Why Is Abstract Art So Expensive?

If there is one art that can be argued indefinitely, it has to be a modern abstract painting. Its admirers praise its capacity to transcend all communal and emotional borders in order to reveal the artist’s deep-buried sentiments. At the same time, its detractors see it as little more than a haphazard smattering of colors and painted lines.

Unquestionably, this is a never-ending debate, but the fact that abstract

Art is, without a doubt, one of the fascinating parts of the art world.

People frequently ask what abstract art is and why abstract paintings for sale cost millions of dollars. This blog will provide you with reasons to assist you in building a knowledge of this perplexing yet wonderful type of art.

The Birth Of Abstract Art:

Before we go into the causes, it’s important to understand how abstract art came to be. Prior to the invention of photography, painters created paintings of real-life situations and people that were visible to the naked eye. There were few depictions of the personal self, except the creations of the Gods and Goddesses, spiritual entities, and societal occurrences.

However, with the advent of photography, the art world saw a paradigm change. The natural environment that painters labored over to portray on canvas was now caught in its entirety in a handful of seconds. As photography became more prevalent in representing reality, artists ceased putting forth any effort to capture a situation that could readily be captured.

As a result, painters began delving deep into their minds in order to unearth those concepts and ideas that were a love child of the human mind and art, heralding the birth of abstract art. (Schapiro, M., 1937)

What Is It About Abstract Art that makes it so Expensive?

When we talk about artworks that sell for a lot of money, we’re talking about trophy art. Abstract art commands high prices owing to a variety of variables, including conspicuous consumption, art as an investment, and market speculation.

Various factors contribute to the exorbitant costs of abstract paintings for sale. Four of them are listed below. (Gregory, R.L., 2007)

Abstract Art isn’t a Realistic Representation of Reality.

An artist seeks to tell a tale through modern abstract painting. It is more than simply a beautiful display of colors, lines, and forms; it also tends to reveal the artist’s feelings and visions. Because of this sincerity, abstract art is authentic in every word’s meaning. A low price cannot be placed on anything that is actual and not a duplicate of the real world. The expensive price is a mark of gratitude for the authenticity that an artist tries to convey.

Advancing the Human Mind’s Capability

Abstract art is admired for effectively portraying the artist’s innermost sentiments and emotions. This painting style focuses on bringing out the spirit of the subject rather than the form. Going beyond what the human eye can see, abstract art encourages creativity and wonderfully demonstrates the human mind’s tremendous capability. And, after all, you can’t put a price on originality, can you?

Abstract Art is Unquestionably a Significant Advancement in the field of Human Expression.

To convey those characteristics that do not have a tangible shape in the materialistic world, a high level of sensitivity as well as talent is necessary. Abstract art is a type of art that has established itself as a significant advancement in the realm of self-expression. It has enabled artists to break free from preconceptions and express what they actually believe in. Anything that causes a revolution is unique and weighs more than money.

Making Abstract Art is a Creative Activity.

Dedicating your efforts to presenting a beautiful physical shape to something with no physical form necessitates a high degree of intellect. Abstract art is much more than a pleasing combination of colors and textures. Years of training, hard effort, and expertise are required to create an abstract masterwork that conveys the artist’s inner meaning elegantly. As a result, there are no price reductions for abstract artworks for sale.

As an outsider to the art world, it’s natural to believe that abstract work fetches exorbitant prices.

Auction houses such as Christie’s and Sotheby’s also fueled the trend. Although an abstract sculpture by de Kooning went for $300 million in a private sale in 2015, it is not surprising to those who work on the subject. Abstract art is not cheap.

So, why is abstract art so costly? For one basic reason, abstract art is pricey. There is a market for it! People nowadays acquire art not just because they like it but also because it might be a smart financial investment. When you combine this with the ostentatious purchasing tendency and the growing number of billionaires, it’s simple to see why certain abstract art is so costly.

Prominent Consumption in the Art Market

Conspicuous consumerism is the practice of spending money on expensive products and services in order to demonstrate economic strength. Thorstein Veblen coined this word in response to the extravagant wastefulness of a gilded society.

Veblen had a lot to say about the arts and the reasons for their patronage. For him, beauty was inexorably linked to rarity and price. He likened art to diamonds. While diamonds are comparable to normal glass in many respects, they are uncommon in the earth’s crust and difficult to extract. They become lovely when viewed in certain situations. Furthermore, while Willem de Kooning’s oil is valuable, it is also valuable that De Kooning is valuable. Frivolities and false values, according to Veblen, sprang from the human drive to exhibit riches and rank.

Art assets are interesting due to their capacity to transmit consumption across time as well as their usage as wealth indicators. Returns reflect this “conspicuous consumption” reward when art value is added to utility.

If we look at the typical art buyer’s profile, we can find a trend.

  1. a) They have at least $5 million in their bank accounts
  2. b) They already own a substantial number of homes
  3. c) They own at least one luxury automobile

So, how can they now demonstrate to the rest of the world that they have money? Purchasing art is simple.

Abstract Art is an Excellent Investment.

Purchasing art only to improve the aesthetics of a property is a thing of the past.

Art is purchased as an investment. As an investment, modern and contemporary art, particularly abstract art, are more rewarding. Abstract paintings retain their worth throughout time, but they also rise in value by 4 to 8% every year.

Art is a large investment class with a low correlation to other asset types. Such variance categories in an investment portfolio can help to mitigate possible losses while also producing high returns. According to the performance of the art market in 2018, Other traditional marketplaces struggled over the same period. To protect their portfolio in the long run, astute investors are turning to art to boost their profits.

Art investment is more important than ever before since it is a realistic option for diversification. To sustain an investment’s financial resilience amid periods of economic instability. It is critical to access asset types that move independently of one another.

According to the Wall Street Journal, art is the top investment class in 2018. The figures demonstrated that the art market outperformed other markets in 2018. Blue-chip artwork gained 10.6 percent on average, while the S&P 500 declined 5.1 percent during the same period. This performance is impressive because 2018 was a challenging year in which various markets dropped, including gold.

Speculation in the Market

Let’s start with a crash course on the principles of speculating. A speculator buys (invests) based on projections rather than present worth and demand. The goal here is to resale at a greater price in the future, thus creating a vehicle to increase wealth.

This buyer, in turn, feeds the speculation. Hoping to resell at a greater price to a subsequent speculator, who will then continue the speculation.

One disadvantage of gambling on art is that it has no monetary worth.

Artists work in their studios, transforming diverse mediums into numerous shapes. Then their galleries, dealers, or agents proclaim that it is art and worth a particular amount of money.

Conclusion

The art market has never been more popular than it is today. If Sotheby’s and Christie’s auctions were formerly solely for art specialists, current auctions are now more akin to a fashion week event. As a result, unlike clothing, the value of artworks tends to rise over time, making it a safer investment than the bulk of financial items available. Finally, as I mentioned before, abstract art sells for such high rates is just one key reason. It is in high demand.

You might also like reading:

Abstract art and different Types
Geometric Abstract Art: How To Understand, Feel And Reflect
 

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