Repeat After Me....Tangible Assets!

After graduating college, I fondly remember defending my choice of major & subsequent career path relentlessly with the following two words "Tangible Assets". In 2009, a typical conversation when discussing my professional future would go something like this...

Someone: What did you study in school?

TLC: English Literature and Art History!

S1: Oh, do you want to be a teacher?

TLC: No, I'm really interested in art advisory and collection development from a financial standpoint.

S1: Oh???

TLC: Well, with the economic financial crisis people are really starting to look for a way to invest there money in alternative, tangible assets. They're a great way to diversify an investment portfolio and typically have a low correlation with the S&P 500...blah.blah.blah *20 minutes later*.

S1: That's great. *Aside with incredulity* This betch is Cray Cray!

Well Ladies & Gentleman, hold on to your Warhols!

The experts have weighed in... is art really a better bet than stocks? Michael Plummer and Jeff Rabin from Artvest Partners say 'Yes & No'

Fine arts professionals & high net worth individuals have known this for years! Anyone ever hear of the Rothschilds? One of those peasants is said to have said five to ten years ago that they always felt that a third of their assets should be in real estate, a third of their assets should be in art and a third in financial investments. Also, any good art dealer knows that their 401k is their own personal stockpile of rare to market works they come across in their dealings |no pun intended|.

Let's lay down the basics.

Fact: Art IS an asset class.

Fact: Tangible assets have always been something that the Asian community and the European community has sought. But since the instability of the financial markets in '08 there has been a tremendous increase in interest in true alternative assets and cash.

Fiction: The art market and the broader economic market are closely correlated.
The problem with correlation are many [read the article]. The art market is more directly correlated with wealth creation. The greater the wealth creation, the greater the participation in the art market.

Fact: Art is an illiquid asset. So this is a downer for sure. If the economy takes a turn for the worst you typically can't pay the bills with Picasso prints...people who don't have a lot of cash on hand and who are worried about liquidity shouldn't tie up too much capital into Art. Auctions are an obvious way to liquidate your art assets but if you put property up for auction during an economic slump you run the risk of the work selling for less than expected, if at all.  A work of Art buying in at auction can seriously tarnish the work for re-sale as auction records are now public through sites like Artnet.com...better to sell privately or not at all.

Fiction: There is no point investing in art if you aren't an ultra-high-net-worth individual. Art is a terrific diversification tool no matter what that size of your wealth portfolio is!

So the million-dollar-question...How do you start?

If I had three pieces of advice for the novice art collector it would be the following:

1_Start small:
Don't shoot into the art market guns a-blazing. Anytime someone is new at something there are bound to be mis-steps. When your financial security is involved don't jump into the deep end automatically, start out in the baby pool by investing in works that you can afford to take a loss on *not that you will if you follow ALL of my tips ;)

2_Buy what you like but buy smart:
There is definitely a place in the arts community for patrons who support emerging artists, who can afford the luxury of purchasing and supporting artists who may never gain notoriety but unless you have deep pockets that type of purchasing has no place in  your investment collection.  That being said, there is definitely a way to purchase artwork you love that is still a sound financial investment. Art is meant to be seen, enjoyed, discussed, ect what have you, so buy something that appeals to you, as long as its a sound investment.

3_Ask A Professional:
If you want to start purchasing art as a means to diversify your assets you should enlist the help of someone who is familiar with the art market.  Banks & auction houses have professional arts advisors on staff for this reason. Even smaller galleries and specialized art investment firms are available to help you start your own investment collection. Sit down and discuss with them your budget, taste and expectations and you'll be a collector in no time.

Art can be not only be a viable way to help diversify portfolios, but if properly managed has the potential to outperform equities, bonds and real estate holdings.

Douglas Druick Named as New Director of the Art Institute of Chicago

Douglas Druick, Director of the Art Institute of Chicago

The Art Institute of Chicago has looked within its own ranks to replace James Cuno. The famed museum announced today that Douglas Druick, a 26-year veteran at the museum who has served as acting director and president since the former director's departure in June, will be taking the reins of the institution permanently. He has been named the Institute's president and Eloise W. Martin Director, effective immediately.

A 66-year-old museum veteran, Druick is respected within the Institute, where he has been chair of its core Department of Medieval to Modern European Painting and Sculpture as well as the Department of Prints and Drawings. Until now, however, he has had a lower profile on the national and international stage.

In a statement announcing the appointment, Art Institute board chairman Tom Pritzker praised Druick's tenure at the museum, which since 2006 has involved managing its vaunted collection of Impressionist, Post-Impressionist, and Modern art. "Douglas is one of the leading curators in the world, and his contributions over more than two decades have been immeasurably important to the development and presentations of the collections as well as the exhibitions at the museum," Prizker said. "As we looked for a new director, the search committee kept returning to Douglas' experience, intellect, and vision for the museum."

Druick, who received a PhD in art history from Yale University in 1979, has curated numerous exhibitions at the museum, including the highly regarded "Cézanne to Picasso: Ambroise Vollard, Patron of the Avant-Garde" in 2006 and "Jasper Johns: Gray" in 2007. "I have served this institution for more than two decades because I have the greatest respect for it and believe it to be one of the finest museums in the world," the new director said in the statement. "To now be asked to lead the Art Institute is a great privilege."

Welcome! Or should I say, Thanks for Staying! 

The Age Old Question - Does Size Matter? *I'm not afraid to ask

Seward Johnson, Forever Marilyn

Since it's unveiling, Seward Johnson's 'Forever Marilyn' has seen a mixed-bag of critical responses. While I personally want to gouge my eyes out over this kitschy schlock, apparently Chief Curator, Michael Darling, at the Museum of Contemporary Art expresses that it's size - works. Darling says, 'One thing (to consider) is just the very basic human instinct to take a photo of something that's out of size.  We think about how weird something looks, but also I definitely don't mind the notion of spectacle - and creating something big and impressive and unusual in a site like (Pioneer Court) - that can galvanize the public's interest.'  He touts that the work 'commands the space,' but so can a litany of other large-scale installations, just look at Marilyn's peers.

Scale, specifically - larger than life scale, seems to be a major recurring theme in Chicago's public sculpture. This, summer less than a mile north of Marilyn, an enormous coat hanger is bent into the plaza in front of the Museum of Contemporary Art. To the east, a miss spelled plea for help, FIX-ICE MACHENE, in 12 foot wooden letters on Navy Piers Front Lawn. And in the Loop, a nine story mural on a building at State and Washington reads 'GO DO GOOD' in large black block letters against a highlighter yellow background. If bigger is better than Chicago is the best when it comes to public art. Don't forget last year's Tony Tasset sculpture of the Eye that stood sentinel near Harold Washington Library. Even Picasso's flamingo stands merrily gargantuan. But can something like 'Forever Marilyn' really make it's claim as serious public art based on scale alone? No.

I can make a great case for the Chicago's other large scale art installations and - admittedly - a  tenuous one for 'Forever Marilyn.' Does anyone remember Warhol's Athlete Series or iconic paintings of Elizabeth Taylor and even good old Marilyn? or JEFF KOONS ENTIRE CAREER? Needless to say, Seward Johnson's 'Forever Marilyn' is a throw-away piece of public art. It does not challenge or engage the public.  It's too easy, according to Darling. '(The image) Is so well known, its banal, in a way.' Darling goes on to compare the aesthetic of 'Forever Marilyn' to the saccharine interior of a dentists office.

But let's look at the upside. Even though Chi-City is stuck with this vomit inducing sculpture, that is the kitsch equivalent of a porcelain kitten plate, for a while it reads as a great barometer for the public's reaction to the art that is thrust upon it. And what is the public saying? 'Give us some credit - we're more sophisticated than that.' Bravo people of Chicago, Bravo!

http://www.chicagotribune.com/entertainment/art/ct-ent-0830-arts-focus-sculpture-20110829,0,3221562.story?page=2

I Will Not Wear Any More Boring Tattoos

If any of you follow me on twitter or facebook, you may have noticed my reaction to the new Japanese trend of Teeth Tattoos.  The tattoos are decorative, some even look like tiny lady bugs crawling across your teeth - gross! If you interested in a tattoo I definitely can get on board with I would recommend waiting until fashion week when mega-art collector and fashion maven Dasha Zhukova unveils her inaugural edition of 'Garage.' One of the potential covers features  a Hedi Slimane photograph of a lower half of a nude model, whose crotch is covered by a green butterfly sticker created by Damien Hirst. The sticker peels off (inspired by the Velvet Underground album art by Andy Warhol) to reveal a butterfly tattoo, also of Mr. Hirst’s design.  Teeth tattoos = taboo; Damien Hirst temporary Pubic Tattoo = must have fashion forward fall accessory!

'Garage' is slated to be one of the more intriguing magazines to come around in years. A hybrid of Vogue and ART + AUCTION, it is not entirely clear whether this is a fashion magazine that takes more than a passing interest in art, or an art magazine that knows its stuff about fashion.

The magazine, created by Dasha Zhukova, a former editor of Pop, and named after the contemporary art center she opened in Moscow in 2008, includes collaborations between prominent figures of both worlds and blurs the boundaries to such a degree that even the artist Dinos Chapman said his work in the magazine could be described as “a full-blown fashion shoot.” Working with the photographer Nick Knight, Mr. Chapman created a creepy dollhouse in which a puppetlike version of the model Lily Donaldson wears designer duds from Marc Jacobs and Mary Katrantzou.

In a newsstand environment dominated by digital perfection, Garage stands out because it looks almost handmade. The type is an amalgam of fonts, set to appear randomly. Some pages are pure mystery, like a spread that shows a dress called “Lettuce by Alexander McQueen.” It appears to be made of romaine, a creation by Ms. Battaglia and the photographer Fulvio Bonavia. Also included is a Prada dress made of citrus and a Moncler coat of anchovies.

“I hope nobody reads our e-mails back and forth,” Ms. Battaglia said. “We were writing things like, ‘yes, Prada is an orange, that’s genius! And Moncler is a fish!’ ”

Would that make Lanvin a Skyscraper? The real question is - where can i get the pubic tattoo?

I Will Not Wear Any More Boring Tattoos

If any of you follow me on twitter or facebook, you may have noticed my reaction to the new Japanese trend of Teeth Tattoos.  The tattoos are decorative, some even look like tiny lady bugs crawling across your teeth - gross! If you interested in a tattoo I definitely can get on board with I would recommend waiting until fashion week when mega-art collector and fashion maven Dasha Zhukova unveils her inaugural edition of 'Garage.' One of the potential covers features  a Hedi Slimane photograph of a lower half of a nude model, whose crotch is covered by a green butterfly sticker created by Damien Hirst. The sticker peels off (inspired by the Velvet Underground album art by Andy Warhol) to reveal a butterfly tattoo, also of Mr. Hirst’s design.  Teeth tattoos = taboo; Damien Hirst temporary Pubic Tattoo = must have fashion forward fall accessory!

'Garage' is slated to be one of the more intriguing magazines to come around in years. A hybrid of Vogue and ART + AUCTION, it is not entirely clear whether this is a fashion magazine that takes more than a passing interest in art, or an art magazine that knows its stuff about fashion.

The magazine, created by Dasha Zhukova, a former editor of Pop, and named after the contemporary art center she opened in Moscow in 2008, includes collaborations between prominent figures of both worlds and blurs the boundaries to such a degree that even the artist Dinos Chapman said his work in the magazine could be described as “a full-blown fashion shoot.” Working with the photographer Nick Knight, Mr. Chapman created a creepy dollhouse in which a puppetlike version of the model Lily Donaldson wears designer duds from Marc Jacobs and Mary Katrantzou.

In a newsstand environment dominated by digital perfection, Garage stands out because it looks almost handmade. The type is an amalgam of fonts, set to appear randomly. Some pages are pure mystery, like a spread that shows a dress called “Lettuce by Alexander McQueen.” It appears to be made of romaine, a creation by Ms. Battaglia and the photographer Fulvio Bonavia. Also included is a Prada dress made of citrus and a Moncler coat of anchovies.

“I hope nobody reads our e-mails back and forth,” Ms. Battaglia said. “We were writing things like, ‘yes, Prada is an orange, that’s genius! And Moncler is a fish!’ ”

Would that make Lanvin a Skyscraper? The real question is - where can i get the pubic tattoo?

ArtTactic - Podcast

I love listing to ArtTactic's podcasts - here is the new one featuring Christiane Fischer, President and CEO of Axa Art Insurance Coporation. First, Christiane discusses how the global expansion of the art market has impacted art insurance. Then, she tells us how often art collectors should have their collections re-appraised, especially considering recent market volatility. Christiane also shares her thoughts on art as an asset class, details current competitive challenges for Axa and elaborates on recent developments in the art insurance industry.


For individual private collectors I prefer CHUBB Masterpiece insurance, while Axa Art Insurance is a wonderful specialized insurance corporation providing a team of in house experts, however bundling all of your insurance policies under one provider makes life so easy! However, if you are a serious collector with a large contemporary collection, experts monitoring the value of your collection is a definite added bonus in a volatile market.


At the end of the day everyone should have their collections every 2-3 years.


http://www.arttactic.com/podcast.php?id=83

Breath of Life for the Merchandise Mart & Art Chicago?

Merchandise Mart Properties, Inc has promoted Steven Levy to become the organization's new senior vice president of the art group, putting him in charge of the Armory Show, Art Platform - Los Angeles,Volta Basel, Volta NY, Art Toronto, Art Chicago, and NEXT. He will fill the shoes of Mark Falanga, who was promoted to become president of the mega-sized property management firm and trade show operator in June after the resignation of longtime head Christopher Kennedy.


As a native Chicagoan who happens to work in the contemporary art market the possibility of bringing new life to Art Chicago is something I am optimistically anxious for. Over the past few years, the Merchandise Mart's biggest fairs, Art Chicago and  the Armory Show, have received flagging reviews from gallerists and the media due to its lax admission standards for exhibitors. Have you noticed none of the big name, blue chips participate, opting to be more selective with their fair choices: notable Art Basel - and its Miami counterpart - and Frieze. 

Levy's hire follows a string of summer staff changes at Merchandise Mart. In June, museum curatorStaci Boris was appointed to run Art Chicago. Company veteran Myron Maurer took over as COO when Falanga took over as president. 

Hopefully with these staffing changes the windy city arts scene can catch it's breath and get gallerists and collectors alike singing, 'sweet home chicago'!

www.artchicago.com