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Not just paint: Why are some artworks worth millions?

Abha Raverkar
By Abha Raverkar

4 min read | Updated on August 05, 2025, 17:01 IST

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SUMMARY

Mona Lisa was estimated to be worth $1 billion in 2024, and Salvator Mundi fetched $450.3 million at an auction in New York. But how are these prices even determined, and what sets the value of an artwork? Is it the painting’s history, the artist’s contemporary success or is it something more quantitative that determines its value?

Auction houses such as Sotheby’s and Christie's are among the heavyweights of the secondary art market. | Image: Shutterstock

Auction houses such as Sotheby’s and Christie's are among the heavyweights of the secondary art market. | Image: Shutterstock

On November 15, 2017, at the Christie’s auction house in New York, the world of art changed forever, as the bids came in for what would come to be known as the most expensive art sale in history.

Salvator Mundi, a painting depicting Jesus Christ in Renaissance garbs and also Leonardo da Vinci’s last work, was sold for a jaw-dropping $450 million to an anonymous buyer.

However, a pivotal question remains: how is the worth of a work of art determined? After all, art is subjective, with its value lying in the eye of the beholder.

To understand the economy of art, we need to know the players involved: the artist, the art appraiser, the auction house, the art gallery and the art collector.

The artist

If the artist is selling their work (which usually happens in the primary market), they determine the prices based on hours spent, material costs, medium used, their contemporary success, etc.

Art appraisers

Art appraisers are experts who determine the value of an artwork. Their work is more than just assigning monetary value; it's about identifying the deep cultural and historical value attached to it.

They look at factors such as the artist's success, condition of the work, historical or cultural context attached to it, and opinions of other experts to determine the “fair market value” of the piece.

Art collectors

They are individuals or entities that acquire artwork either for personal enjoyment or as a financial investment. Their willingness to pay a premium to acquire a work forms the root of their influence.

Art galleries

The endorsement of an art gallery is pivotal in determining the value of a piece of art and ensuring the longevity of an artist's career, especially for emerging artists.

Having one's paintings featured in an established gallery, such as Perrotin and Gagosian, gives artists important access to a wide network of curators, collectors, etc.

Auction houses

Auction houses such as Sotheby’s and Christie's are among the heavyweights of the secondary art market. To estimate the value of a piece, they look at its authenticity and its provenance, which is basically the recorded journey of the artwork from its origins through one or more owners to the present day.

SalvatorMundiMonaLisa.webp
Leonardo da Vinci's Salvator Mundi (left) and Mona Lisa (right). | Images: Wikipedia/public domain
The aforementioned Salvator Mundi by Leonardo da Vinci has a provenance spanning empires and continents, passing through the hands of kings, billionaires, and princes.

The painting is believed to have been commissioned by King Louis XII of France and his wife Anne of Brittany around 1500. It was acquired by King Charles I of England in 1625 and was sold after his execution in 1649. The painting disappeared from records between 1763 and 1900.

In 2013, it was bought by Russian billionaire Dmitry Rybolovlev for $127.5 million. He auctioned the painting at Christie’s in 2017, where it is rumoured to have been bought by Saudi Crown Prince Mohammed bin Salman via a proxy for a record-breaking $450.3 million, as per media reports. The provenance of Salvator Mundi is, in part, a huge reason why it fetched millions.
Another important price determinant in the art world is scarcity or rarity. There is only one Salvator Mundi, one Mona Lisa, and just one original Starry Night. These famous paintings are one-of-a-kind; they’re trophies in the eyes of art collectors. In fact, the same logic applies to contemporary art. For instance, a unique hand-signed, single-edition painting or sculpture has more value than a mass-produced version.
Mona Lisa, considered to be Leonardo da Vinci’s magnum opus, was estimated to be worth $1 billion in 2024, an inflation-adjusted value from when it was last insured in 1962 for $100 million. The Louvre, where the painting is housed, has since decided not to insure the painting as its true value is considered incalculable. The artwork’s value precedes the canvas it's painted on, given its cultural icon status, global recognition and historical importance.
According to experts, if the Mona Lisa were ever sold, it would fetch several billion dollars. However, the painting is unlikely to be sold, as it’s owned by the French government.

To conclude, the value of a piece of art is determined by a myriad of qualitative factors. Art is subjective; thus, its valuation, too, is subjective. The world of art is multifaceted, with different players, and is layered with cultural, emotional and historical context.

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About The Author

Abha Raverkar
Abha Raverkar is a post-graduate in economics from Christ University, Bengaluru. She has a strong interest in the markets and loves to unravel the nitty-gritties of the latest happenings in the world of markets, business, and economy.

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