The Economics Of The Art Market: Why This Painting Isn't Worth $450 Million

[@EconomicsExplained]

Huge thanks to our mates at Squarespace for making this vid possible. ❤️If you want to get 10% off your own Squarespace site (while also supporting EE!), be sure to check out ➡️ squarespace.com/economicsexplained

[@nicholasrevill6610]

Yay, you got sponsored by Squarespace, you are a real youtuber now

[@doggobound3707]

I'm pretty early

[@susanhainan188]

Hey EE, can you buy me a burger cause I’m hungry

[@jaiparwani4279]

Paintings are strokes of brush on canvas KZbin is a combination of 0 and 1 on semiconductors

[@Rizky06]

The Clown Prince could have spent his millions on hair plugs and weight loss programs or how about his own people. Now with the plunge in oil he'll have to heat his tent with camel dung.

[@georgegeorge9448]

"The high end art market is not filled with creative artists...it's filled with creative accountants" - that my friend, it's brilliant said

[@FinanceOptimum]

Here's how the Art World really works: Step 1: John Doe is an art dealer. He persuades his friends Alice and Bob to buy works by an up and coming young artist, for $2 million each, on the understanding that they will be a good investment. Step 2: Over the next few years, John Doe uses his position to hype the artist. He hires people to write about the artist in academic journals, organises exhibitions, helps the artist to 'win' prizes, etc. Step 3: John Doe puts some of the artist's works into auctions, and bids the prices up with the help of friends. As he is ultimately buying from himself, the only cost is the auctioneer's commission. Step 4: Ten years later, Alice and Bob own works that are worth, on paper at least, $10 million. Step 5: In the meantime, Alice has just pulled off the real estate deal of a lifetime, and made a huge profit. Unfortunately, she now owes the IRS $10 million. Step 6: She decides to donate the painting to her local modern art museum. The trustees are happy to state it's value at $10 million. The IRS accepts the valuation and allows Alice to write of her $10 million tax bill. She is now a noted philanthropist, and she gets a wing of the museum named after her. Step 7: Bob, on the other hand, isn't doing so well. He needs cash quick, but he can't sell his painting on the open market - because it isn't worth very much without John Doe manipulating the price. Step 8: Bob goes to his bank and asks for a loan, using the painting as collateral. However, the bank wants an independent assessment of its value, so they ask a world expert on this particular artist - John Doe. John Doe confirms that, based on previous auction prices, it's worth $10 million. Step 9: The bank agrees to lend Bob 70% of the value - $7 million. Step 10: So Alice has saved herself $10 million in taxes from an initial outlay of $2 million. And Bob has gotten himself $7 million to play with from an initial outlay of $2 million. *DISCLAIMER: THIS IS FOR ENTERTAINMENT PURPOSES ONLY, AND DOES NOT CONSTITUTE MONEY LAUNDERING ADVICE. ALWAYS CONSULT A TOP NOTCH TEAM OF LAWYERS AND ACCOUNTING EXPERTS WHEN LOOKING TO LAUNDER MONEY PROFESSIONALLY*

[@zytolen5356]

Thanks! Another John Doe will born.

[@randomcatmeow1394]

When looking to launder money professionally xD

[@bobbest1611]

you forgot 'professional art assessment by experts (in need of money)'.

[@thehoneydeev]

🥳 I loved your disclaimer

[@CODY-so8dn]

Whats the current art/stock ratio currently?

[@JupixG]

Video idea: the economics of megaprojects (e.g. the pyramids of ancient Egypt, the great wall of China, Manhattan project, International Space Station)

[@gregisbased5205]

That's a great topic that I think about often. It's a nation investing heavily in creating a wonder of the world for the purpose of fame or long term stability and it's fascinating. Good idea.

[@nehukybis]

The economics of something like Stonehenge are really different from the economics of the Manhattan project, though. Megaprojects started showing up all over the Eastern hemisphere during the late stone age and anthropologists can't agree why. The leading theory is that you had people tied to the land like never before (in other words, they couldn't just run away), plus you had an agricultural surplus, and that led to social stratification... but now your local God-Kings had tons of people with nothing to do for part of the year. So they had them dragging and lifting stones as busy work, essentially, to keep them too tired and distracted to revolt. And now you've got permanent proof that you command forces far beyond the reach of mortal men.

[@EconomicsExplained]

Ooooh I like that *writes down furiously*

[@gregisbased5205]

@@리주민 bro 😂

[@WizardGrizzlyBear]

@@EconomicsExplained Your the best, keep on producing content! Thanks

[@nxli97]

Ah yes... I can finally move money and avoid taxes by auctioning and donating my drawings from pre-school.

[@EconomicsExplained]

I mean, don't let your dreams be dreams...

[@jon-unicorn-doxxer]

well,..If its good..and you have a name of your self why not,,,

[@livethefuture2492]

Start by selling it to your family members, then artificially raise the price and create hype around your paintings, and eventually you can make a significant profit from a few pieces of paper.

[@rvoight92]

Just say your dog did them

[@fnorgen]

"I'm not making any more of these..."

[@SimGunther]

No, but a painting of a money printer going "BBBRRRRRRR" would be worth $450M

[@SahasaV]

Ironic, the money printer is only worth 450M because it went brrrrrrr

[@samuelmitchell5937]

@@리주민 I don't know why that cracks me up so much lol :D

[@EconomicsExplained]

True Art!

[@intensellylit4100]

Print an oak stake

[@manictiger]

I can't wait for BRRRcoin to come out. Well, I guess we have Bitconnect. That's pretty close.

[@CatsMeowPaw]

The funniest thing about the Da Vinci painting is no one is really sure if he painted it. If it was a student of his then the value would plummet to near nothing. The actual painting itself doesn't change, but the perceived value around it does.

[@sherifnabil9663]

It’s not even great

[@rickrandom6734]

Paintings Jesus looks like he has smoked too much weed.

[@agentburbank0076]

@@sherifnabil9663 Davinchi was mid

[@georgeofhamilton]

Gotta love that "1812 Overture" playing really quietly throughout the video.

[@Arceydelaborbolla]

You've just saved me from madness, I recognized the dance of the flowers at the begining and part of the 1812 overture, but couldn't get it at the 15:32 mark haha. Thanks a lot for my mental health I'd probably search it for all night.

[@Sacchidanand]

@@Arceydelaborbolla, More audible around 15:47 onwards

[@КонстантинГеоргиев-и9ф]

Do a video about Bulgaria's economy. We've got the world's highest rate of population decline and severe brain drain. It'll be an interesting video for sure.

[@Je.rone_]

Another great video from economics explained

[@SupremeDonkeyNumber1]

As usual

[@EconomicsExplained]

Thanks mate :)

[@darlantro]

4:00 Picasso is a funny example because he was incredibly prolific, making thousands of paintings, tens of thousands of illustrations and >100k prints. He was a driven man, and existed in a time when his art was valued and commodified, and eventually leaned into it quite a bit. You used to be able to get a Picasso print or sketch for a few hundred bucks, because there are soo many... now the cheapest are a few thousand. This is in contrast to most artists from 100 years ago who indeed had a relatively miniscule output of like 100 paintings, or 50 sculpture, and 1000 sketches, and did not embrace print making.

[@Gator_Chub]

"The Greater Fool Theory? I wonder where I have seen this before...." Dutch Turnip Mania, South Sea Bubble, Great Depression, Dot Com Bubble, 2008 Real Estate Crisis, 2017 Bitcoin Bubble, etc..... *"Nah, Stonks only go up."*

[@mirzaahmed6589]

Tulip, not turnip.

[@londonspade5896]

@@mirzaahmed6589 That's where you're wrong kiddo, better get your hands on some turnips before they go to the moon

[@GarlicPudding]

"Bitcoin Bubble" Hoo boy, prepare for triggered crypto traders...

[@ThrottleKitty]

lol turnips lol at dumb rich people who ever thought a mystery crime token makes a good investment

[@CliffCardi]

Mississippi bubble (France's equivalent of the South Sea Bubble, happening at the exact same time 300 years ago)

[@raylopez99]

The closing line is killer: "the art world is not filled with creative artists, it is filled with creative accountants" lol! Reminds me of a book by the Aussie writer Peter Carey "Theft: A Love Story". Word!!

[@gtrfreak2914messiah]

I love this episode so much, it made me realize a lot of things especially the effectiveness of the very sweet sounding bullsh!t of contemporary art and why it't so popular today lol

[@duo496]

That banana taped to a wall that was priced in the millions: '-' -_-

[@carlosandleon]

I'd buy it.

[@DrunkAncestor]

리주민 it’s not about connections, it’s about the contribution of meaning that the work brought to the world. You can tape a banana to the wall, but you will only be imitating the original. An imitation will not bring any new meaning into the world.

[@waharadome]

@@DrunkAncestor We don't seem to mind for clones, otherwise there'd only be one valuable Pollock painting

[@geckoo9190]

I have to say, for first time in my life art makes sense, I mean I like art, I some times buy pictures or posters of famous painting, mainly impressionist paintings, but I am not willing to pay millions for one no matter how famous and dead the author is. But you described them like a huge million dollar bill on the wall, I see how some people may be willing to pay for that.

[@jordanbagambe8642]

Absolutely love this guy's videos. Yet another great educational one. Brilliant work!

[@EconomicsExplained]

Thanks mate :)

[@mnorth1351]

Wow. This really helps explain how so much modern, Ugly art still gets made, talked about so much, and valued so highly. I could never understand how people loved ugly paintings and statues so much. I knew art could be useful for moving money around off the books, but the whole system, from artificially driving up the price to multi-million dollar tax breaks - WOW!

[@generalflix]

Once visited a van Gogh exhibit, in one room the guide mentioned that the pictures in the room could very well be worth more than a billion dollars. I stood on air craft carriers that were worth less than some oil on paper what the heck

[@aBirdAndHisBoy]

They're literally pieces of history

[@Dayvit78]

@@aBirdAndHisBoy Pieces of history that can't protect your life and home.

[@Dayvit78]

@none I reread my comment and I don't even know why my point was. Maybe I was conflicted, because I love history, but I also love aircraft carriers :)

[@rickrandom6734]

@@aBirdAndHisBoy They are pieces of canvas with some paint on them. Their value is just imagination. Someone has made up story which says they are very valuable. Believers believe.

[@aBirdAndHisBoy]

They're literally original paintings that defined art history. @@rickrandom6734

[@pottingsoil]

"A few hundred original picassos" Hahaha, boy let me tell you something...

[@tylerdurden3722]

Are referring to some more "original" Picassos 🤔?

[@harshjain3122]

There are about 50,000 pieces, arent there?

[@zabintasrik4488]

Well the batshit he made clearly didn't take too long so yeah there's quite a few

[@livethefuture2492]

Wait Picasso painted 100 of the same piece?

[@luisfrodriguez6641]

@@livethefuture2492 I've seen there are series, such as plates, where several of the same Picasso were made

[@joshanbabu5791]

"People are dumb" 6:30 That's it. That's the explanation I wanted to hear.

[@TheMagicLemur]

This is an interesting explanation of the economics of the art market, but can you explain the economics of the music industry, especially of classical music. Love the music you use in the background to your videos btw.

[@kzsposeidon3121]

Reminds me of "The accountant" where he keeps artworks, first edition comic books etc in his trailer so he would be able to get money fast everywhere without being tracked

[@scifience8297]

Please do a video on fascist economies

[@Croz89]

Hmm... I don't usually think of fascism as an economic system, unlike communism or capitalism. I would think that of all the fascist governments that have ever existed throughout history, each one probably had quite different economies. So you could do Nazi Germany, Mussolini's Italy, or Franco's Spain (and all the other examples outside of Europe) but not all together. But maybe there is something that economically links them, I'd be curious to find out.

[@felipec.2854]

Their economic system is pretty good

[@foty8679]

@@Croz89 Germany was not faschist. It was national socialist. Faschism is a Italien thing, and has differences.

[@Croz89]

@@foty8679 Well, it didn't _call_ itself fascist, but most people do seem to consider it fascist, and it does tick most if not all of the boxes.

[@Famygo]

Hello :). Please consider making a video about the economics of Peru! I would thank you from the bottom of my heart and i think your fans from Peru would benefit a lot from your knowledge! Thank you and keep going:)

[@saltsolace3018]

This is so much money, that every subscriber to this channel would need to donate $1000 each!

[@arroo2460]

Specifically 1,020.4 Dollars

[@arroo2460]

And if Pewdiepies 100Mil subscribers were to buy this painting they would only need to pay 4.5 Dollars each

[@EconomicsExplained]

I mean, Patreon link in the video description....

[@dr.feelgood2358]

it was always demoralising as a young art student spending a long time on a piece of art, and then seeing Jackson Pollock selling for millions.

[@riverresidentfilms1902]

Pollock was a pioneer in the abstract expressionist movement. If you don't understand why his work is worth so much then perhaps you have not looked into him enough. At first sight, you may think that anybody could recreate his work, but this is not at all the case. Check this out! www.discovermagazine.com/the-sciences/pollocks-fractals

[@patthonsirilim5739]

@@riverresidentfilms1902 all art is just paint on canvas they are just a tool used to enlustrate expression there no good or bad painting there is just painting

[@boyfromthemountains]

Find your self a good dealer and you'll be a millionaire too! 😎

[@nekoy2010]

thing is, works of artists of modern or contemporary styles still took a lot of time and effort into it. Yves Klein, for example, created his own color using different types of chemical stuff for his monochromes, the IKB (hex #002fa7 btw)

[@abiekanzy7619]

Check pollock latter years, its not just paint flailing arround the canvas. His piece the deep is amazing

[@ReservedInvestments]

Quite possibly the greatest video ever done on the high end art market. I will be covering this video on my own channel. You covered it all; speculative bubbles, taxation, and ego. Superb!

[@nicfeller]

So sad that at 13:00 he puts up the statue of Marcus Aurelius who would vehemently disprove of "fine art" haha. Thanks for the great vid though!

[@JulianCarr24]

Aye! That residential shot in the at 0:41 is of my neighborhood in LA, that's the 100 block of Mansfield Avenue in Hancock Park!

[@scottkirby5016]

There is also a similar thing to note. Criminals are using stolen art in interesting ways, as financial markers/chits in non-public markets. . So in another way to move value about , sometimes in effectively escrow accounts (hold while waiting for delivery of a drug shipment for example), cash holding mechanisms (the value density and transport issue), and other ways. The book : The Irish Game: A true story of crime and Art (my Matthew Hart) is a good introduction to another side of this use of high end art as a financial tool.

[@frederickthegreat2230]

new logo, looks great

[@EconomicsExplained]

❤️

[@korinthian7313]

Keep seeing Zoidberg in my head. "One art please." Lol

[@stevem815]

You aren't accounting for the status signalling properties of owning a Picasso. Not wanting to buy another Picasso isn't a 'dumb' person not understanding opportunity cost. They are just seeing the massive diminishing returns in status points from buying extra Picassos once they've already got one. I think this is true with a lot of luxury items, the expenditure Vs signalling properties graph is exponential, not linear so once you've got a Louis Vuitton bag, you need a Lamborghini to jump to the next incremental gain in status. Buying another bag might be almost meaningless.

[@randomcatmeow1394]

You are actually quite accurate, there is a term in economics that is known as diminishing returns. Basically for all products, the first good you buy will always give you the highest satisfaction with subsequent becoming lower and lower until its not worth it for you to buy more it. Its like eaying an ice cream, the first scoop is delicious and cooling and by the 20th scoop you will be feeling sick and stop.

[@kaihinton6623]

Do a video about the economical practicalities of communes and their pros and cons. Maybe you could even talk about what if they were implemented on a larger scale, kind of like the USSR except the communes own the factories instead of the government. Could really be a very intriguing topic to cover.

[@ilikedota5]

Some nicetakeaways as per usual like the definition of a collectors item, the fact that economists finally pay attention to psychology of buyers and sellers, the inapplicability of opportunity cost, the speculation angle, how art is just a dollar bill of sorts

[@rstomar4388]

I have to say as a student of economics who is obsessed with countries your channel is a gold mine

[@HelgiWaag]

Customs officer: So about that $3mill watch you are attempting to cross the border with....

[@isaacbejjani5116]

I'm sad the squarespace site is down. I really wanted to see more haha. I couldn't find that s&p index vs. art speculation chart u had. Ngl I kinda wanted to follow that statistic. But love the work keep it up!

[@OZVify]

There are actually a lot of counterfeit arts appearing in auctions these days, way more than anyone can think of.

[@rickrandom6734]

But if every one believes it is real, then it is doing what it its supposed to do properly and everyone is happy. No harm in it.

[@jacobarmour6325]

Only a slight touch up to the logo but I love it

[@alexanderb3340]

Really informative video! Thanks for your work.

[@johndirac6707]

0:28 Uhhhhh, is it just me or do those two graphs have nothing to do with each other.

[@uroskn]

You're not the only one. At quick glance, 2011 and 2015 are another record setting peaks, that didn't result in downturn.

[@parkerhope387]

agreed

[@jason2mate]

Your too focused on the peaks, look at the general growth.

[@NinjaNuggets21]

My favorite video on this channel. Thank you

[@lordbunbury]

Every investment is speculating. Paintings are just as useless as expensive cars, gold watches and really anything once you have billions. There are only a couple 100 paintings that are worth ridiculous amounts and they are all paintings with importance in art- and human history. Most paintings are worth nothing. Even most Picasso’s are less than 10k. Some paintings that are of great importance in the history of humankind are worth a lot because there are enough people with stupid amounts of money and not enough masterpieces on the private market.

[@haydengraham1989]

Hey! Love your videos, have been watching for months and have learned so much! After watching this one, I immediately thought of the watch market. Is that a topic that interests you to do a video on at all? Thanks!

[@logankellogg4406]

1812 overture in the background was a nice touch

[@danielshaikhali5108]

I am going to paint a blue colour on a canvas and it’s gonna symbolise about 2020 and my grand kids will sell it for 500$ million dollars

[@derekofbaltimore]

hmmm... if they Make (like art) the 500 mil, then the exchange can be a performance piece combining two generations and two pieces of art. Im sure that experience has to be worth something

[@Mythhammer]

500 million? That might get you a cup of coffee, if things continue as they are...

[@lioraselby5328]

@@Mythhammer uh what country's inflation rate are you looking at

[@Mythhammer]

@@lioraselby5328 What happens when a country starts printing up currency in the trillions out of thin air?

[@lioraselby5328]

@@Mythhammer well it kinda depends if they have the military might to back up their currency's status or not.

[@AdredenGaming]

Man your channel is good

[@jetinny]

I love this video! Really explains the niche topic of the collectors market :)

[@blitzlightning985]

The music in the background when he is talking about forgoing 5 million £ is 1812 by Tchaikovsky if I’m not mistaken? Correct me if I’m wrong I’m fairly sure I recognise it but I’m not 100% certain

[@michaelstollairetbarceo3287]

It's always humorous when people try to pair price with utility. All I say is artwork and sports memorabilia, and they go quiet. All that really matters is speculation, and expectations of a future ROI will make people pay anything for anything.

[@Jessie_Helms]

Would you consider doing a vid on the Team Fortress 2 economy? Or the steam community market in general? It’s kinda similar to the art market, with plenty of cheap stuff that’s better than nothing, but some insanely expensive stuff too. I think a golden frying pan is like 10K USD and a Burning Flames team Captain is $500, not to mention the knives and AWPs in CSGO worth a car.

[@conradkolo]

Fun fact: You know how he said he isn't sure if someone ever used a watch for emergency cash flow? Well, maybe not someone taking flight from a sketch nation, but pimps. Cash seized when you're arrested never gets given back to you. They do however have to give back your belongings, which is why pimps would walk around drenched in gold stuff.

[@paulbuono5088]

Best 17 minutes of my day...thanks!

[@thetops7259]

So glad you got a sponsor!

[@frenchmarty7446]

Correction #1: Technically there is a way in which valuable art can generate cash-flow, leasing it to art museums. While the "yield" is almost always insignificant compared to the cost of the art work itself, it does still happen. Correction #2: "Greater fools" are not the only buyers in the art market. Art museums value works of art as legitimate assets, so long as they attract paying viewers or donations. While this is insignificant when you're talking about a $450 million dollar painting, there is at least _some_ productive value associated with a valuable work of art (and when I say "productive", I simply mean having use in providing a service to consumers). I don't disagree with the spirit of your video, I just thought I would give some input.

[@JD-cf4or]

Last time I was this early Van Gogh could use headphones

[@Snp2024]

One of most famous SIMP.

[@IdoloOcelot]

A video about the economics of wine would also be interesting.

[@muzishabangu1938]

You are really talented, i instantly subscribed

[@Bylov6812]

That painting says "Bless ya soul, ni**a."

[@YourboiM]

Blessed painting

[@alexpotts6520]

Kind of depressing to think when I next go to an art gallery I'm looking at tax-dodging schemes.

[@ozzzer]

0:53, 'retire comfortably' after investing 450 m... ill just keep 450m.

[@LaFranceBonjour]

Art can generate an income as an investment piece. Art purchased for museums generates income and pieces by extremely famous renaissance era painters are guaranteed to sell for high figures based on its age and history and rarity.

[@10908070605040302]

another day in corona lockdown , EE uploads , yes , thank you aussie economics man

[@EconomicsExplained]

You are welcome mate, hope the isolation isn't driving you crazy!

[@10908070605040302]

@@EconomicsExplained it all good mr Kangaroo god , somebody made the joke recently and it rings true: Just like when your computer is acting up, sometimes the best thing to do is to "turn it off and turn it back on again." Thats kinda what is happening on a worldwide scale right now haha EE if you reading this , would you please ever consider making a video on the merit of balancing capitalism with socialism? like germany and others have done in some ways , the "social market". I see the debate worldwide, and see so many say "pure capitalism is the way, 25 billionaires owning as much wealth as the bottom 50% of the human race is fiiine, just work harder you naive commie, climb everest barefoot !" , and I hear the others say "we need to seize the means of production, all activity should be ran by co-operatives, eat the rich people" , and I just think they are both terribly wrong! Balance is actually the answer to everything in life, balance one way with the other, sometimes this, sometimes that, it applies to EVERYTHING. yin and yang is a powerful symbol. And after much consideration I really strongly feel that it is the key to economy too. You have an audience, and your economic discussion will be on youtube for years and years, forever if you dont take it down. And I really think its a valuable perspective to circulate. Of course only if you agree with it yourself ha :) If somebody has a good business idea, and they execute it right, well done , make some money, employ people, buy property whatever, good, Incentive ! "BUT" (for example) once you are making 10 million, net, take home profit a year, you pay 70% tax on everything after that. Of course, there are tonnes of details that would need to be worked out, but we could do it , we shouldnt avoid doing the right thing just because it will be difficult. for e.g "What about companies that require way more than that in capital, just to operate?" Perhaps anything that big, should be nationalised. profits are privatised and losses are socialised these days, it really isnt the best system at the moment. for e.g Just like the ruling monarchy system wasnt 200 years ago. The airlines stock buyback in good times, now asking for taxpayer bailouts, cmon humanity, we can do better. There is a point where incentive becomes greed. And its bad economics to have sooo much money hoarded in the hands of so few. Anyways , I hope you consider it please, on behalf of ned kelly, pierce brosnan, and ABBA, thank you , all the best to you , yeehaw

[@eternal0flare]

There is also artwork leasing to corporate offices on 3-10 years contracts around, so in some cases it can generate cash flows.

[@benisman354]

The art market has to be one large money laundering scheme.

[@Ghorda9]

just like the housing market.

[@danielc6106]

Not really. Most people buy art because they like it. I know I do, and most art doesn't cost so much. Buy it if you like it and can afford it.

[@InvestorCenter]

Why buy stocks when you can buy art?

[@mouseluva]

Man, this game is really rigged, huh? Also I'd like to recommend the channel ArtAssignment for anyone who found this video interesting :) They do a lot of videos on the value of art (culturally, economically, historically, personally, etc) that tie into this sort of idea.

[@xaviotesharris891]

M'kay, but my off the cuff answer to your first question at 2:13 is: History and our feelings drive the art market. That is, art has no intrinsic value (outside of Masterworks, I guess), which makes it just an eternal bubble determined by how much extra money people have lying around. I will now commence to watching the rest of your video to see if I'm right.

[@nefwaenre]

This isn't even the original because 1. There has been restoration done. Even when made, Da Vinci wasn't always the only one painting. 2. All of his paintings come with his practice copies and copies in general. Mona Lisa has 2 copies. The Last Supper has 3 (including practice one).

[@abhinavbharadwaj4629]

Oh man, everything is a lie.

[@EconomicsExplained]

we prefer to call it a metaphor for the untrue.

[@ihl0700677525]

Not at all. This is why "taxing the rich" is a stupid idea. We should build a system where it's more beneficial for the rich to keep investing their wealth in a more tangible way (e.g. funding new startups) instead of looking for a way to force them to "pay their fair share", which create incentive for these "tax evasion" and "money laundering" schemes.

[@foundationsmedicalinformat2420]

This one was en eye opener.

[@johnathansteve6148]

I learnt to manage my money through investments and it really works for me. They say money can't buy happiness but poverty can't buy anything.

[@ryanmckenna2047]

It would be great to see more videos on other unique items like this

[@thebirdmapper357]

Magnificent video! What about economics of writing a book next? Keep up the good work as always.

[@Manuel-gu9ls]

“you can’t a price in art” to this day and age it seems contradictory...

[@theisixi1507]

"yOu CaNt A pRiCe In ArT"

[@theisixi1507]

@Egg T wdym

[@benjamineastman9429]

High end art can generate cash flow! If I have a small museum, if I buy that Da Vinci I can probably charge more per head for people to visit!

[@drjonbear7517]

Absolutely spectacular. Really enjoyed this one, really interesting. Great work dude.

[@lobemusonda952]

I've heard enough. Time to buy a million dollar painting and watch

[@EconomicsExplained]

now to make a million dollars...

[@Septimus_ii]

You really need to buy 10 to get the best deal from the auction house

[@daniell1483]

I love your videos. They give such a thoughtfully condensed pack of financial info to people like me, who would otherwise never understand this financial world.

[@lukecarroll4080]

Where does darth vader go shopping The darth maul

[@jaiparwani4279]

The darth mall

[@triadwarfare]

Does the greater fool theory apply on audiophile equipment?

[@samuelspencer5047]

Lovely contents, I have learnt some things from your content videos.

[@FredFierling]

The maneuver described only offsets tax on other income if selling the painting to yourself doesn’t trigger a taxable capital gain.

[@mothekgimaruma2259]

But about the capital gains tax that one will be charged from you "selling" this artwork to the auction house ?

[@kenoliver8913]

Then you've incorporated the nominal owner in the wrong jurisdiction. Plenty that don't have CGT, and also some that exempt worlks of art.

[@clarimondrocha5121]

Please make a video on cars that go up in value

[@NovelNovelist]

I think the premise that someone is willing to pay a given amount of money for something if they weren't willing to sell it at that same price is pretty patently false, and not because people are irrational. There are plenty of situations in which someone might need/want only one (or some other quantity that they've already attained) of something, but no more. As a macabre example, imagine someone offering you $10 million for a human heart. You own a single human heart, your own, and you obviously can't sell it, for any amount of money, if you wish to continue living...but that doesn't mean you would turn around and pay $10 million for a SECOND human heart. A SECOND human heart would have no utility. Granted this is an extreme case, but plenty of items have limited utility after a given quantity but might have plenty of utility up to that quantity. And they might be in short enough supply or difficult enough to come by that you wouldn't risk transacting them. I mean on a much more basic level, if I pay $100 for groceries, I probably wouldn't turn around and sell them for $100 -- because I need/want them and don't want the hassle of having to go back to the story and re-buy them -- but I also definitely wouldn't pay $100 for them again (in the short-term) because I've already got a perishable version of everything and need to use it up! The groceries are only worth $100 to me ONCE in a given interval. And that's not irrational at all. It's quite reasonable.

[@priestmorrison6564]

WOW, thankyou!!

[@rexo2993]

singular personal emotional attachment doesn't matter in pricing what about when there's a plural societal attachment do the economics change in that scenario?

[@blag6666]

The best channel for economics, that i found so far.

[@eror151]

i would argue that you could generate cashflow with a painting, renting it out to galleries and so on :)

[@basil8300]

Hey mate, can you clarify your example? If you buy a painting for 1m and then buy it again at an auction (from yourself) for 10m you didnt mention that you still need to pay the capital gains on that $9m profit. So there are no tax gains from this. Have I misunderstood something?

[@StickmanA]

Modern billionaire here, one expensive painting please

[@zhongmingwu]

1. This may be the best video of this channel by far. 2. There must be a real story behind the tax strategy described here; maybe someone knows a link.

[@surajshrestha7679]

I am awed by this video.

[@umutbudak8004]

I love your videos! So insightful!

[@DeeJayy741]

Can someone send me a link to the Discord? The link in the description is expired.

[@petyobatakliev7012]

Woah! i knew about Richard Mile, but u just blew my mind. Best channel on YT!

[@wukongnordic3748]

Hey EE. Can you do an "Economics of advertisement"? 'Cause the fact that you highlighted Apple's Display at the end of the video really interests me.