Why is the Cost of Artworks so Expensive?

Why is the Cost of Artworks so Expensive?

Are you wondering why the price of paintings are selling at ridiculously expensive prices at art auction? Does it make you think what made these items extremely valuable? There are many economists who would tell you that the cost of art such as the price of commodities is primarily based on the law of demand and supply. Of course, it is a far cry from everyday typical items such as bomba pneumática that are used for gas tanks at home. With regards to demands, only few really wants art but there are countless of people out there who are after magnificent artwork.

Supply and Demand

With great demand for artwork, it’s basically the supply side that frequently leads to expensive art prices. Scarcity plays a significant role in the process. A lot of the famous artists in our history already passed. There are no new paintings of Monet and Picasso that are in circulation except for the ones that they have worked on while they are alive. This makes the surviving pieces of their work to be extremely valuable.

How about Living Artists?

There are numerous artworks made by living artists that are also selling for high prices. But what drives the value of these artworks? Still, supply and demand contribute to the process but even though the artist is still alive and well, that artist can produce only enough quality art throughout their lifetime. Oftentimes, it takes time to create a single piece of art.

This then results to another element that is affecting art prices: every artwork is unique. Even if the artist is still alive, that artist is very unlikely to make several copies of similar piece of the artwork. To such extent that a certain piece is in great demand, there’s just one available and this is enough to drive up its price.

Roles of Art Professionals

Art professionals play a part as well in pricing. Dealers, gallery owners, artists as well as museum creators are helping to create the demand for artworks by means of promoting the artist as well as their works. These people are helping to identify which artwork is good and which artist may be the next icon.