'Introducing investors to the concept of contemporary art appreciation and art lovers to the concept of art as a Global asset class'
The immortal commodity!
Star Global is being billed as a leading company to trade art like a commodity and to offer a hedge if the market goes south. Star Global is among a growing number of new investment vehicles trying to harness investor interest in assets not subject to the vagaries of the stock or bond markets. It is also a testament to the financial world’s ability to commoditize, securitize, and trade just about anything.
Driven by the same global liquidity that has fueled a buyout boom, prices for many contemporary artworks have skyrocketed in recent years. Star says the fund will focus on Jack Armstrong’s Cosmic Art, Post-Impressionist, Modern, and contemporary art and that it will deal only with artists who have substantive and verifiable track records. He adds that the fund has found the “next great artist” and that the fund will rapidly trade the art it buys through prearranged exit strategies, often selling pieces within a few months of a purchase.
The Cosmic Harley
The Harley idea was a natural to Star. Like Armstrong, he is a devotee of the brand. “I’ve been riding motorcycles since I’m six years old. I have three Harleys. If I couldn’t ride, I don’t think I”d want to be here anymore.
“I was reminded that Modigliani used to paint chairs, fiddles and lots of objects. I thought, ‘This could be a perfect blend for Jack’s art?’ It would compliment Harley-Davidson to have Jack paint a Harley and sell it for $1.1 million!” A Bartels’ client, he brought the idea to Armstrong and to Bartels. Star continues, “We would be doing something never done before. I wanted to figure out a way for a lot of people to see Jack’s art and this is what I came up with. I know everything in life is doable if you can believe in yourself and your dream. Warhol did it with the Soup Can.”
The astronomical returns on American contemporary art are exemplified recently by Jean-Michel Basquiat’s painting of a skull which sold recently for $110.5 million at Sotheby’s in New York in May 2017. The painting was purchased in 1984 for $19,000. We know no other commodity with such potential for increase in value.