Art Demystified: What Determines an Artwork’s Value?

artnet News | Henri Neuendorf:

What determines an artwork’s value? And why are some works so expensive? To art world outsiders, the distinctions in price can be confusing. What makes one artwork sell for $10,000 and another for $10 million—or even $100 million? Speaking in the most basic economic terms, high demand and a shortage of supply creates high prices for artworks. Art is inherently unique because there is a limited supply on the market at any given time. According to Augusto Arbizo, director of New York’s of 11R gallery, price is determined by “an artists exhibition history, sales history (if any), career level, and size of artwork.” He added that “sometimes, production costs are factored in as a cost that needs to be recouped.”… Read more

Image: An exhibition at an important museum such as New York’s MoMA can have an impact on an artwork’s value. Photo: courtesy of Spencer Platt/Getty Images