Recently, Leonardo da Vinci’s, Salvador Mundi, sold for a record $450 Million…the most expensive painting in auction history.
If you were the holiest, most spiritual person in the world, you wouldn’t spend your money on a painting. Instead you would probably use your money to help others.
Put it in perspective.
$450 Million is about the cost of the Russian businessman’s (Roman Abramovich) mega-yacht that recently docked near Trump’s house in Palm Beach. (Sorry, I just had to throw that in.)
When you see artworks commanding eight and nine-figure prices at auction (including a $110 million Basquiat this past spring and a $179 million Picasso in 2015), you have to ask, “Why are people paying such obscene prices for artwork?”
The answer is simple.
Billionaires need to hide their money.
It’s also a sign that the markets are getting overheated.
Let’s take a quick look at other expenses involved with investing in expensive art:
You need a lawyer to limit your tax liability just to get your painting out of town (avoiding export regulations)
You need to ship it from point A to point B. (This involves using “decoy trucks” to avert theft)
You’ll need to insure it. (Who wants to insure a $450 million piece of art that’s, literally, irreplaceable? No one.)
Needless to say, it’s more involved than simply buying a nice painting and taking it home to hang in your living room.
It’s also another reason why you need to pay attention to events like this and “Connect the Dots” of how money is moving around the world.
Instead of gawking over billionaire purchases, learn how to use these events as a sign of changing investor sentiments.
Read more (HERE).