Welcome to Rye Country Day's Economic Blog. Here you will find perspectives by students taking Economics at Rye Country Day School. It is meant to be a forum where students can openly express their ideas and take positions on relevant economic issues. I urge everyone to participate in presenting their own ideas in an open manner so that we can all learn from each other. Regardless of whether you are currently taking Economics, everyone is invited and encouraged to comment on articles and get involved. Feel free to e-mail me, Alex Osborne at firstname.lastname@example.org , with comments or suggestions.
Wednesday, January 10, 2007
Featured Entry - The Art of Pricing Great Art
The concept of spending millions of money on a piece of Art is very strange to me. My first reaction was, how could you have That much Extra money? And can you think of nothing better to do with it? But then again, from a financial perspective, investing those extra millions in art is actually a good idea. With the fluctuation in economy and tax rates, buying expensive art is an easy way to protect your money from being taxed and re-taxed as the rates change, allowing buyers to only paying a purchase tax. Also, it prevents your money from being effected by any temporary inflation and deflation. However, the purpose of the article, and quite an interesting question, - Who determines how much any given piece of art is worth? I think the key to this has much less to do with the type of Art (As much as I try to rebut that) and who the artist is as we think. Along with how much the artist might ask for, I think the worth and the value of a piece of Art work, is as much someone else is willing to pay for it at any given time. And I truly believe that logic applies to most things not holding a set price.