Collecting Basics: Value Why is art expensive? Actually most contemporary art is a bargain. It's handmade by professionals who generally have advanced degrees and years of expertise. True artists are survivors who are committed to their muse — only one in twenty continues to produce art five years after graduate school. Only the best of the best are chosen by NextMonet. Lasting value Ross Bleckner The old saying "Beauty is in the eye of the beholder" applies to value in art as well. The true and lasting value of art is in the eye and experience of the viewer. Although there is an enormous established market for art — which sells works by famous masters like Vincent Van Gogh for millions of dollars — the true and lasting value of art is based on what an artist puts into it and what the viewer takes away from it. We sometimes hang onto faded posters or tattered postcards for years, just because they depict a work of art we value. Art that speaks to you, that touches you, that makes you comfortable or unsettles you — all this art has great value for you, value that is beyond price. Treasure hunting NextMonet offers you the chance to discover and acquire art that has lasting personal value. By visiting our Art Smart section, viewing our online Exhibitions, or plunging into our vast inventory and searching for yourself, you will find works of art that have meaning (and therefore value) for you. On the market Artists are well aware that only a handful of artists throughout history have reaped significant financial rewards for their efforts in their lifetimes; this is why the decision to be an artist requires singular commitment and vision. Today there are many artists that experts — curators, dealers, and critics — consider important, and who are widely admired. But just whose works will have lasting market value can only be determined 50 or 100 years from now — by our grandchildren. If they continue to value a particular artist's work, then the market value of that work may increase substantially. Art market economics Masami Teraoka Prices in the art market are determined by the intersection of two factors: the artist's importance, and the law of supply and demand. Staying power Importance is a complicated, inconsistent concept. An artist's importance at any one moment in history is based on the tastes and trends of the era — Rembrandt died a pauper in part because his work was out of fashion at the end of his life. The importance of an artist or a work of art is perhaps best judged by the test of time. After three hundred years, the power and beauty of Rembrandt's work is still striking. The next Rembrandt — or Monet Since Rembrandt's work has now been valued with some consistency over time, we can now safely say that a Rembrandt would be a worthwhile investment. But how do we know if a contemporary artist will turn out to be the next Rembrandt or Monet? We must consider an artist's entire body of work to date, assessing both past work and future promise. For more on this subject, go to the Artist's Careers section of Art Smart. Supply and demand in the art world Lynn Hershman The price of a work of art, if it is considered important, will increase over time because of the law of supply and demand. Historical importance, critical acclaim, and contemporary fashion all drive demand. Over time, the supply of an artist's work inevitably decreases — pieces are ignored, lost, and destroyed. If the artist has been considered important over a period of time, then his or her works will steadily be purchased by museums, and the artist is thus taken out of the art market. One way or another, as the years pass, we will be able to buy fewer and fewer works by any one artist. Art at a premium When artists like Rembrandt, Claude Monet, and Mary Cassatt maintain their reputation within the small community of curators, dealers and historians who determine artistic importance, the price of their work will steadily increase as the supply decreases. If the attention of the experts shifts — if an artist is "rediscovered" after years of neglect — then the demand for the work increases suddenly. Combined with a steady decrease in supply, this jump in demand creates dramatic increases in price. A worthwhile investment Paul Harris If you are knowledgeable and wealthy enough to buy work by old masters like Rembrandt or Monet that has stood the test of centuries, your investment will certainly increase in value over time. But keep in mind that only a small fraction of all art actually increases in value. It is the rare, knowledgeable, and very lucky collector who invests in relatively unknown artists and winds up making a killing in the art market. At NextMonet, we do not recommend that you think of your art collection in contemporary art in monetary terms alone. Your art collection should be an investment in your personal enjoyment and growth, and a rich legacy and source of inspiration for future generations. All the artworks on this page have been done by artists who have sustained a career over many years. Click on any thumbnail image to learn more about the artwork and artist. Next: Artist's Careers — How do artists set their prices?