A quarter-century after grunge's enigmatic rhapsodist took his own life, Kurt Cobain's iconic cigarette-singed cardigan worn during Nirvana's 1993 Unplugged performance has sold for nearly $500,000.

Key points: Nirvana's 1993 show is considered one of the most iconic Unplugged performances, and was recorded less than six months before Cobain's death

Nirvana's 1993 show is considered one of the most iconic Unplugged performances, and was recorded less than six months before Cobain's death Cobain's Fender Mustang guitar was also sold for $500,000

Cobain's Fender Mustang guitar was also sold for $500,000 Julien's Auctions CEO says rock and roll memorabilia is being collected like fine art by Millennials

The tattered, drab-olive-green button-up sweater with dark stains and a burn hole sold for $US334,000 ($490,000) through Julien's Auctions, setting a new record for the most expensive jumper ever sold at auction.

The thrifted cardigan is the toast of this fall's "Icons & Idols: Rock 'N' Roll" auction organised by the house, which also sold off the late Nirvana front man's left-handed teal Fender Mustang guitar played during the In Utero tour for $500,000.

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"This cardigan, it's the holy grail of any article of clothing that he ever wore," said Darren Julien, CEO and president of the house.

"Kurt created the grunge look; he didn't wear show clothes," Mr Julien said at a New York exhibition preview of the auction.

The music cable channel MTV began its Unplugged series in 1989, recording live performances of acts that generally played their normally electrified music on sparse acoustics.

Cobain's haunting Unplugged performance with Nirvana — recorded less than six months before he killed himself at age 27 — is considered one of the most iconic shows of the series, and was released posthumously.

Already deep into an emotional, drug-addled downward spiral, the depressive but singular talent with ocean-blue eyes reportedly lamented to Unplugged programmer Amy Finnerty after the set that the audience seemed not to like the show.

"Kurt," she told him, "they think you are Jesus Christ."

Rock 'the new fine art'

It was the second time the Manhattan-brand sweater has gone up for auction, having sold in November 2015 for $200,000 via Julien's.

The house originally acquired the oversized cardigan from the nanny of Cobain's daughter with Courtney Love, Frances Bean, now 27 years old.

The house's CEO said interest in the rock and roll market has seen a particular uptick in recent years, as the genre ages and its memorabilia becomes artefact.

"I've always said that the rock and roll market is the new fine art market," Mr Julien said.

"Millennials are starting to collect, and they're not collecting Monets and Picassos."

"Wall Street guys" are among the major buyers, Mr Julien said, adding that "hedge funds even are starting to invest in rock and roll artefacts as a way to diversify their client's portfolios."

Other notable sales at the auction included Elvis Presley's 1974 gold Mercedes-Benz 450 ($183,00), a Jimi Hendrix-autographed copy of Are You Experienced? ($66,000), a Heroes-era David Bowie self-portrait ($75,000) and Bernie Taupin's handwritten lyrics for Elton John's Goodbye Yellow Brick Road in a custom Wizard of Oz frame ($110,000, well over its $9,000 pre-auction estimate).

AFP