30/05/2025
Author: Nima Behnam
A painting comes to life in an artist’s studio and may eventually command attention in a bustling auction room. What unfolds in between is a story of value, desire, and human motivation. Fine art is a product of creativity, but it is also a mirror to reflect culture, impulses, and decisions of those who choose to collect it.
The consumption of fine art does not require any monetary transaction. One can simply view and appreciate a piece without owning it. However, it is ownership that creates the market.
Although a work of art can exist without being sold, once an artist, their estate, a collector, or a dealer brings it to market, it becomes a commodity. It is assigned a price (or a price estimate), and the laws of supply and demand are applied. Thus, the concept of the art market is formed.
The focus of this article is only on ‘demand’ in the art market. More specifically, the motivations behind the demand. In other words, it would be a brief attempt to explore the question, ‘Why do people buy art?’
Understanding the drivers behind the ownership of art is challenging, as they vary significantly between individuals, and even in the context of a single artwork. Two people may compete to acquire the same piece, yet their motivations can differ entirely. These motivations have changed and evolved over time and vary across market segments and price levels.
From an economic perspective, the act of art ownership is more of a want or desire rather than a need. Art ownership is not a basic human need, making it susceptible to a range of internal and external influences, from macroeconomic conditions and cultural contexts to personal psychological factors. Importantly, ownership usually arises from a matrix of motivations rather than a single cause. This matrix functions differently for each individual, even in cases where two buyers compete for the same artwork. To better understand these drivers, it is helpful to identify and examine each motivation separately.
Before exploring motivations, it is useful to consider the concept of ‘value’ in art. Value refers to the intrinsic or assigned qualities of a work. In The Value of Art, Michael Findlay identifies three primary types: essential value, social value, and commercial value. These values exist in a work of fine art regardless of demand and can activate a variety of motivational triggers for potential buyers.
Motivations, on the other hand, are the reasons an individual decides to act. They are the drivers or triggers that convert those qualities into a purchase, which is the exchange of monetary value. This article sees the motivations in the demand for fine art into four categories: Decorative, Psychological, Social, and Financial.
*Decorative*
Although generally there is a line that divides decorative art and fine art, an intention to decorate a space with a piece of art can lead to the purchase of a fine art. This motivation is heavily influenced by personal taste and is particularly common in the lower to mid-tiers of the market, where decorative intent is often the primary reason for a purchase.
*Psychological*
Psychological motivations are amongst the most personal and complex reasons behind art collecting. This dimension of demand is often associated with collecting as an emotional or introspective act. Ruth Formanek, in the article Why People Collect: Collectors Reveal Their Motivations (1991), draws on a range of psychoanalytic theories to explore the inner drivers of collectors.
These motivations are deeply rooted in the psyche and are unique to each individual. Collecting may emerge from a personal passion for art, an emotional connection to a subject or medium, or even a compulsive desire to possess. For many, the impulse is not entirely rational or easy to articulate. In this context, identity becomes a central theme. The act of acquiring art reflects aspects of who we are, what we value, and how we see ourselves in the world. The artwork becomes a mirror of the self. It can serve as a non-verbal affirmation of one’s identity, a private reminder of what matters most, or even a tool for constructing the self over time.
*Social*
Collecting art can also be a social act. It relates to how individuals wish to be perceived, which social groups they align with, and what legacy they hope to leave behind. Social motivations may include signalling status or wealth, supporting artists, philanthropic endeavours, or continuing family traditions.
Ownership of art can serve as a silent but powerful communication of social standing. For instance, spotting an original Picasso on someone’s wall instantly signals affluence and cultural capital. In this context, art behaves much like a luxury good.
Equally, collecting may be an act of support. Buying work from an emerging artist can provide them with the resources needed to continue their creative journey.
Philanthropy is another social motivation. Acquiring art in support of a cause, whether initiated by the artist, a former owner, or an institution, can be a powerful incentive for some collectors.
Family tradition also plays a role. In many families, collecting has become a generational custom, and there may be implicit pressure to maintain and continue this practice.
*Financial Investment*
Financial motivation is simply an act of purchase due to an anticipation of a future sale in exchange for more monetary value. The later sale could be short-term speculation or a long-term investment. Moreover, in some countries, buying art brings tax benefits, making it appealing to a certain group of individuals.
Art, in financial terms, is seen as a hedge against inflation. Therefore, it is considered as a means to diversify a portfolio. In that regard, fine art is weighed against other assets.
Not every artist/artwork receives such a status to be seen as a sound financial investment. The question of what makes an artist ‘investable’ is a complex topic outside the scope of this article. But broadly speaking, it depends on factors such as whether the artist is alive or deceased, their background and stylistic consistency, the nature of the market (primary or secondary), their institutional affiliations, academic research, and the writings of critics.
Artists who benefit from a combination of these factors are more likely to command high prices and attract investment interest.
The investment aspect is undeniably part of modern art collecting. Whether it’s a young tech millionaire viewing art as a long-term asset or a seasoned collector considering resale value for estate planning, financial considerations play a significant role in why people buy fine art today.
Understanding the motivations behind the demand and the value embedded in a piece of art will help early collectors, seasoned ones, and art enthusiasts. It does help the individuals to understand and acknowledge their thoughts and emotions when it comes to ownership of a piece of fine art and also in recognising one’s own motive which can prevent buyer’s remorse or guide portfolio allocation.
None of these motivations has any advantages or disadvantages over others. They merely exist in our mind to shape a unique trait of human behaviour. These motivations are imperative in maintaining the healthy creation of artworks and the consistency of demand for the creative pieces in an age when they are in great need of protection and support.
*References:*
Findlay, M. (2022). Value Of Art. S.L.: Prestel Art.
Mcandrew, C. (2010). Fine art and high finance : expert advice on the economics of ownership. New York: Bloomberg Press.
Mcandrew, C. (2025). ART MARKET REPORT 2025. [online] Available at:
https://theartmarket.artbasel.com/download/The-Art-Basel-and-UBS-Art-Market-Report-
2025.pdf.
Mcandrew, C. (2025b). SURVEY OF GLOBAL COLLECTING 2024. [online] Available at:
https://theartmarket.artbasel.com/download/The-Art-Basel-and-UBS-Survey-of-Global-Collecting-in-2024.pdf.
Melanie Gerlis (2014). Art as an Investment? Ashgate Publishing, Ltd.
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