Non Fungibletokens - NFT's

[Richard]

New forms of art are being sold for insanely high prices.
Digital artwork using computer software.
NFT's are digital collectibles that use blockchain technology as authentication.
NFTs make it possible to collect digital artworks in a similar way to paintings, sculptures or conceptual artwork.
Digital artwork can be copied of course but you can only prove ownership of the original with blockchain verification. This allows reselling with many buyers immediately selling the works on at higher prices, seeing their initial investment multiply within minutes. Today, many of these works are selling for more than 1,000 percent of their original price.

“That was a real wake up call for all of us,” said Noah Davis, a specialist in postwar and contemporary art at Christie’s, “to see such significant sums being paid.”
The fine art world is finally starting to recognize digital arts as real art.

[seahermit]

"Insane" is the word alright. There is a sort of psychosis in the modern art world, an "emperor's new clothes" mentality. Real aesthetics have been lost touch with, the visual, physical, geometrical beauty of objects/designs which can be created by humans and which appeal to the senses. Instead, a lot of rubbish which requires little real artistic ability and a lot of pretentiousness such as telling the rest of us that "we don't understand it".

If some people are willing to pay high prices for it, good luck to them. The fact is that "value" represents only what people are prepared to pay at a certain time. If there is another Covid resurgence, even the greatest of fine art is not really of much use to anyone, whereas a simple medical mask costing a quid or two might help to save your life.

I detest much of modern architecture for similar reasons, the twentieth century was a bum period in architectural design. Some exceptions of course, the pedestrian footways added to the old Hungerford Bridge are spectacular, the London Eye is beautiful, some buildings maybe in Canary Wharf. But I have always hated the concrete National Theatre - good example of a Nazi fortress!

[Richard]

There is a high-value market for fine art painting, for example.
You will not disagree with that.
There are market-makers, such as Christie's or Sotheby’s, who have networks in many countries and charge seller's and buyer's fees.
The prices paid may seem ridiculous but fine art acts as a token of value that usually increases over the years.
People are prepared to pay big money for a 'place holder' be it art or anything which increases in value many times over a period.
Trends change and wealthy people listen to investment advice and act accordingly.
Aesthetic beauty doesn't matter and skill doesn't matter any more.
It has not done for a long time.
Basically something is worth what someone is prepared to pay for it on the day.

Money talks!

[Richard]

Also, there is no intrinsic value in art of any kind, be it of any period or quality.
A Turner or Canaletto may cost many millions but is that it's true value?
It is all rather meaningless.
A home or a house, however, has some tangible intrinsic value, regardless of price on the markets.
You can live in a house.

[seahermit]

Fine art indeed has little intrinsic value – it is worth what people are prepared to pay, which is largely influenced by fashion, trends, changing perceptions and snobbery.

Buyers fall into different categories. Some buy art works purely as investments (and often sell them on quite quickly). For me, that is the wrong motivation – art works were created in order to be enjoyed and admired, not locked away somewhere or shoved into a safe for future profit. Others buy art works because they appreciate the craftsmanship and like beautiful things around them – fine if they can afford to indulge their passion, but totally unnecessary to life. Pragmatists spend their money more wisely and would not plaster their walls with fine art, especially during a Covid crisis (although to be honest I might be tempted by a Turner seascape – some hope!).

Funnily enough, very similar principles are at work in other markets. After a long period of not knowing much about watches and having several cheap watches go wrong (or let in water when it rained!), I became interested in more expensive but sturdy, weatherproof, quality devices. I have noticed that watch enthusiasts fall into three categories:

Those who buy luxury watches as investments (or status symbols) and have little appreciation for the aesthetic qualities (although in fact very few brands do increase in value with time).

Those who love the craftsmanship and quality of high-end mechanical Swiss watches and who collect especially old and rare models.

Pragmatists who don’t see the point of a heavily over-priced Rolex or Breitling (old or new), when a very good quartz watch for £100/200 will be far more accurate and won’t need servicing every two years.

I also find the Classic Car TV programmes fascinating. I admire the older cars because of again the quality of design and craftsmanship, many enthusiasts buy them for those reasons and spend horrible amounts of time and money lovingly restoring old models – but they rarely make much profit afterwards! Others treat them merely as investments to be bought and sold on.

But again being pragmatic, an old car won’t hold the road well or drive so smoothly and will burn up a lot of petrol (and emit illegal amounts of this and that) – so what’s the point? Modern cars are largely very bland and ugly but they do the job alright and will get you to the supermarket just as well as an E-type.