Ohhh, art...
I can't explain it, only to say that this particular artist has been making kitschy pop sculptures for over 10 years and they come in extremely limited series...He is one of the most famous living artists. And in spite of the economy - there are actually people willing to spend this on art. In 1997 the same Yorkie sculpture failed to sell at the $600,000 estimate and now look at what its valued! Its an investment like real estate I suppose - but these Yorkies are actually quite cute.