Whether you're an amateur or expert, every fine art collector aspires to take pride in the pieces they own and their intrinsic value. However, in the subjective realm of art, discerning the actual worth of a new fine art piece can become complex. If you're seeking guidance on selecting your desired fine art paintings, this article is essential reading.
Ever contemplated purchasing a new fine art piece? You've likely wondered why certain artworks command astronomical prices, while other seemingly astounding pieces appear undervalued. Art trends and tastes are so fluid and individualistic that it can be challenging to find consensus when assessing an artwork's true value.
Yet, a universally accepted principle is that, in monetary terms, an art piece's value is whatever a buyer is willing to pay. This means that owning valuable artwork entails making informed choices. But how can one make informed decisions in such a subjective field? Is there a guiding principle or a standard to follow? And will collecting fine art prove advantageous or disadvantageous in the long run?
Fear not. Although it may seem idealistic, there are critical factors considered when determining an artwork's value. This article delves into these considerations to help you understand the factors that influence the worth of fine art paintings. You might want to jot these down!
Fair market value: the golden rule
Fair Market Value (FMV) represents the equilibrium where both the seller and buyer of an item agree on its price. In the realm of art, FMV determines the value of an artwork, considering factors like the artist's background, the artwork's distinct characteristics, and its preservation state. It provides a balanced perspective on what an artwork should reasonably cost in the art market. For budding art collectors, understanding FMV is pivotal to grasping the true worth of an artwork in the art landscape. The complexities surrounding the valuation and authenticity of art pieces have led to experiences that have profoundly shaped both art collectors and the art world. One of these guiding experiences is the emergence of the "fair market value" concept as a benchmark for evaluating fine art.
FMV is a principle applied across various industries. In the art sector, it establishes criteria to gauge an artwork's historical, cultural, and economic significance. These criteria help pinpoint a price that both a willing buyer and seller would find agreeable.
Let's examine other factors that should be considered.
Artist’s background, reputation & purpose
From academic credentials and artistic intent to accolades or scholarships, every facet of an artist's journey is pivotal in assessing their work's worth. Exhibition patterns also play a role; artists with solo exhibitions at prestigious galleries often command higher valuations than those involved in collective showcases.
An artist’s trajectory categorizes them as emerging, established, or renowned. This status directly influences their artwork’s fair market value. Established artists often sell their pieces at renowned galleries or auctions, leaving emerging artists to display their works at more affordable venues. Art from globally recognized artists commands the industry's highest prices.
Every technical detail of an art piece is considered, including its form (painting, photograph, sculpture); medium (oil, paper canvas, engraving); style (realism, abstract, minimalism, cubism); subject (landscape, portrait, still-life); and theme (religion, war, culture).
Size also affects the FMV, as does the release date of the piece. Each attribute either enhances or diminishes the artwork's valuation.
Authenticity, provenance & state of preservation
Although an art piece might be amazingly executed, its value will probably decrease if it’s a copy or representation of an existing piece. Depending on their provenance, original works of art tend to rank higher than imitations.
Provenance refers to the commercial track record of an art piece; who is selling it, who has owned it before, where it has been showcased in the past, or what the critics have said. These insights can significantly increase the artwork’s market value; a reselling art piece that belonged to a famous figure, or a popular art painting displayed at many exhibitions before going on sale, will probably be highly priced against others.
Overall conditions and state of preservation are also key to determining if an art piece is relevant and likely to be sold. Mold stains, fades, rough edges or blurred lines might play against an artwork’s value, whereas restored pieces, if executed appropriately, may have a higher market value.
Opportunity or risk?
Deciding which pieces will be the best for your fine art collection is an important task that you should carry out thoroughly if you want to make your investment worth it. You probably don’t want to waste time or money on buying art pieces that you won’t appreciate or feel proud of. On the contrary, a smart purchase can make you feel proud forever.
Fine art collectors may encounter many obstacles and complexities in their quest to embrace the vanguard of creativity, but the rewards of this journey can make everything worth it. Let’s go over some pro’s and con’s of purchasing new fine art.
Cultural enrichment & personal fulfillment: fine works of art are a window to diverse cultures, histories and perspectives, and owning pieces that resonate with your emotions or values provides a sense of achievement that acts as a constant source of inspiration.
Networking & support of artistic innovation: Purchasing works of art is a noble way to contribute to artists’ careers. Many emerging artists are known through word-of-mouth from collectors who appreciate their work. Owning a fine art collection also increases the possibilities of meaningful networking.
Market volatility & limited liquidity: while some works of art have the potential to increase their value over time and provide financial gain, success is not guaranteed. Unlike traditional investments, fine art can be illiquid and challenging to sell quickly in times of financial need. Additionally, the art market is fairly unpredictable and fluctuating, making it hard to predict its added value.
Forgery & authenticity issues: Forged artworks can be hard to detect, and as a financial commitment, purchasing art pieces needs proper research or professional advice.
Preservation and storage: Fine art requires proper maintenance and conservation to retain its value and condition over time, otherwise it could get damaged and lose value. Storage space must be appropriate and not every art collector has its own, which is why donating or lending collections to art galleries has become a common practice.
Evaluating these considerations will empower you to make confident decisions when collecting fine art. Remember that the joy of art appreciation lies in exploring and discovering pieces that resonate with you on a personal level, so you can feel proud of owning them.
Find the best insights and advice to build your new fine art collection here at The Art Dome.