Prices are soaring in the contemporary art market, observes Mrs. M, thanks to the super-rich. Isn’t it slightly ‘fishy’ that in spite of the state of the US economy and the weak dollar that higher and higher ‘record’ prices are being achieved?

Auctioneers are boasting that the new, super-rich are making the contemporary art market recession-proof. A Francis Bacon triptych of self-portraits purchased three years ago for $5.2 million has just sold for $28 million. Richard Prince’s Man-Crazy Nurse #2 bought five years ago for $100,000 sold for $7.4 million. A Rothko purchased in 1999 for $11 million and a Sam Francis which cost $2.4 million in 2001 sold for more than $60 million. This is as good as having a license to print money. These price increases represent 5 to 20 times the original investment. Where else can you put money to reap these kinds of rewards in a short time? Auction houses now offer vendors a guaranteed sum, usually at least ten times the purchase price of the art work, to encourage them to sell. The vendor receives this guarantee sum, whether the paintings are sold or not.

This would be like an estate agent guaranteeing me ten times the value of my house if I will sell, whether or not a buyer is found. If a buyer isn’t found, my property belongs to the agency. And I get my money anyway. I’m sure estate agents would do this if like in the art market, 95 per cent of the guarantees eventually made money.

It’s a mad, mad, mad, mad world!!! And a lucrative one if you’ve got a work of contemporary art to sell, at least to sell to the auction house. And the painting you buy becomes worth what you paid, as any work of art is worth what anyone is willing to pay for it. So in fact, you’re raising the value of your art by paying more for it. It’s a great wheeze, if you’re in the game.