Most people agree that art is important, although the definition will be always be debated. Art obviously serves many functions and seems embedded in human nature. Cavemen painted it on their walls. School children draw wonderfully primitive yet imaginative pictures. Commercial artists produce illustrations that get us to buy things.  At the top of this food chain are trained artists who produce wildly creative works of art that sell for millions of dollars.

A Christie's art auction in May, 2007 set a new record in prices. A total of 74 paintings sold for $384.6 million, averaging more than $5 million each, including Andy Warhol's Green Car Crash for $71.7 million.  The actual record for a modern art piece was set in the same month at a different auction in which a Rothko, White Center (Yellow, Pink and Lavender on Rose) 1950, sold for $72.8 million.

One might ask, what would motivate buyers to pay these prices? It’s hard to say unless we asked them, and I don't think they are giving interviews. Many high-end art auctions are private or semi-private affairs with only a few of the most notable sales being reported. Art auction web sites require paid membership to access prices. It’s safe to say, however, that many of the art buyers are simply purchasing art as they would make any other type of investment, such as IBM or Exxon Mobile common stock.

I ask you to compare for yourself which is the better value: the Green Car Crash for $71 million or an enhanced rendering of your favorite personal photograph for free?