Nicole Lapin

Here's where it gets really interesting.

Many of the most expensive works of art ever sold never leave these warehouses.

They're created, they're insured, they're stored, and then they're sold all over again, all without ever being hung up or even unwrapped.

According to the Geneva Freeport, over 1.2 million artworks are housed there, including works by Picasso, Monet, and Van Gogh.

Why?

Because inside a Freeport, the painting isn't just a painting.

It's a liquid asset and the government doesn't get a cut.

Step three, reappraise the art.

Let's say our original buyer stored their $5 million painting in Geneva.

A few years later, they get it appraised again and this time it is worth $20 million.

who decides that well a private appraiser which can be hired by the collector or their family office in some cases appreciation of a piece of art is just about the legacy of the artist or the cultural significance of the work but in some shadier examples it's just the richest people in the world pulling strings and when it comes to art if you're a billionaire pulling strings is easy

There is no SEC, there is no NASDAQ for art, there's no central regulatory body that says what something is or isn't really worth.

Valuation in the art world is largely subjective, based on comparables, artist reputation, and you guessed it, how much somebody paid for similar work recently.

So if a few insiders coordinate purchases at inflated prices, they can essentially manufacture value.

And it is perfectly legal and incredibly lucrative.

Take the works of Rudolf Stengel.

His pieces were relatively unknown in the early 2000s.

But by 2017, one of his paintings sold for $7.3 million at Christie's.

Why?

Strategic placements in museums, carefully managed auctions, and collectors who had financial reasons to see his work appreciate.