SIX years ago a Melbourne woman made a purchase that was considered somewhat ludicrous by family and friends  she paid £500 for a stencil by the enigmatic British street artist Banksy. But she is having the last laugh.

Three weeks ago, the Banksy canvas sold at auction in London for a hammer price of £90,000 ($A219,544).

Laugh Now fetched nearly $220,000 when sold by its Melbourne owner.

The image is a modern classic  the now famous Banksy stencil of a chimp somewhat prophetically bearing a placard that reads "Laugh now, but one day we'll be in charge". It sold three weeks ago at Bonhams' Urban Art auction, exceeding its estimated price of £60,000 to £80,000 as two phone bidders battled it out.

The previous four Banskys to go under the hammer failed to sell.