Contemporary art is an unignorable area of fine art, accounting for around 15% of the global art market. Plus, it’s worth nearly $2.7 billion in market turnover after record-breaking sales between June 2020 and June 2021.
Investors and collectors are getting attracted to contemporary art. Ambitiously, many try to predict what the future of this industry will be like.
The latest trends can give you a better idea of what you can expect in the coming years. Check them out to anticipate how these will impact contemporary art buying and selling.
Contemporary Art Investment – The Latest Trends
After years of representing tradition and gaining value based on its historical significance, the art world took a radical turn, mostly fueled by the pandemic.
Technology impacted the industry, increasing the popularity of digital art spaces and activities. Social media became the ideal place to discover artists.
Big names such as Jean-Michel Basquiat and Jeff Koons have long dominated the contemporary art industry, drawing crowds to museums and earning millions of dollars from their prestigious artworks.
However, investment trends are changing as technology revolutionizes the industry. Many investors and collectors are now interested in modern, innovative, and unexpected art pieces.
Additionally, many anticipate a green future for contemporary art as sustainability becomes an indispensable part of the world.
Art has always been a reflection of society’s issues and concerns. Thus, it’s not rare to see buyers leaning towards one of the most prevalent – the ecological balance.
As a result, sustainability has impacted both themes and the artworks themselves, including the materials, methods, and techniques artists use to create modern art.
However, despite innovation and modern buying trends leading the market, the contemporary art world remains diverse. Classics, such as paintings, don’t go out of style.
What Makes Contemporary Art Valuable?
What happens after an auctioneer hits the hammer? Many contemporary artworks are selling for seven or even nine figures! What determines the value of these art pieces?
Undoubtedly, an artwork’s cultural value impacts its selling price. However, three other elements play a key role – the artist’s art-historical importance, the potential return on investment, and the well-known law of supply and demand.
Why Is Contemporary Art So Expensive?
After seeing an artwork that looks like just paint on a canvas selling for millions, some people truly believe there’s something else behind it. Is it fraud or, perhaps, a prank? However, these conclusions result from a poor understanding of the art market.
The economic value of an art piece isn’t just the sum of all the materials the artist used. Artworks have imbued value, which is directly related to their cultural significance and the creator’s relevance.
Did you keep the last letter from a loved one who passed away? Do you think it’s more than paper and ink? It could be a great metaphor to explain the value of an artwork.
Essentially, contemporary visual artworks are valued based on the following:
- Material value
- Decorative value
- Artistic/Art-historical value
However, artists who make a name for themselves in this prestigious world can add more zeros to their artworks’ selling price.
Also, it’s important to know the primary and secondary markets in order to understand what determines artworks’ economic value.
In the primary market, artists or their galleries sell artwork for the very first time directly to a collector or investor. The buyer becomes the first owner.
Multi-million dollar sales are uncommon in the primary market. Instead, artworks sell for between $1,000 and $500,000.
In the secondary market, things are considerably different. Almost all record-breaking sales take place here. However, the artist or gallery doesn’t earn money at this stage, as it involves sales after the very first sale.
Art dealers, specialized galleries, collectors, and auction houses are a great part of the secondary market.
Contemporary art at auction is a different game. Who determines an artwork’s value? Each art piece auctioned is worth exactly what the highest bidder is willing to pay. However, that doesn’t make the purchase any easier.
In the secondary market, the artist’s relevance also comes into play. Since galleries prefer to sell to private and public collections, even with long waiting lists, your chance to buy artwork from your favorite artist comes after the first sale.
However, you won’t be the only person trying to outbid any other potential buyer, which will drive the artwork’s price up.
How Much Is Contemporary Art Worth?
Each contemporary art piece has its own economic value. Some sell for $1,000, while others are worth tens of millions.
However, as mentioned, Artprice’s latest report showed that contemporary art is worth $2.7 billion after a significant rebound in sales between 2020 and 2021.
Final Thoughts – Buying Contemporary Art at Eden Gallery
Several factors determine contemporary art’s value. Artworks’ uniqueness, historical and cultural value, originality, decorative value, and the artist’s recognition impact their prices.
As such, contemporary art can be a worthwhile investment, whether you lean toward its economic value, decorative qualities, or relevance.
Do you plan to invest in contemporary art pieces? Look no further than Eden Gallery! Their exclusive art galleries offer a wide selection of modern, colorful artworks, perfect for those seeking to invest in captivating pieces. Discover the innovative and fascinating perspectives on life through their collection, and make your purchase of contemporary art at Eden Gallery.
