How are auctions important for the art market today Essay

How are auctions primary(prenominal) for the contrivance market today - Essay ExampleFor example, in otherwise industries like the real estate, erstwhile the construction of the house is complete, the builders and architects result mostly not hasten any meaningful relations with the token make or house. However this is different in the art world since the artist forget have a central correlation with the art they have created in this context, the role the art market plays in the art world and the artists own career is somewhat intricate and can start from one artist to another and from one region to another. It is with this in mind that I have break dance my essay into different categories. Firstly, I will discuss the art market as a intact before looking at the horizon of art valuation. The second area will be covert the determination of the price for a painting. Thereafter I will finish my essay with a closure on how all these aspects are important for the art market today as much as the contribution to how a painting or an art piece will be auctioned. Art merchandise Recognition of art as a feasible and valuable alternative asset class has make a situation where the art market is increasingly being promoted purely as a doer for monetary gains. New investments dealing in arts have been created in the last few age and this shows how the society has grown the confidence it has on the art market as a method of building wealth and as a way of diversifying the investment range. This art market is continuously growing raze though it is a new and small market compared to other investment markets. According to Singer and lynch (94), the art market is divided into four categories that are diverse. The fourth category is mostly for the illicit aspect of the art market. The offset one is referred to as primary which deals with art that is in the open market for the first while once the art has been sold it will be in the secondary possession thereaf ter if it is auctioned the tertiary stage will be under this category. This means that before an art is auctioned it has to undergo believably the three faces (apart from the illicit market) and through the facets the value of the art piece might increase or shine depending on the quality and the significance. Art valuation Art valuation is the basis for dictating the significance of the art in question, whether the art is very good or very bad. This is an art-specific division of financial valuation. The process will collect giving an approximate value (valuation) or estimating the potential market value of works of art and consequently this makes it more of a financial concern rather than an aesthetic concern (Fenner 28). The subjective views and opinions of the art similarly play a major role in the valuation process. The valuation itself will involve comparing the data and analyzing the trends of the art from various key players like collectors, auction houses, museums, cu rators and even art dealers among many other important art players. These key players will mostly arrive at a value that they will deem. The art market is dictated by the valuation which in turn determines whether an art is good or not. A good art will have a high market demand as many people will be after this piece of art and at the same time liquidity of the art means that the art is very easily sold without any impediments hence the art is deemed as a good art. Other factors that will make an art be good will include the valuation trend whereby if an art