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.

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Mother of all bloodlusts: Sexual politics and Greek tragedy

New interpreteations of ancient stories show the deep roots of our thinking about sex and gender

During the 1960s Pier Paolo Pasolini made two films based on ancient Greek tragedy, Oedipus Rex and Medea. In the latter, Maria Callas played the heroine with predictably operatic bravura – dark eyes flashing out dark emotions, thrilling voice conveying ferocity and pain. Pasolini’s Oedipus, by contrast, was almost silent (there was dialogue, but very little of it) and unmitigated by consoling theatricality. Distant figures crept across a scrubby desert. Thebes’s mud walls rose, like an organic growth, from the bare ground. The leading actor’s face was thuggish and inexpressive. The soundtrack was dominated by the soughing of the wind. Pasolini used barely a line of Sophocles’s verse, but I remember the film as having a desolate grandeur unmatched by any of the theatrical productions I have seen since. It was nothing like the tragedies acted out by masked performers in 5th-century Athens, but its harsh beauty felt appropriate to the Bronze Age legends on which those tragedies were based.

Those legends are still attracting new interpreters. “The finest tragedies are always on the story of some few families,” wrote Aristotle. He was thinking of the House of Atreus, whose terrible sequence of internecine killings provides the material for Colm Tóibín’s latest novel; of Oedipus’s incest-entangled web of relationships, now unravelled by Natalie Haynes; of Medea, the heroine of David Vann’s Bright Air Black, a sorceress whose royal status, adventurous spirit and unearthly powers have all been eclipsed in the collective memory by her shocking transgression against family values – the slaying of her own children.

Sexual politics has been intrinsic to these tales since the Greek tragedians first explored them: 21st-century gender politics isn’t going beyond, merely keeping pace with, the thinking of the ancients here. ­Aeschylus framed the Oresteia as a conflict between mother-right and father-right and concluded with a judgement from Athena. The motherless goddess, born from her father’s head – woman but also all-man – ordains that humanity must find a way to reconcile the male and female principles. When Robert Icke, in his recent adaptation of the Oresteia, located the origin of the family’s trouble in Agamemnon’s sacrifice of his daughter – the killing of a girl child for the sake of her father’s manly honour – he wasn’t making an anachronistically feminist point: he was faithfully following Euripides.

So there is nothing new about the way modern reinterpretations zoom in on the women. Colm Tóibín gives the husband-killing Clytemnestra a voice; Natalie Haynes does the same for Jocasta, the mother of her son’s children, and for one of her daughters. As for David Vann, he allows Medea to devour him and his readers: to read his book is to be swallowed down into her mad mind.

In House of Names Clytemnestra is the initial narrator. Tóibín has written about many mothers, including, in The Testament of Mary, the mother of Christ. None of them conforms to any sentimental ideal of the maternal. This one is particularly problematic. Clytemnestra was duped into delivering her daughter Iphigenia to a horrible death. She was an adulteress who took a lover while her husband, Agamemnon, was away at war, and subsequently murdered that husband. She killed the enslaved Trojan princess Cassandra out of jealousy. She so signally failed to win the love of her surviving children, Electra and Orestes, that they killed her.

Tóibín, writing in grandly simple, declaratory prose, gives her a raging energy and a bitter intelligence. The unfolding of the story she tells – that he tells through her – will surprise few readers, but he structures it subtly enough to maintain its tension. Clytemnestra speaks at first in flashback, recounting the ghastly tale of Iphigenia’s sacrifice from a much later point in time, while Agamemnon’s and Cassandra’s bodies lie exposed outside the palace walls. The violence is gruesome and Tóibín doesn’t spare us any horror, but the folding of chronology creates a kind of decorous formality.

Clytemnestra’s story is one we know. When Tóibín shifts his attention to her son Orestes the book becomes stranger, its narrative more original and its tone more hallucinatory. None of the canonical texts tells us much of what Orestes was up to in the interim between his father’s murder and his own return, years later, to avenge it. The ancient sources speak of him growing up in a foreign court. Tóibín ignores that tradition and has him marched off instead, along with a column of other boy hostages, and imprisoned in an infernal complex of caves. He escapes with a charismatic older boy, a teenaged guerrilla named Leander. They wander through a landscape of poisoned wells and killer-infested groves as inhospitable as Pasolini’s imagined desert.

The journey makes for a haunting story, largely because Tóibín tells it in spare, resonant prose, from Orestes’s point of view. He is a child and then a bewildered, emotionally stunted adolescent. Filtered through his consciousness, his dangerous exile and even more dangerous return to his mother’s court are at once materially vivid and bafflingly vague. He just doesn’t understand the political and sexual currents eddying around him, and his incomprehension makes them all the more potently alarming.

Tóibín’s other addition to the story is a reimagining of the usually opaque Aegisthus, Clytemnestra’s lover and accomplice. Here he is not just Agamemnon’s rival in love and power: he is his shadow and counter-image, a king of darkness. Confined in a dungeon beneath the palace, he commands a hidden, irregular army. Once released he becomes a sexual predator, roaming the palace corridors by night in search of men or women to suit his appetites. After Electra’s coup d’état Aegisthus’s legs are broken to prevent him from leaving to establish a rival power base. Immobile in his chair, he still dominates the council meetings.

It is probably too simple-minded to ­suppose, just because Tóibín is Irish, that we should read into this a reworking of Ireland’s history of clandestine armies and generation-spanning revenges. Yet the tentative hopefulness of his book’s ending, involving the fading of a grim ghost, a benign forgetting and a baby’s birth, does seem to speak (albeit quietly) of better times.

“Can you name another man who has ever done what you have done?” Thus Tóibín’s Leander to Orestes. A son’s killing of his mother is an unheard-of transgression. Orestes realises that he is being kept at hand by the ruthless new regime as a
potentially useful tool, because he “had proved to them that he was someone who would do anything”. Medea’s crime – a mother’s killing of her sons – is the mirror image of his own, and breaches an equally powerful taboo.

In Tóibín’s Mycenae, a culture defined by its gods is giving way to a secular society. Clytemnestra has stopped praying: “The gods have their own unearthly concerns, unimagined by us. They barely know we are alive.” By the end, her consciousness fading, the only deity she can remember is the inhuman rapist who defiled her mother – Zeus, in the form of a swan. Her daughter Electra laments that as obfuscating superstition dwindles, the world is increasingly exposed to the light of day. That enlightenment, Electra thinks, is a blight. “Soon it will be a world barely worth inhabiting.” The world David Vann’s Medea inhabits is subject to no such diminishing daylight. We are in a dark age.

Rachel Cusk recently updated Euripides to present Medea as a modern wronged wife. Vann does the reverse. He is not interested in drawing parallels with banal, latter-day domestic upsets: he is conjuring up a pre-classical sorceress cloaked in darkness, fornicating on the deck of the Argo amidst the decomposing remains of her dead brother’s body and opening her mouth to show the vile worm that lies where her tongue should be.

His Medea has doubts about the myths that supposedly explain her world. If the sun is her grandfather, how come the human race, which should be only two generations old, is so numerous? But she has no understanding to put in its place. Her eye is innocent, not in the judgemental moral sense but literally. She knows what the golden fleece is – one of the sheepskins used to pan for gold in the rivers of Thrace and left glittering with gold dust – yet she knows almost nothing else. Her wonder at the sea, and the way its water buoys her up, prompts a beautiful passage. Her freedom from guilt verges on the absurd. She is a kind of Martian, travelling to us not from outer space but from the deep past.

Vann’s novel shares with Tóibín’s book an interest in power: how to get and keep it, how legitimacy is trumped by assertiveness. Just as Orestes, returning to Mycenae, is baffled to find that, king’s son though he is, no one sees him as a potential ruler, so Medea and Jason share a naive belief that when they return with the sparkly sheepskin the old king will abdicate the kingdom to them. He doesn’t. The novel’s narrative swings round on the shocking passage in which it dawns on Medea that her betrayals and outrages aren’t to be rewarded with a throne, but have delivered her into slavery.

Vann’s title is borrowed from Robin Robertson’s version of Euripides’s Medea. Vann is indebted to poets, and he grants himself great poetic licence in his handling of syntax. His prose is as hacked and chopped as the corpse of poor King Pelias after Medea has bewitched his daughters into jointing him for a stew. It is as though Medea, barbarian from an immeasurably ancient world, has yet to reach the evolutionary moment when the human mind comprehended that causes had consequences, and sentences have main verbs. Vann writes always from her point of view. The resulting narrative can be wearisome, like spending time with someone too stoned to think connectedly, but it is also vivid, often appalling, sometimes piercingly
sad and frequently striking. This Medea is all sensory perception, no reflection. “The men wet and shining, skin burnt dark. Medea’s skin far whiter, turning red now, painful.” And so it goes on, right down to the final horror. “Hot blood on her hands, Aeson [her little son] jerking against her side.”

If Vann drags the reader with him into chaos and old night, Natalie Haynes seems intent on illuminating and rationalising the cluster of legends about Oedipus and his family. Haynes is an expert populariser. Her story is enriched by archaeological know-how. She gives us a clear account of the layout of the palace at Thebes. She describes markets and dresses, pots and meals. In its physical details, her story is a plausible reconstruction of urban life in a Greek palace-state – complete with obsidian mirrors and wax writing-tablets, dark rooms and sacrificial fires.

She has two narratives, arranged in orderly fashion in alternating chapters. The story of Jocasta’s marriage, widowhood and remarriage to a good-looking young stranger (who turns out to be her own son) is told in the third person, simply and realistically. Ismene, one of her daughter/grand-daughters, narrates the chapters that deal with her experience. She is attacked by an assassin. She looks on as her brothers compete for power in Thebes. She distrusts her uncle Creon. She doesn’t reveal, until the very end, when she is about to be reunited with him, that she knows why her father is a blind wanderer, and why her mother is dead.

The bipartite structure is efficient. The narrative progresses satisfyingly. But Haynes not only demystifies, she demythologises, stripping the story of its ­numinous charge. King Laius is homosexual: he orders a slave to take his place in the marriage-bed and impregnate his young wife (which means that Oedipus’s inadvertent killing of him is not actually a parricide). The sphinx is neither a fabulous monster nor a riddler: it is a predatory tribe. Jocasta kills herself not because she is shamed by the revelation of her incest, but because she has been infected with the plague and doesn’t want to pass it on to her children.

There are horrors certainly, but they are mundane ones. Eteocles’s corpse lies rotting in the sun when Creon denies it burial, but it is ghastly for its smell, and the circling vultures, rather than the offence against ­human dignity and divine decree. Even the characters’ names have been deprived of the resonance two and a half millennia of remembering have given them. Antigone and Ismene become here “Ani” and “Isy” – two ordinary girls in a tricky situation. The book is entertaining, but Pasolini it most certainly is not. Aristotle, who expected these stories to purge their audiences’ minds by overwhelming them with pity and terror, would have been sorely disappointed. 

House of Names 
Colm Tóibín
Viking, 263pp, £14.99

Bright Air Black 
David Vann
William Heinemann, 252pp, £18.99

The Children of Jocasta 
Natalie Haynes
Mantle, 336pp, £16.99

Lucy Hughes-Hallett is the author of “Heroes: Saviours, Traitors and Supermen” (Harper Perennial). Her latest novel, “Peculiar Ground”, is newly published by Fourth Estate

This article first appeared in the 18 May 2017 issue of the New Statesman, Age of Lies

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