The world of artworks.

How are art prices determined??

Frankly, I have no clue. My guess is as good as yours. But there must be a lot of probability involved in the process of discovering an artist and determining a price deemed right for his works. Since in the art world all works are different, what formula works and becomes a hit is very difficult to predict.

Some high profile collector gets his fancy over a piece of art, the artist gets discovered, the market allows him his price and a cycle starts. The art market does not have an index like the stock market where prices could be discovered. So the price is so much more on sentiment than rational thought.

Thats why art prices can remain irrational far longer than any other asset prices. The quality aspects are also well understood by only a very few discerning eyes. Hence, nobody has the gumption to challenge the verdict put on a Leonardo or a Picasso work. Even newer artists are determined by the same benchmarks.

Only when an individual challenges these predetermined benchmarks with some unique works and follows it up with regularity; does his work get immediate mention, media attention, fame. Money follows. Look for such exponents. you would be very rich if you could do it early on in the career of and artist. Otherwise, if you are one of the moneybags, make an artist well known by throwing money for his works and 'discovering' him. Either ways-your heart and your art should be on the same wavelength.