How can you assign a dollar value to a piece art? This is a huge question. Fine Arts can be worth millions to billions of dollars. It's difficult to determine how much art is worth in comparison to commodities or stocks. What is the reason? Many people believe art is only worth what they see. One piece of art may be valuable to one person, but not to another. One gallery can give you an idea of the wide range of art's value. One piece can cost thousands of dollars. From a single piece to Picassos worth millions of dollars. What makes Picasso worth millions of dollars? Simple economics is the reason: Supply and demand. All art buyers, regardless of whether they are Picasso fans or investors looking to stash their money, want to own a Picasso. There are only so many Picassos in the world. As buyers outbid one another, the supply gap drives up prices To begin with the fine art is first appraised by fine arts appraisal services to know the value of the art piece. The high-end market for art is dominated by a few in-demand artists, whose work, such as Picasso's, is considered rare. Last year, the most expensive art pieces sold in all sectors was from deceased artists. In contemporary art, nearly half the public art auction sales were made by 25artists in the first six months 2017. The art market is similar to professional golf. When they win, a few professional golfers can make millions of dollars. There are many other golfers who make a fraction of these winnings. It's not just about the reputation of an artist that determines the price for a piece. Other factors include the size, genre, condition of the piece, their prices, and the places where they have been exhibited. Art Fairs like Frieze in London are a great venue for new buyers. They're likely to continue being so. The 2016 sales at art fairs reached an estimated $13 Billion, an increase of 57% from 2010. One survey found that half of art dealers believe the high costs associated with attending art fairs is a major business concern. The piece was sold for approximately $20,000, which is considered a great value. Even buyers who are willing to spend thousands can be discouraged by the notion that they must spend millions in order to join an elite club of art collectors. The million-dollar buyers are the ones generating headline after headline about record sales in the arts industry. A select few players dominate the top end of art market. They are very private about their businesses. It can be difficult to estimate how much they spend on art. Private art sales are increasing in popularity, which draws high net worth investors. This is because they are able to take advantage of tax breaks or make big returns on art. It is tempting for galleries, dealers, and auction houses to target high-end clients, who often pay millions of dollars, rather than the average Joe. This trend can be seen in the chart below which shows the global fine art auctions' value, the total dollar amount versus the number of sales and the number of transactions. Nearly half of the market's total value was made up of art that sold for over $1 million. Less than 1% transactions saw this. China is responsible for a lot the increase in high-end art sales after the financial crisis. It has made millions of billionaires and millionaires who are looking for investments. China is third in the world's art sales, behind the U.K. & the U.S. These three countries together make up 81% global sales. You don't have to spend millions just because art is expensive. You can find art you love for a few dollars as there are many people who Sell fine art and it is a worthwhile investment.