March 2009: Robyn Farrell Roulo, a staff writer and reviewer for ArtSlant Chicago, was asked to provide her insight on art valuation. The following excerpt gives a great overview of art valuation for the young collector.

The art market consists of the primary (galleries, dealers, retail venues) and secondary (mainly auction houses) markets as a mode to trade artwork. The professionals that evaluate art consist of gallerists, dealers, art appraisers, consultants, curators and auction house specialists. Although all of these individuals have the ability to determine the value of a work, each may base their judgment on a different set of criteria specific to their immediate profession.

For example, an auction house specialist takes into account the past auction records for a particular artist of a given work along with the size, subject matter, medium, size, condition and provenance. If one of these criteria does not fit the ideal it could affect the value at auction. In order to research the past performance of a particular artist, a specialist will consult an online database that lists every auction record from every house internationally over a certain period of time. Websites like artnet.com, askart.com, artprice.com and artfact.com provide this service via subscription (multiple levels are available) along with artist bios, gallery and dealer interest along with interest tracking for collectors and potential buyers.

A dealer or gallery has a different approach. Basically, the size, subject matter, medium, condition and provenance of a given piece still factor into the potential value, however the star power or potential of the artist seems to carry a great deal of importance rather than past auction records. A gallery that focuses primarily on the secondary market may hold work by an established artist who has proven themselves to a higher value. This may allow them to attract a higher caliber of collector or artist. Whereas a gallery dealing in the primary market will look for the unknown or emerging artist that holds a potential cache or raw talent that will be attractive to their client base.

A curator may take a more academic view in regards to the value of a work or artist in regards to their context to art history or museum collection. While an appraiser provides an unbiased service like insurance and estate tax appraisals working independently for private collectors, corporations or institutions. Finally an art consultant can provide a similar service, working closely with all moving parts of the industry. Although their objective is to serve their particular client, a consultant has contacts at galleries, museums and auction houses.

I often tell clients that they should only buy art that they like. The reason for this is because as a collector already passionate about art will find an attachment to a work or artist that best illustrates their expression, I feel that buying only for investment dilutes this experience and may also end up negatively because it is so hard to predict a work's future value.

I also advise collector's (novice and seasoned) to buy at auction. Of course I have a bias to this market, but it has been tested time and again. If one buys something at auction they not only purchase a work at a lower price than retail, but the opportunity to have a sanctioned venue for resale is a safer bet than trying to contact the dealer many years down the road.

With emerging artists, factors such as innovation, representation and controversy are tried and true and always elicit a dialogue. Whether it be good or bad, it is a characteristic that has been undeniable throughout art history and proves relevant today.

- Robyn Farrell Roulo