How to Determine If the Price Is Adequate?
Entrepreneurs understand that in order to make a profit, one must buy or produce at a lower cost (not necessarily compromising on quality) and sell at a higher price. This refers to purchasing at a low price point. But how can you know if the price is adequate? There are two approaches to valuing art: the first is market valuation. This is used to assess works by well-known artists, for which there is existing auction and gallery sales data. For instance, websites like Artprice.com can be utilized to see the last time and price at which an artist’s paintings were sold.
But what if the artist is not well-known, making it difficult to find sales information about them?
For this scenario, there is a second approach – parametric valuation, which forms the basis of ArtMost’s online calculator. The calculator indicates which paintings are good for investment by comparing the offered price of a painting with its estimated value. Thus, the concept of a low buying base applies to first-tier artists: the purchase price is approximately [market valuation] / 1.5; investments in second and third-tier artists’ paintings are priced around [parametric valuation] / 3.
Issues. Risk of Forgery
The main problems in the art investment market include distrust in the market, lack of transparency, a high number of forgeries, and a scarcity of experts. Many art dealers withhold information to maximize their profits. Furthermore, even having an expert opinion does not guarantee the authenticity of a piece. Investing in art can be risky due to forgeries and liquidity issues. To mitigate risks, it is crucial to study expert opinions, provenance, and the market.
If you lack experience, seek advice from experts.
We specialize in art investments. For over 7 years, we have been diligently involved in this field, offering various investment strategies for both beginners and experienced collectors. We assist in starting up a collection, defining a collection’s strategy and concept, and providing safe and profitable investment options. Our algorithm enables you to easily and securely acquire a masterpiece that will enhance your home or collection. We are eager to help you on your path to success in art investment.
CATALOGUE:
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Larionov Vasiliy
At sunset
64 x 90 cm
3,215 € -
Vlasov Vyacheslav
Brighella of our time
100 x 90 cm
2,050 € -
Filippov Yuriy
Warm wind
35 x 49 cm
5,000 € -
Filippov Yuriy
Romance and the prose of life
62 x 88 cm
5,000 € -
Gilmanov Ildar
Iremel VII
50 x 60 cm
500 € -
Vyrzhikovsky Edward
Diploma drawing
74 x 60 cm
1,500 € -
Maltsev Aleksandr
Face
120 x 80 cm
4,900 € -
Cholokyan Misak
Storm
90 x 80 cm
2,550 €