Art Market Analysis & Art Market Index
Art Market Valuation & Art Appraisal
AFP provides art valuations of paintings, artists and segments, based on databases of private and public art market transactions. Art indices are calculated using hedonic regressions (see also Publications & News). The hedonic function analyses the relationship between certain aspects, attributes, characteristics, of a product or service and its price, by applying regression techniques. As a result, it is possible to measure the changes in quality and price separately over time. Since each work of art is unique, this is a decisive advantage over average calculations. The hedonic regression method is also used for other goods which are heterogeneous like housing, wines, used cars and the like.
In addition, our art market indices are adjusted for inflation and currency fluctuations. The latter may have a big impact on art price developments, e.g. in the case of transactions in the USA which are then converted into Euros or Swiss Francs.
Art Prices & Painting Pricing
The Painting Calculator allows you to evaluate individual paintings, i.e. to do online art valuations. The relevant artists can be found in the artist database; the number of artists included will be increased in updates. Based on the data entered in the input screen which contains approximately 10 criteria, you receive an estimated art price range, within a margin of +/- 10%, for a particular painting at present value and the calculated return rate used. If you are unable to find the desired artist in the artist list, we offer individual price estimates within 48 hours. The fees for more extensive estimates, e.g. entire collections or estimates for insurance purposes are priced accordingly (see Subscription).
Artist Index & Artist Performance
Upon selecting an artist you are given a performance index over a certain time period; the art appraisal. Based on this index, the corresponding annual rate of return and risk are determined for an art investment in that particular artist. In addition, we provide the average overall return rate for the entire period. If the desired artist is not listed, we can calculate individual artist indices. However, reliable individual performance measurement is only possible if sufficient transaction data exists in our database for the artist in question or the desired category. Our art market database is continuously updated and expanded.
Art Market Index & Category Performance
On selecting an art market category - a specific art index and an art price segment or an art school - you will get an art category performance index over a certain time period. As a comparison you can also draw on benchmark indices of common asset classes like financial securities and real estate. Based on these art indices, the corresponding annual rate of return, the risk and correlations are determined for an investment in the appropriate segment. In addition, we provide the average overall return rate for the entire period. If the desired segment is not listed, we offer to generate individually calculated art market indices.
Art Market, Artist Indexes & Benchmarks
The art market and artist indexes from our art market database are available for individual online benchmarking. We provide various categories of benchmarks, including: financial indices (equity and bonds), commodities, real estate, and macroeconomic indicators (inflation and growth rates). Our members use these numbers to verify the performance of their art investments; either in artists or in art market portfolios. The performance indicators includes the risks, return rates, Sharpe ratios, diversification benefits, and asset protection of art investing.