May 19, 2013

But...but...it was perfect!

1 Comments:

Blogger First Sea Lord said...

You know, as I think about, the problem with this isn't so much the idea as the lack of capitalization. The high-end art market, where this really might work, deals with multimillion dollar artworks (the Klimpt that sold a couple years ago for over 550 million, comes to mind) and famous art is often a economic destination for cash as an alternative to stocks and bonds- hence the current art boom, (a market which seems to cycle while, very generally, leading the Dow as an indicator.)

I would consider buying certificate stock in a world famous painting on a market trading in its value. Assuming it's insured against physical damage, it will never lose all of its value; it has an intrinsic worth. It seems somewhat comparable to real estate.

But to really turn it into a exchange, you're going to have to drop billions into it, easily, not millions, when a few Picassos are worth more than an entire San Francisco neighborhood. 5 million is probably the worth of the art in Steve Martin's guest bedroom.

May 20, 2013 at 10:50 AM  

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