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May 10, 2024updated 15 May 2024 11:02am

Putting a price on art: nine factors that drive value

Want to know if you're paying over-the-odds? A leading art advisers shares the deciding factors

By Thomas Reinshagen

A leading art adviser is indispensable to high-net-worth individuals seeking to grow – or sell off – their collections. 

As well as guiding clients through – and facilitating access to –  the shows, sales, fairs and auctions that comprise the international art market, an art adviser can oversee more prosaic matters, such as transportation and insurance. 

[See also: Outstanding art advisers for high-net-worth collectors]

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A key element in which they are also involved is valuation. Advisers are trusted with putting a price on art. In my opinion, these are the nine considerations to keep in mind: 

Reputation and recognition

An artist’s reputation within the art community and their level of recognition can significantly influence its market value. Awards, honours, exhibitions in prestigious galleries or museums, and positive reviews from critics can all contribute to building a strong reputation. The age of an artist also plays a role. For example, Gerhard Richter is not producing any more artworks at his age (of 92), thus supply will not increase. On the other hand, an artist like Damien Hirst continues to produce at a fast pace, irritating the development of his market-prices.

[See also: Gallerist Pearl Lam: a champion of Asian contemporary art]

Market demand

Helena Newman Auctioneering Gustav Klimt's recordbreaking Dame mit Facher / Lady with a Fan - Sotheby's
Helena Newman auctioneering Gustav Klimt’s record-breaking Dame mit Facher (Lady with a Fan) / Image: Sotheby’s

Understanding the current demand for a particular style, genre, or theme of art is crucial. Trends in the art market can shift over time, impacting the value of certain types of artwork. The top 50 artists in contemporary art make approximately 80 per cent of the turnover, ensuring their stable prices over decades.

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Artistic vision and concept

The clarity and strength of an artist’s vision and concept can distinguish them in the marketplace. Artists with a unique perspective or a compelling narrative behind their work often garner more attention and higher prices. The silkscreens of Marilyn Monroe by Warhol are a perfect example.

[See also: The generational divide shaping the global art market]

Collector base

The size and enthusiasm of an artist’s collector base can drive demand and prices for its work. Established collectors who actively seek out and purchase an artist’s pieces can create a strong market.

Artistic medium and materials

The medium and materials used by an artist can affect their market value. Certain mediums may be more desirable or collectible than others, depending on prevailing tastes and trends. Oil/Canvas in the category ‘painting’ fetches the highest prices because it makes the artwork more powerful. This technique is also very demanding for an artist and makes it unique (compared to editions, for example).

[See also: The dark art of the deal: the oligarch who lost a billion in the art market]

Quality of work

LONDON, ENGLAND - OCTOBER 06: Pablo Picasso’s Femme à la montre, from 1932, the artist’s ‘golden year’ goes on view at Sotheby's on October 06, 2023 in London, England. The painting is on view to the public in London until 11 October at Sotheby’s. Estimated to realise in excess of $120m when it is offered at auction in New York this November, the work is one of the most valuable paintings ever to come to the market. (Photo by Tristan Fewings/Getty Images for Sotheby's)
Pictured: A record-breaking Picasso sold by Sotheby’s in 2023/ Image: Tristan Fewings/Getty Images for Sotheby’s

Artistic skill, creativity, originality, and innovation are important factors to bear in mind. High-quality work tends to command higher prices and attract more interest from collectors and galleries.

Keeping abreast of broader trends in the art market, including sales data, auction results, and emerging artists, can inform decisions about the value of an artist’s work. Factors such as market cycles, economic conditions, and cultural shifts can all influence pricing and demand.

Exhibition history

The artist’s history of exhibitions, both solo and group shows, can provide insights into their trajectory and market presence. Participation in reputable exhibitions can enhance an artist’s credibility and visibility.

Long-term potential

Assessing an artist’s long-term potential involves considering factors such as the consistency of their output, their ability to evolve creatively, and their prospects for continued relevance in the art world.

Thomas Reinshagen, previously senior director at Sotheby’s in Zurich, is an independent art and luxury consultant.

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