Rembrandt works of art at auction

In this master thesis I examined the market of Rembrandt works of art sold at auction between 1986 and 2007. I investigated which factors and what phenomena play a significant role in the determination of prices. Rembrandt’s high prices in general can partly be explained by the specific circumstances of his life. The fact that Rembrandt was born in the right place at the right time, that he was already soon discovered by the experts and his difficult personality, must have had an influence on his later popularity. Due to the Rembrandt Research Project (RRP) Rembrandt’s oeuvre gets smaller. In economic terms this implies that his supply becomes scarcer and hence, his prices higher. During the investigated period the market for his prints, drawings and paintings did not become thinner. His average price of prints and drawings did, however, increase. This may be due to the fact that the “brand” Rembrandt became bigger. The market for Rembrandt paintings has been extremely thin for more than twenty years. The prices of paintings did not seem to grow. With the help of a quantitative and qualitative analysis, the following points were found: The pre-sale estimates turned out to be good predictors of hammer prices. This may confirm the idea of experts as producers of value; Sotheby’s and Christie’s were best able to attract the most expensive paintings; A weak relationship exists between the price and the number of years that lies between two sales; Panel paintings seem more expensive than pictures on canvas; No clear relationship seems to exist between size and price; A proof of authenticity of the RRP is a strong predictor of price; Signature has a influence on price; A refined and “finished” style is appreciated by the buyers as long as it remains “rembrandtesque”; Subjects close to Rembrandt as an person, e.g. an portrait of someone close to Rembrandt, seem to be valued higher than for instance commissioned portraits; Head pictures are highly valued. This may be due to the fact that these “fantasy figures” are products of the master’s mind. It’s typical refined style may however also be the cause for this; Rarity in case of subjects does not seem to play a role. But paintings of rare working periods seem to have a price increasing effect. Finally, I investigated the buyers and sellers of Rembrandt paintings. Conspicuous consumption may play a role in the motivations of buyers. This is, however, difficult to proof. The market consists mainly of dealers which implies that the market can be characterized as a wholesale market. The auction prices are therefore relatively low.