Tuesday, May 4, 2010

Picasso Painting Sells for Record $106.4 Million

Pablo Picasso's 1932 portrait of his blonde mistress sold for $106.4 million at Christie's in New York on Tuesday, setting a new world record for most expensive work of art at auction.

The painting, "Nude, Green Leaves and Bust," sold to Christie's specialist Nick Hall, who fielded bids from an anonymous telephone bidder, according to WSJ.

Is this a consumption good, or an investment?

It really depends upon who the annonymous buyer is and the reason for the purhase.


  1. Mr. Wenzel,
    If you get a chance could you please look back at your Marc Faber post of May 3 and answer the question that Maurizio and I have asked. Namely, if China is indeed pumping massive amounts of money into the economy (the necessary precursor to a bust according to ABCT) then why are all these Austrians, Jim Rogers and Peter Schiff, disagreeing with Chanos' contention that there will soon be a big crash in China? Is, as Maurizio asks, Austrian Business Cycle Theory being contradicted by Schiff? (I would include Jim Rogers as well when asking if Austrian Business Cycle Theory is being contradicted.) Thank you very much.

  2. I actually think Faber was just in the news stating the there might very well be a burst in the Chinese real estate market in the next year or so.
    I really don't think they denied a property bubble, I actually recall Rogers saying on TV that there is a bit of a bubble going on in real estate. I think they feel that China can sustain it much better than the US could withstand its bubble because they do not have a service economy that depends on people spending and they still produce a lot of goods the world demands so their economy can keep churning.