Why are paintings so expensive?

Artworks have long ceased to be perceived solely as objects of cultural heritage. Today they are a full scale investment instrument comparable to premium financial assets. The key reason is the stability of value for historically recognized artists and the limited supply available on the market.

Transactions of this scale are driven not by aesthetic value but by reputational and strategic capital. Competition for rare works is viewed by collectors as a way to reinforce status and diversify assets.

According to art historian Polina Egarmin, the high price range is shaped by a combination of symbolic and institutional factors.

"The sale of Gustav Klimt’s portrait Elisabeth Lederer for $236.4 million shows how the global art market operates today. Such deals may look surprising to outsiders, but for professionals there is nothing accidental in them.

The price of art is formed not on the canvas but within a complex system of symbolic components. The value of a work is a formula built from four elements: the artist’s name, the authority of the gallerist, the power of the auction house, and the status of the collector.

That is why art has become an investment asset. It functions as a storage of reputation. In the Klimt deal we see a rare portrait, outstanding provenance, and the cultural weight of the artist. Such objects become trophy assets and their value goes beyond rational explanation."

How the price of art is shaped

Analysis of the art market shows that the value of artworks is formed by several interconnected factors. One of the key elements is the artist’s brand and stable demand for their works confirmed by long term sales dynamics. Provenance, the ownership history of a piece including its exhibition biography and previous collectors, is equally important. Verified provenance strengthens trust and increases value.

Institutional support and participation of leading auction houses play a substantial role, shaping market expectations and creating a competitive environment for buyers. Price is also influenced by rarity, including the period of creation and the availability of comparable works. Behavioral mechanisms matter as well: competition among collectors and the FOMO effect, where the fear of losing a unique object pushes bids higher.

Another major factor is the limited supply. Most significant works are already kept in private and museum collections and only rarely enter open circulation, which increases scarcity and drives prices upward in the trophy art segment.

The example of Leonardo da Vinci: Salvator Mundi

Let us examine a concrete case. The most expensive artwork ever sold at auction remains Salvator Mundi, attributed to Leonardo da Vinci. In 2017 it was sold at Christie’s in New York for $450.3 million.

This record price was driven by a combination of key factors.

The artist’s name as a brand: Leonardo da Vinci is the absolute pinnacle of the art canon.

Provenance: for many years the painting was considered lost, then rediscovered, restored, and authenticated by leading experts.

Role of the auction house: the sale took place at Christie’s, known for creating a unique emotional context for record deals.

Rarity and period: very few works by Leonardo have survived. Works in private hands offered for sale are practically unique.

The factor of artist’s death: although Leonardo died five centuries ago, the irreversibility of his artistic legacy remains a foundation of pricing.

Collector psychology: the market for Old Masters is almost closed, with most works secured in museums. In the final minutes of the auction pure FOMO was at play, with the winner buying access to immortality of a name.

"As they say at auctions, you do not bid with your wallet, you bid with your ego", Egarmin noted.

Modern record holders

The portrait Elisabeth Lederer by Austrian artist Gustav Klimt, sold on November 18, 2025 at Sotheby’s in New York for $236.4 million, became the most expensive piece of modern art ever sold at auction and a key indicator of rising prices in the modern segment.

Another notable example is The Empire of Light by Belgian surrealist Rene Magritte, sold in 2024 for $121.1 million.

The absolute leader among women artists is Frida Kahlo with her self portrait El sueño (La cama), sold for $54.66 million and setting an all-time auction record for works by a female painter.

Kazakhstan in art market dynamics

According to Polina Egarmin, growing interest in international collecting projects is also visible in Kazakhstan. Over the past two years the Lumiere Hall Museum has brought private collections of Salvador Dali, Pablo Picasso, Andy Warhol, and Banksy to the country.

Earlier Qazinform News Agency covered the exhibition Pop art: Warhol, Lichtenstein, and others. The show presented more than 80 works by Andy Warhol, Roy Lichtenstein, Keith Haring, and Banksy, as well as a Kazakh interpretation of pop art by artist Mimi Ilnitskaya.