10 000 € for a painting!!! But why is it so expensive? ???????

How is the price of a work of art set? This is certainly one of the TOP 3 questions I'm asked most often.

The budget and profitability of a work are important criteria for our clients, much to the despair of us gallery owners! We can't stress this enough: above all, buy with your heart!

The subject of an artist's ‘monetary’ value would merit a 200-page thesis in itself, but let's try to lay the foundations here:

Are we talking 'price' or 'quotation'? ????

When you're told the price of a work of art, it's usually estimated on the basis of what's known as the ‘artistic rating’.

An art rating is simply an index that measures an artist's reputation, enabling us to estimate the value of his or her works.

And it's no easy task, since there are many sources of information for making an estimate.

Step 1: Identify the period to which the work belongs        

A work of art will not be valued by the same people depending on the period to which it belongs:

- for a work of contemporary art (from 1945 to the present day), it is generally the galleries that represent the artist that set the price, or the artist himself, but not only! You'll find out more in a moment.

- for modern art (1870 to 1945) and old art (antiquity to 1870), experts or auctioneers specialising in a particular movement or artist will estimate a price range.

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Step 2: Has the work already been circulated?        

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Case 1: Yes, the work comes from the second market ??

When a work has already circulated, it is referred to as a ‘second market’: a work is put up for sale again, either through the auction mechanism or by private sale.

This includes works by deceased artists or by living contemporary artists whose works are impossible to obtain directly from an artist or his gallery (e.g. Banksy).

There are no predefined rules for setting a sale price in this case, apart from the law of supply and demand, which alone can make or break a sale price. This highly subjective criterion is, however, tempered by auctioneers who use more objective criteria to define a price estimate, such as:

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- the rarity of a work on the market

- the period of the work in the artist's life

- the format and materials used

- the work's public profile (everyone knows the Mona Lisa)

- the quality of the work (the details involved in casting a bronze)

- the subjects dealt with by the artist

- the attention to detail compared to other works

- the experience and circle of artists around the artist

- the artist's training and qualifications

- significant personal or group exhibitions in which the artist has participated.

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For example, Picasso painted over 70,000 works from the age of 8 to 91. However, the rarest and most sought-after works are those from his blue (1901-1904) and pink (1904-1906) periods, even though Picasso is known worldwide as one of the founding fathers* of ‘cubism’ from 1907 onwards.

*With Cézanne

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Case 2: No, the work is being offered for sale for the first time ???

It is essentially the galleries and art dealers, or the artist himself, who determine the price at which a work of contemporary art will be sold. Prices rise rapidly as the artist's reputation grows. The prestige of the gallery can also influence the price.

Galleries' participation in contemporary art fairs is also a key factor in determining an artist's price, for the simple reason that fairs now account for around 45% of art sales. They are therefore an essential place for an artist or gallery to build its reputation.

Alongside the major fairs, such as the Venice Biennale, Art Basel, Frieze Art Fair, Tefaf, etc. (which are inaccessible to many galleries), there are fairs where you can unearth emerging talent as well as finding artists who are already internationally recognised.

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Do you think we've covered everything? ??

Well, we haven't! Other criteria also influence market prices:

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Acquisitions by institutional collectors also play an important role in an artist's price: when a living artist is spotted by an institution (a museum or a state collection), private patrons or foundations (LVMH, Guggenheim), the price can quickly soar. But the selection process is tough, and only a handful of artists have this privilege. Make no mistake, this opportunity is often obtained thanks to the power of a network, rather than the talents of the artist.?

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It is also important to differentiate between the official price of an artist at auction and the price of an artist in the highly confidential context of galleries and fairs. Far from the more objective criteria listed above, some works are sold at exorbitant prices at international fairs even though no one would have been convinced by them if they had been presented at auction. On the other hand, some artists, who are often over-mediatised, see their works take off in auction rooms, far exceeding their official price. And if the artist is part of a celebrity collection, irrational heights are quickly reached (see the example of the sale of David Bowie's works, including the Basquiat for 8 million euros).

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If it's expensive, it must be in demand! ??

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But art remains a field where subjectivity reigns supreme. Added to this is the financial aspect, which sometimes transforms an artist's quotation into a stock market item, open to speculation.

In the final analysis, any quotation follows a variable course and a multitude of other factors can influence it: the health of the economy, the artist's career, the dynamism of his representatives and the direction of the wind (fashion, his death, the action of beneficiaries and dealers, etc). Above all, the importance of the artist in the history of art and his or her contribution to the enrichment of our cultural heritage.

Professionals in the art world use processes very similar to those used in marketing to highlight artists, their works and the investment they represent. Exhibitions and vernissages organised in galleries and museums, as well as articles by art critics who sometimes baptise new artistic movements, are all tools used to promote the ‘cultural product’.

A talented artist who has the opportunity to see his or her work ‘marketed’ in this way is very likely to gain recognition and the associated quotation.

So for an artist, you need to be in the right place at the right time, with the right personality and a body of work that appeals to the tastes of the moment. Many are called, but few are chosen: many artists do not have the opportunity to cross paths with those who arbitrate the art market or to be noticed by them.

For other artists, the mere idea that their work might be considered a product is intolerable. In such cases, the absence of a price tag is simply linked to the fact that the artist refuses to see his or her work become the object of a market.

The intrinsic quality of an artist's work is not necessarily correlated with the financial value of his or her work as expressed by its price tag. Of course, this only applies to artists who demonstrate real creative potential. Over time, changes in public taste, political upheavals or an art dealer's ‘coup de foudre’ can give new life, new prominence and a deserved price to artists who have been less in the limelight.

So it's worth spotting these lesser-known artists before others do. Either for the subtle pleasure of owning works that only you know how to appreciate, or with the certainty that these artists will be recognised over time and that their works will increase in value.

???? My name is Patrick DENNY, art gallery owner and art collector. I demystify this fascinating universe for you and help you make the right choices!

If you enjoyed this article, please like, ask questions, and tell me in the comments which topics you would like me to address! ?

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