not only with regards to the valuation of art, but with an entire overhaul of its purpose. Art bought as an asset and stored, indefinitely in a warehouse, far from the damaging light of day denotes a new mode of art ownership – one where the object d’art is reduced to a purely monetary transaction.

“It’s a depressing thought,” comments Connie Viney, a London-based artist who regularly exhibits at The Vyner Street Gallery, “Just recently there was the news that Sotheby’s have once again broken their auction record by selling a Rothko for £47.3m. By all accounts, it seems that that price will just increase once again next time it’s sold. With sums like that, how can people think of art becoming anything but a get-rich-quick scheme?”

Is this the real status of art in today's world? Elite, out-priced, stored out of site and endlessly circulated in a micro-economy closed off to all but the super-wealthy? "Art for art’s sake" is a 19th century concept. "Art for the people", too, is becoming swiftly outdated. The motto for our times, it seems, is "Art for the 1 per cent".

Auctioneers place bids during the Damien Hirst's Beautiful Inside My Head Forever, at Sotheby's in 2008. (Photo by Daniel Berehulak/Getty Images)

Kamila Kocialkowska is a freelance journalist based in London.

@ms_kamila_k

 

Photo: NRK
Show Hide image

Skam, interrupted: why is the phenomenally popular teen drama ending before its peak?

The show has been building towards high school graduation – but now it’s ending before its lead characters finish school.

“Have you heard they started their bus already?”
“No!”
“One month into high school – and they started their bus.”

This Skype conversation between Eva and Isak comes early in the first episode of Skam. The phenomenally internationally successful series follows teenagers at a high school in Oslo. The “bus” they're discussing is a key plot point and concern of the students' lives. That’s because, in Norway, graduating high school students participate in “russefeiring” – it’s a rite of passage into adulthood, a celebration of completing high school, and a farewell to friends departing for university or jobs around the country.

Students gather into groups, give their gang a name, wear matching coloured overalls, rent a big car or a van, and spend late April to mid May (17 May – Norwegian Constitution Day) continuously partying. They call it the “three week binge”. It’s a big fucking deal. 

Skam, with its focus on teens in high school, has therefore spent a lot of time thinking about “russ”. The show, which is set at the exact same time it airs, has followed its four main characters Eva, Noora, Isak and Sana (who each have a season of the show written from their perspective, a la Skins), as well as all their friends, from their first few weeks at school in September 2015. In other words, preparations take years, and we’ve heard a lot about the plans for their russ bus.

In season one, Eva has fallen out with her best friend, and is hurt when she hears she is moving on and has formed a new bus, with new friends, called Pepsi Max.

We meet one of the show’s most prominent characters, Vilde, when we see her trying to get a bus of girls together. The show’s five main girl characters, Eva, Noora, Vilde, Chris and Sana, become friends because of her efforts: they bond during their “bus meetings” and fundraising attempts. They flirt with a group of boys on a bus calling themselves “The Penetrators”.

The latest season follows Sana’s struggles to ensure the bus doesn’t fall apart, and an attempt to join buses with rivals Pepsi Max. The joyful climax of season four comes when they finally buy their own bus and stop social-climbing, naming themselves “Los Losers”. Bus drama is the glue that keeps the show together.

But now, in June 2017, a whole year before the characters graduate, Skam is ending. The architect of the girls’ bus, Vilde, has never had her own season, unlike most of her friends. Many assumed that Vilde would have had her own season during her final year at school. Fans insist the show’s creator Julie Andem planned nine seasons in total, yet Skam is ending after just four.

The news that Skam would stop after season four came during the announcement that Sana, a Muslim member of the “girl squad”, would be the next main character. The show’s intense fandom were delighted by the character choice, but devastated at the news that there would only be one more season. “I can’t accept that this is the last season,” one wrote on Reddit.

“I'm so shocked and sad. It’s honestly just...weird. It doesn’t make sense, and it’s not fair. It’s not fair that we’re not getting a Vilde season. Most importantly, it’s not fair that we’ll never get to see them on their russ, see them graduating, nothing. It seems like such an abrupt decision. It doesn’t serve the storyline at all.”

No one has given a concrete reason about why the show ended prematurely. Ina, who plays Chris, said in an interview that “we all need a break”.

Some fans went into denial, starting petitions to encourage Andem to continue with the show, while rumours abound suggesting it will return. 

Many speculated that the show simply became too popular to continue. “I think that the show would have had six seasons and a Vilde season if the show didn’t become popular outside of Scandinavia,” one wrote. “I think the pressure and the large amount of cringy fans (not saying that some Scandinavian fans aren’t cringy) has made making the show less enjoyable for the actors and creators.”

Andem has stayed mostly quiet on her reasons for ending the show, except for a statement made via her Instagram. She recalls how very early on, during a season one shoot, someone first asked her how long the show would last:

“We were standing in the schoolyard at Nissen High School, a small, low-budget production crew, one photographer, the sound engineer and me. ‘Who knows, but I think we should aim for world domination,’ I said. We all laughed, ‘cause I was obviously joking. None of us understood then how big Skam would turn out to be. This experience has been completely unreal, and a joy to be a part of.”

Skam has been a 24/7 job,” she continues. “We recently decided that we won’t be making a new season this fall. I know many of you out there will be upset and disappointed to hear this, but I’m confident this is the right decision.”

Many fans feel that season four has struggled under the burden of ending the show – and divisions and cracks have appeared in the fandom as a result.

Some feel that Sana’s season has been overshadowed by other characters and plotlines, something that is particularly frustrating for those who were keen to see greater Muslim representation in the show. Of a moment in season four involving Noora, the main character from season two, one fan account wrote, “I LOVE season tw- I mean four. That’s Noora’s season right? No wait, is it Willhell’s season??? What’s a Sana.”

Others feel that the subject of Islam hasn’t been tackled well in this season. Some viewers felt one scene, which sees Sana and her white, non-Muslim friend, Isak, discuss Islamophobia, was whitesplainy. 

One popular translation account, that provides a version of the show with English subtitles, wrote of the scene: “A lot of you guys have been disappointed by the latest clip and you’re not the only ones. We do want to finish this project for the fans but we are disappointed with how this season has gone.” They announced they would be translating less as a result.

The final week of the show has been light on Sana. Instead, each character who never received a full season has had a few minutes devoted to their perspective. These are the other girls from the girl squad, Vilde and Chris, and the boyfriends of each main character: Eva’s ex Jonas, Isak’s boyfriend Even, Eva’s current fling “Penetrator Chris” and Noora’s on-off boyfriend William.

It’s understandable to want to cover key perspectives in the show’s final week, but it can feel teasing – we get a short glimpse into characters' home lives, like Vilde struggling to care for her depressed mother, but the scene ends before we can really get into it. And, of course, it takes precious time away from Sana in the show’s final minutes.

Some were frustrated by the characters focused on. “Penetrator Chris” is a particularly minor character – one fan account wrote of his scene: “This is absolutely irrelevant. 1) It sidelines Sana 2) It asks more questions 3) It doesn’t answer shit. This isn’t even Sana’s season anymore and that’s absolutely disgusting. She didn’t even get closure or ten episodes or anything.

“Sana has been disrespected and disregarded and erased and sidelined and that is fucking gross. She deserved better. Yet here we are watching a Penetrator Chris clip. How ironic that it’s not even called just “Christopher” because that’s all he is. “Penetrator Chris”.

It’s been a dramatic close for a usually warm and tight-knit fan community. Of course, many fans are delighted with the final season: their only sadness is there won’t be more. One of the largest fan accounts tried to keep things positive. “I know people have mixed feelings about Skam and who deserves what in terms of screentime this season (etc),” they wrote, “which I totally understand.

"However, everything has already been filmed, so there is nothing we can do about it. I think this last week of Skam will be much more enjoyable for everyone if we focus on the positives in the clips ahead. Skam isn’t perfect. People are allowed to disagree. But let’s go into this week being grateful for everything Skam has given us.”

Some fans choose to look to what the future holds for the show – an American remake. It will keep the same characters and plotlines as the original, and Andem may be involved.

Few think it will be a patch on the current show, but some are excited to have the chance to watch it teasingly as a group regardless. It seems unlikely that the US remake will compare in terms of quality – not least because the original was so heavily researched and tied to Norwegian culture. But for fans struggling to let go of Skam, it can’t come soon enough.

Anna Leszkiewicz is a pop culture writer at the New Statesman.

0800 7318496