Money and motive: Art buying for beginners

Damien Hirst, Picasso, Van Gogh; forget them all. To be on the cutting edge of the contemporary art scene, you have to buy Chinese. Such has been the rise of Eastern art that many who never would have considered art acquisitions now fancy themselves as recreational collectors.

But the contemporary art world can be befuddling, so here’s our starter kit to buying art in Asia.

Analyze motives

Let’s start by analyzing a beginner’s motives. Are you collecting for investment purposes or for the love of the art in question? This will determine many of your subsequent steps.

Determine budget

Collecting fine art requires a certain amount of disposable income. Dropping at least HK$20,000 per month on Louboutins and spa treatments? Consider spending that on art instead.

Choose a country

As well as China, Korea and Vietnam have a number of contemporary artists on the rise. But the choice of where is very personal, and it should be. Experts suggest supporting the local artist community where it is easier to get a feel for the scene and the artists of interest. However, developing countries are a boon to those who don’t want to break the bank.

The deep-pockets option

A safe way to get started is with one or two well-chosen pieces by established and internationally recognized artists such as Zhang Xiaogang (of the famous Bloodlines series). But be prepared to fork out a pre-recession era bonus as these works often sell for over HK$20 million.

Starting young

Another approach is to start with young, emerging artists. These works will be less expensive and therefore better for those with a smaller budget. Expect to pay anywhere from HK$10,000 to HK$250,000 at a gallery for up-and-coming Asian artists.

Obviously there is more risk involved with new artists in terms of return on investment but it is a good way for younger collectors to develop their understanding of the market. As appreciation grows, so does the fiscal potential of the works purchased.

Prints for the intimidated

Prints and photography may be the best starting point for those not willing to spend or those still intimidated by collecting. It’s easy to find lithographs and photographs under the HK$10,000 mark around Asia. If the principal aim is to invest, then prints don’t offer the same returns as original works of art, but sometimes you can get lucky. For instance, limited edition Warhol or Chagall prints now sell for millions of Hong Kong dollars.

Diversity is an important part of building an art collection and ideally you should incorporate both original works by established and emerging artists as well as photography and prints.

Although your motives and budget for beginning a collection are probably linked, gallerists and art consultants agree that above all else you should only buy art that you really like. In the end, appreciation or not, you’ve got to live with it.