Art Valuation

Valuing art to invest in is a complex process that takes into account multiple factors.

Art Sourcing

Some are intrinsic to the artwork, like its physical characteristics and ownership history, whilst others are external, such as wider market movements. At Mintus, we have a two-stage valuation process: internal valuations are conducted by in-house expertise on our art investment offerings, which are then verified by industry-leading third parties.

What are the key factors that affect an artwork’s value?

Authenticity:  First and foremost, is the artwork authentic? Find out how Mintus authenticates artworks here.

Rarity:  Like all markets, the value of art is tied to the first law of economics – supply and demand. A rare work that’s in demand is highly valuable.‍ 

Condition:  Works that are in the closest possible condition to its original state are the most highly prized. A work that has been damaged or had conservation work will suffer in value. 

Provenance:  This is the sales history. If the work was owned by a particularly important collector, then it will be far more desirable. For instance, this could include a ‘celebrity’ figure, such as David Bowie, or individuals with celebrated collections, such as Peggy and David Rockefeller. 

Historical Importance:  A work from a particularly significant period of the artist’s life, or connected to a wider historical context, is more valuable. 

Medium:  The artwork’s materials make a difference. As a general rule in paintings, oils will be more valuable than watercolours, which are in turn more valuable than pencil or charcoal drawings, which are more valuable than prints. 

Size: Traditionally, extremes can devalue an artwork. Too big or too small can create problems on a practical level. 

Subject Matter:  An iconic or immediately recognisable subject associated with the artist will be more desirable and consequently valuable, such as Warhol’s Marilyn. Conversely, a particularly challenging subject, such as one containing extreme violence for instance, is generally far less likely to appeal to collectors. 

Quality:  This is the most subjective of all the factors – namely does the work have that certain je ne sais quoi that gives it an irresistibility.

How do we value our art investments?

At Mintus, we take all of the above factors into consideration, alongside the comparable performance at auction to determine the value of our offerings. Recent sales of artworks, either from the same series, or of a similar size, date of creation, medium (material), appearance and subject are used to determine an appropriate valuation internally, with the guidance of our art advisors.

How does valuation fit into our art investment process?

When presented with a potential art investment opportunity, we conduct an in-house valuation of the artwork that is overseen by our Art Investment Committee. A potential purchase price is then agreed internally, which we feel represents good value.

In order to verify the purchase price, we commission up to three independent valuations from third-party industry experts, each done in isolation. The aim is to make sure that the independent valuation, or average of the valuations, is between 15-20% above the purchase price.

How often do we value our art investments once we have invested?

We value our offerings at least every twelve months.

Which third parties does Mintus work with?

There are three industry-established firms that we use to get our periodic artwork appraisals:

Gurr Johns

Established in 1914, Gurr Johns has been conducting independent specialist valuations and advising international clients on their art collections for over a century, building a reputation on the values of connoisseurship, discretion, and commercial transparency.

With offices in London, New York, Chicago, Los Angeles, Delhi, and Hong Kong, Gurr Johns has a global team of over 160 specialists with expertise across all asset classes. Gurr Johns specialists value $10 billion in assets annually.

Appraisal Bureau

Appraisal Bureau is a third-party neutral valuation and data firm. It offers valuations on Digital Assets and Fine Art exclusively, using its proprietary technology-led platform alongside market insights to deliver a its appraisals. Annually they value over $1b in Fine Art, whilst their proprietary NFT Valuation Methodology is trusted by major international insurance markets and financial services firms.

All Appraisal Bureau appraisers hold the highest credentials in the industry as members of the Appraisers Association of America. All their appraisals are compliant with the Uniform Standards of Professional Appraisal Practice (USPAP) and the Internal Revenue Service (IRS).

Kendris

Kendris is a Switzerland-based company that provides family office, trust and fiduciary services, Swiss and international tax and legal advice, accounting, outsourcing, aviation advisory and art management.

Working with institutional, corporate, and private clients, Kendris provides comprehensive art management services for individuals and companies that have art as part of their investment portfolio.

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