What Makes Art Valuable
What makes art valuable is an interesting question. The global market value of art is estimated at around $65.1 billion, according to Art Basel and UBS survey 2021.
The survey is 154 pages long and full of great details about the art world and can answer the question of what makes art valuable in many ways.
Here’s a link to the complete survey in PDF format – A Survey of Global Collecting in 2022.
It is also interesting to find out that online sales revenue increased from $6 billion in 2019 to $12.4 billion in 2020, doubling in value from 2019. A subject that I have been following for several years.
Absolutely amazing figures.
This article focuses on visual art and one of the most popular questions that are very much linked to the art world is “how much is that worth?”.
But what do we exactly mean when we talk about value? There are all sorts of different things that can be linked to the art value. For example, could the value of art be:
- The emotion it creates,
- The intangible value or significance,
- The reflection of who we are,
- The inspiration can give us,
- The kind of enjoyment or the sense of wellbeing, or
- The financial value.
These are not the only things that make art valuable. So how do we measure the value of art? How do they interlink with one another? Who and what ultimately decides the value of a piece of art? Could it be:
- Supply and demand,
- The art market, or
- The collectors who are interested in that artwork.
In this article, I will try to give some sort of an answer to the question of what makes art valuable. But I’m sure there are many more answers.
What makes art valuable?
When people, generally, ask about the value of art, they are really talking about its financial value. However, I believe there are three main categories of art value:
- The market value (financial value)
- The inherent value
- The social value
Each category individually and together with the other categories gives a holistic understanding of what makes art valuable.
Let’s explore each category.
The market value (financial value)
The relationship between art and money has always been well-established since the 19th century. But prior to that, it was power that was the real driving force in the art world.
The autocratic power system dominated the world as early as ancient Rome. For example, the reign of Augustus and his advisor, Maecenas, was characterised by the commissioning of work by poets and artists for the benefit of the state. This power and art relationship continued throughout history. (Augustus was the first Roman emperor, from 27 BC to AD 14.)
Art, at those times, was a way of gaining prestige and promoting political positions and it was often exchanged or gifted to gain leverage in the courts.
However, after the industrial revolution, money became the centre of the art world. Art became a financial commodity. As a prominent business form, art auctions began in the West and later spread all over the world.
It is interesting to notice where does art go? It simply follows the money.
For example, many Italian artworks were in France. When the French Revolution (1789-1794) happened, those artworks were sold in London. London at that time was one of the richest countries in the world. So many of the artworks brought from France were sold to wealthy Britons.
Later on, artworks were sold to America. Then, artworks were sold to the Middle East and China. In the last twenty or thirty years, we have seen Asia and Russia entering the arena of buying and collecting art on a large scale.
Art always follows the money. It is a great indication and reflection of where the money is.
With sky-high prices in the art markets, there are tough decisions to be made about whether or not the financial value of artworks is worth the price of the public funds. Particularly given the rise in auction prices in recent decades.
If you look at the 1990s, there was another acceleration in the prices of art. And now, just in the last thirty years or so, we broke the $100m mark for a single piece of artwork being sold at auction.
Although financial value is often seen as the be-all and the end-all, art has a whole host of other values from the educational to the inspirational.
Here are some of the main factors that make art valuable.
Authenticity value
The authenticity of a piece of art plays a major part in its value. It examines its originality to ensure nothing has been altered. Authenticity is considered the soul of the artwork.
It is the true and intended manifestation of the artist’s idea. Authenticity is the verification that the artwork is genuine in the most basic way.
Catalogue Raisonne (a descriptive catalogue of works of art with explanations and scholarly comments). It is a comprehensive listing of all the known artworks of a particular artist. A catalogue raisonne may include such information as:
- Title of the artwork
- Its date
- Dimensions
- Medium
- History of ownership (provenance)
- Condition of the artwork
Provenance value
Provenance is simply the history of ownership of a piece of art. Who was the art made for? Whose walls that art has been hanging on? How many different people owned it? The story of ownership could be as interesting if not more interesting, sometimes, than the artist.
A typical example that is commonly used in the art world to explain the effect of provenance is the Rockefeller Rothko painting. David Rockefeller bought the painting in 1960 for less than $10,000 and had been hanging prominently in the Rockefeller offices.
In 2007, the painting was sold by Sotheby’s to the royal family of Qatar for $72.84 million. At that time, it was the most expensive piece of art sold at auction.
Almost any artwork that was part of the collection of a famous person, would add a great deal of financial value.
Rarity value
Rarity is probably one of the most used criteria in the art world to determine the value of a piece of art. But just because it’s rare doesn’t necessarily mean it’s great. And if it’s great, it doesn’t have to be rare.
There are many reasons for a piece of art to be considered rare because, for example, it survived a serious catastrophic situation without being seriously damaged. However, rarity becomes an important factor when there’s strong desirability.
One of the main fundamentals of rarity is that there is no more of that art piece being produced. As such, great rare art pieces usually end up in a museum collection or in a private collection that will probably never be seen or sold.
The age of a piece of art is also another factor in its rarity. The older it is, the rarer it becomes. The condition of rare old artwork also plays an important role.
Historical importance value
Art is a fantastic record of culture and history. Many ancient cultures disappeared and we only know about them because of the art they created. Art reflects the same for recent and current cultures. Art helps us to appreciate and understand life experiences as reflected by the artist.
Art reflects a window into history. It is intrinsically linked to the period and cultural setting in which it was made.
Condition value
Condition is the state of preservation of the artwork. It is the physical life of a piece of art reflected in the present. There is no doubt that condition impacts the art value. Artworks in good condition have a higher financial value.
There is a wrong assumption that anything old should show signs of age. In fact, some of the most valuable and sought-after artworks look new.
Quality value
Mastery of the medium, clarity of execution and authority of expression are vital criteria applicable to all works of art, regardless of style or subject.
As with most other things, the higher the quality of the work, the more valuable it will be. Aside from the quality of the work itself, the quality of the materials can affect the value as well.
Quality goes beyond the technical mastery of workmanship and skill. Quality consistency in creating stimulating, intriguing, enjoyable and entertaining art. Is the quality visually appealing? Is it emotionally compelling?
It goes beyond “I could do that” or “ a 5-year-old could do that”. It is more about the artist’s creative mind frame to “think it” and to “create it”.
Subject matter value
This is the heart of the story and message of the artwork. Is the subject matter of the artwork about particular objects, whether real objects or symbolic historical or cultural value? Is the subject matter representational or non-representational?
Is the subject matter about people or certain persons? For example, portraits of a particular person and what’s the story behind that person?
Could the subject matter be about still life art? What’s the importance of that subject? Is the subject matter about places or certain past or current issues and events?
In my abstract non-representational paintings, I tell stories of events, experiences and people I met in my life.
Medium value
Medium in the art world refers to the material the artist uses to create his/her artwork. In painting, for example, is the artist using watercolour, acrylics or oils? What type of surface is he/she using? There are a variety of surfaces artists use to create pieces of artwork. A typical example is a canvas, paper or perhaps wood.
The medium value in this context refers more to mastering whatever medium the artist is using to create outstanding quality art.
Medium value in art examines the knowledge and understanding of the artist and the medium he/she uses to create a meaningful piece of artwork.
(My article, 20 Basic Art Questions and Answers, explains in more detail about acrylic and oil paints plus many other details about basic art).
The current market trend value
In the art world, current market trend plays an extremely important role in the value of art. For example, a survey by 1stDibs showed that the most popular art styles in 2022 are abstract art, followed by contemporary and modern art. Also an increase in sculpture art.
I have noticed this market trend over the past two years, most likely, due to the Covid-19 pandemic and lockdown restrictions worldwide.
(I have written an article about my 100 Days Lockdown 2020. A year later, I wrote another article about Online Virtual Art During Coronavirus.)
Perhaps, more of us have a greater appreciation for our homes and our need to surround our personal and private environment with things that we love and enjoy. Art is, probably, one of those things that can add great emotion to our living rooms and workspaces.
I found a great video about the same subject: What Makes Art Valuable? Interesting coverage of the topic but slightly from a different angle.
The inherent value
That which cannot be quantified makes up an artwork’s inherent value. Inherent value in art is a highly subjective emotional value that is linked to how a particular piece of art makes you feel and what sensations it stimulates.
Inherent value is probably the hardest criterion to quantify. All of these factors are additionally influenced by culture, education and personal experience.
There are numerous disagreements on the ultimate meaning of art and the concept of inherent value is one of them.
Art is powerful because it can evoke strong feelings, make political statements or challenge conventional notions. It is also powerful because it requires talent to create and is beautiful. Not all pieces of art are meant to evoke such deep thinking.
The social value
Art is very visual, so it can take you perhaps more easily to another time or place. It speaks of what society is, what society is going through or what society looked like.
It gives me a sense of joy, a sense of perspective and a sense of connecting with the world around us. Some so many artists allow us, through their own work, to see better the world.
I think we are at a really critical time, in terms of how art can present us with ways of seeing the world around us in ways that provoke us to action.
Art’s capacity to benefit the well-being and mental health is another key consideration.
The social significance of art is another important component. Since art conveys ideas, values, sentiments and concepts that may be understood differently by each viewer while still conveying thoughts about society and the human condition. It is undoubtedly a medium of communication.
An artist communicates a story, a sentiment and cultural value when creating art. When viewers experience it, they also understand it and project their own tales, sentiments and cultures onto it.
Additionally, the ability to bring people together for the benefit of a shared experience is where art derives its social significance.
Most expensive paintings
The subject of this article is what makes art valuable and I think it’s worth mentioning some of the most expensive paintings in the world.
Here are some of the most expensive paintings ever sold at auction:
- Edvard Munch (1863-1944), The Scream, 1859. Sold at Sotheby’s London for $119.9 million on 2 May 2012. Here is an interesting background about the making of The Scream.
- Gustav Klimt (1862-1918), Portrait of Adele Bloch-Bauer (also known as The Woman in Gold or The Lady in Gold), 1907. Sold at Christie’s London for $135 million in June 2006.
- Pierre-Auguste Renoir (1841-1919), Bal du moulin de la Galette (also known as Dance at Le moulin de la Galette), 1876. Sold at Sotheby’s New York for $78 million on 17 May 1990.
- Qi Baishi (1864-1957), Twelve Landscape Screens, 1925. Sold at Poly Beijing for $140.8 million on 17 December 2017.
- Francis Bacon (1909-1992), Three Studies of Lucian Freud, 1969. Sold for $142.4 million at Christie’s New York on 12 November 2013.
- Vincent Van Gogh (1853-1890), Portrait of Dr. Gachet, 1890. Sold at auction for $82.5m in May 1990.
- Willem de Kooning (1904-1997), Interchange, 1955. Sold for $300 million in September 2015.
- Leonardo da Vinci (1452-1519), Salvator Mundi, c. 1500. Sold at Christie’s New York for $450 million on 15 November 2017. This is an interesting short video about Salvator Mundi’s restoration.
1958 – The turning point of art auctioning
More specifically, 9:30 pm on 15 October 1958 at Sotheby’s, London.
In just 21 minutes, the Goldschmidt sale changed the world of art forever. That evening changed and transformed the traditional way of art auctioning into a glamorous high-class event. The event was “by invitation only”, ball gowns and furs for the ladies and dinner jackets for the men. The press, TV cameras and the most famous movie stars. The sale that changed the way art was to be sold in future.
A total of 7 pieces of artwork were sold in just 21 minutes for the equivalent of $91,000. Now, that is worth more than $30 million. The collection included:
- Three works by Manet,
- Two works by Cezanne,
- One by Van Gogh, and
- One by Renoir.
That auction set three world records for a painting price in a single auction. And it set up, what we now know as the ‘evening auction’ of the ‘evening sale’.
Journalists reported and described ‘whistles of surprise’, ‘crisis’ and ‘roar of laughter’. And one noted that ‘as prices soared, it was something hard to remember it had anything to do with art’.
A fantastic turning point in art sales history.
A summary of what makes art valuable
The power of art is to inspire, educate and help the mind. It’s a combination of the art market, collectors, critics and galleries that ultimately decide the value of an artwork.
But we all agree that it’s the intangible power of art that gives true value.
I think there is an instinctual reaction that several things have to work. Does it tell me something? Does it do something to me?
Anybody, you or I, can stand in front of a piece of work and have that instinctive response to it. That’s the intrinsic value of it and the financial value can’t affect that.
In a way, monetary value is meaningless. Once a work of art has entered the great museums of the world, it’s not really important anymore. The work of art is there for everyone to see and enjoy.
The art world and I mean the financial market is far too complicated to understand. People buy art for a variety of reasons. They probably like the artwork, it could be an investment or maybe something to do with tax purposes.
What makes art valuable to you? Let me know in the comments section below.
