Finer aspects of art authentication and valuation

Numerous criteria, such as the historical significance of the work, the rarity and its physical condition have to be assessed before proper value can be assigned to a work of art. The valuation process should involve:

1.A detailed study of pricing history for the artist
2.Price comparison with other works of the artist from similar periods
3.Price comparison with works by other contemporary artists
4.Research on historical significance of the work
5.Previous auction price references
6.Current value estimation
7.Liquidity rating & analysis (if required)
8.Rarity & availability analysis
9.Investment rationale (if required)

For valuation purpose, complete description of the artist and the work, as well as provenance, exhibition, publication history etc are also necessary. To understand valuation mechanics, it makes sense to seek advice of experienced art experts.

Here are some more pointers to help in your quest to collect quality art:

Previous buyers’ history: The key question to ask - who had first bought the painting? Check where it was earlier shown or displayed. Seek catalogues and other possible sources of information to prove the previous ownership claims, history, records as well as condition of an artwork.

Proper paperwork and authentication: If you buy a work sans the requisite paperwork, it won’t be easy to sell it at close to its right market value. For artists, who sign and date their respective works, an easy chronology is available to trace.

You can get to see similar works for purpose of comparison (pictures of them, at least). This may not be the case with artists from previous generations, having left behind unsigned works, which are now up for grabs. In such a scenario, proper authentication needs to be ensured.

It is always advisable to approach specialists while investing in any asset class including art since it demands expertise and insight to build, manage and grow your portfolio.