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Thomas Galbraith’s TEFAF Presentation on Top Performing Artists: Part Two of Four
artnet's Index Methodology.
Thomas Galbraith
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In part one of this presentation, I discussed the discipline metrics of sales volume and sales value in terms of defining top performing artists. We also use these parameters to define our own market sector indices, such as Contemporary, Modern, and Impressionist Indices.
artnet is the only art index to hold itself to the standard of a financial index and publish its entire methodology online.
artnet Index Methodology: Repeat Comparables Example
Our patent-pending index methodology is a hybrid of repeat sales and hedonic regression. Perhaps the best way to think of it is as a repeat comparables method.
We take all of the works by one artist and group them according to USPAP standards, size, medium, visual consistency, etc. This leads to hundreds of sub groups per artist. We are then able to use sales data for similar works to see how the works in each group change in price over time.
This data allows us to see an index of individual series by an artist, such as Andy Warhol (American, 1928–1987):
Andy Warhol Top Series
You can also use this information to see an artist index, which is a combination of all of his or her sub-indices:
Andy Warhol vs. FTSE 100
Lastly, these records can provide market sector indices, which combine all the top artists from collecting categories such as Contemporary Art and Modern Art.
artnet Contemporary 50 vs. FTSE 100
To learn more about the artnet Index generation system and the calculation involved, read the complete artnet Indices White Paper.
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