How the Art Market Thrives on Inequality
THE NEW YORK TIMES
By Adam Davidson | Published: May 30, 2012
Art is often valuable precisely because it isn’t a sensible way to make money... it does a more powerful and subtle job of signaling wealth than virtually any other luxury good. High prices are, quite literally, central to the signal — you don’t spend $120 million to show that you’re a savvy investor who’s hoping to flip a Munch for $130 million. You’re spending $120 million, in part, to show that you can blow $120 million on something that can’t possibly be worth that much in any marketplace. It’s part of the economy of a small subset of the super-superrich...[link]
By Adam Davidson | Published: May 30, 2012
Art is often valuable precisely because it isn’t a sensible way to make money... it does a more powerful and subtle job of signaling wealth than virtually any other luxury good. High prices are, quite literally, central to the signal — you don’t spend $120 million to show that you’re a savvy investor who’s hoping to flip a Munch for $130 million. You’re spending $120 million, in part, to show that you can blow $120 million on something that can’t possibly be worth that much in any marketplace. It’s part of the economy of a small subset of the super-superrich...[link]