What Impact Does An Artist's Death Have on the Value of an Artwork?

The death of an artist causing prices to rise is one of the biggest urban legends amongst novice collectors.

Simply stated?

An artist's passing most often means prices will soon drop:
not rise.

How's that possible?

It's a function of artworld acclaim, fame, historical auction prices and how the recently deceased artist's estate gets managed.

How an Artist's Death Increases Art Prices

First lets look at it from the opposite side: how prices can increase following the death of an artist.