Gone are the days when you could snap up a contemporary masterpiece for a pittance in Beijing and then sell it for a small fortune abroad. China is no longer the land of the undiscovered artists, but that doesn’t mean that you can’t get your hands on some great pieces for a reasonable price with a bit of background knowledge and the right questions in hand.

“The biggest and most common mistake people make is jumping in and buying an artwork too early because they read an article or a friend assured them that it was a good investment,” explains Jehan Chu, an art adviser and director of Vermillion Art Collections in Hong Kong. “You wouldn’t buy a car or a house simply because ‘you just like it,’ and you shouldn’t buy art without researching it first.” Chu says he spends time introducing his clients to a wide range of art before allowing them to buy anything, helping train their eye and understand the art and the current market.

WHERE TO START

According to Colin Chinnery, director of the SHContemporary art fair in Shanghai, it is worthwhile, and fun, to start by simply browsing through art history books and artists’ catalogs. Then, he suggests, spend half a day visiting galleries to see what personally takes your interest. “Keep challenging yourself. As your eyes see more art, your taste becomes more sophisticated,” he explains. And, if someone likes a work that you don’t, ask why. It doesn’t mean you should like the piece, but their appreciation may give you a new insight into the work.

Art fairs can be a good source of knowledge on the market, giving information about what’s out there and how much it costs. “There are fairs in Hong Kong, Beijing, Shanghai, and elsewhere around the world that show large quantities of Chinese contemporary art,” explains Tom Pattinson, who co-founded one such event, Affordable Art China, in Beijing five years ago. “One day walking around there and looking at the prices gives a good idea of what you can get for your money.”

But with so many pieces on show, art fairs can be overwhelming. Chinnery offers this strategy for trips to the fair: go on the first day to take in the scene, noting 10 galleries you’d like to visit. On your second day visit just those 10 galleries. “If something else grabs your interest save it for another day. “You should leave excited to see more rather than exhausted and barely able to distinguish one work from another,” he explains.

MAKING YOUR FIRST PURCHASE

“At the beginning, don't spend too much money,” Chinnery recommends. “It takes years to train your eye, and you don’t want to drain your pocket in the process.”

“Affordable Art China gives people access to art and the confidence to get involved with the art market,” adds Pattinson. “Many people I know bought their first works at AAC and have gone on to the next level of spending tens of thousands and then hundreds of thousands of RMB on art.”

Yet, while art fairs can be an easy way to buy a simple piece or two, those wanting to collect more seriously may want to work with an art dealer or adviser. “Most dealers and advisors maintain a wide network of contacts that allow them to find certain artworks, gain access and negotiate prices,” explains Chu. “The average first-time buyer is handicapped by their limited knowledge and network. Working with a dealer or advisor can help save time and money.”

Whether you chose to work with a dealer or adviser, or patronize certain galleries, look for someone you get along with and who understands your taste. “It’s like making a friend – you meet a lot of people, but you don’t like everyone,” explains Leslie Kuo, manager of Leo Gallery in Shanghai. She adds that, while finding a gallerist who understands your aesthetic and financial preferences is essential, keep in mind “they represent the artist so they want to give a positive spin.”

As you begin to work with galleries, you will also get on their VIP list for openings, furthering your knowledge of the art world and new artists through the people you meet.

SHContemporary, for one, offers a Collector Development Program with educational events, advice on how to cultivate a collection and networking opportunities.

LEARN TO ASK THE RIGHT QUESTIONS

Art experts insist that you should buy what you love without worrying too much about the investment value, but no one wants to be taken advantage of, and, let’s face it, art can be a good investment. Pattinson offers the example of Chinese photographer Zhou Jun, who sold some of his first works at Affordable Art China in 2006 for a couple of thousand RMB each. In 2007 his works were selling for RMB 20,000 and since then regularly go for upwards of RMB 40,000.

While galleries, auctions and dealers determine a work’s price, its artistic value — and potential to increase in worth — rises based on good reviews from critics and placement in museums, biennales and high-profile gallery shows. A look at the artist’s CV can be useful when you consider purchasing a work: an artist who graduated from a good art school, has shown in increasingly prestigious places and boasts positive reviews is likely to be a good investment. Also consider who has already collected pieces by the artist and whether a prestigious gallery represents them.

“The work is only one part of an artist’s identity,” explains Chinnery. “The CV is just as much a part.” Of course, the system isn’t fool-proof: if you love an unknown artist who didn’t go to art school, his or her works may still be worth buying – it’s just riskier from an investment standpoint.

“Choosing early-mid career artists is often the smartest move if you want your work to appreciate,” adds Tamsin Roberts, Pattinson’s Affordable Art China co-founder. “You need to look at previous work and see how the artist has developed themes as they have progressed to see the potential for them to keep growing.”

When you’ve found a work you like, researching prices from the artist’s prior sales and the prices of comparable works can help you get an idea of whether you’re getting good value – keep in mind that some galleries have been known to mark up prices of art works, anticipating that buyers will bargain down.

“Ask whether the piece is representative of the artist’s known work — this can be a good or bad point, but it’s a valuable consideration — how many pieces the artist typically makes and definitely request a condition report of the artwork [a statement about the work's age and overall condition],” suggests Chu. “If it is not a new artwork, you should also ask about who owned it previously and whether it has been exhibited or published before.” If an artist’s work has been sold at auction, look for those sales prices on resources such as Artnet.com and Artprice.com.

For emerging artists, ask whether well-known spaces or museums have previously exhibited their works. “Their job is to present the most interesting and engaging artwork, and it’s a good starting point for first-time buyers,” says Chu. Solo shows and exhibitions abroad can also be good indicators that an artist is catching the eyes of critics and curators, meaning he or she is likely to increase in importance.

When evaluating a print, make sure it’s a limited edition and ask the edition size – the smaller the better, although which number print you get doesn’t matter as far as value goes.

WHERE TO LOOK RIGHT NOW

Certain cities are known for their artists. “Chinese artists come from all over the country, but tend to hang around in larger groups in major cities where there are good art schools,” says Roberts, who lists Beijing, Hangzhou and Chengdu among the key metropolises. “Artists from Sichuan have a good reputation, as does the Sichuan Fine Arts Institute, [while] the Central Academy of Fine Arts (CAFA) in Beijing is still considered the best in the country.”

Lately, Leo Gallery’s Kuo has been interested in Chinese artists who were born in the 1970s. “They’re a generation removed from the Cultural Revolution, so their works deal more with modern China,” she explains. “And they’re not quite mid-career, but they have more of a track record than artists who were born in the 80s, so you can see how they’ve evolved as artists.”

Another consideration is a work’s theme. “Chinese art that references Mao imagery or Cultural Revolution themes has been overexposed and both prices and demand for all but the very top artists have declined dramatically,” says Chu. “I encourage my collectors to explore art that engages the international art world rather than art that relies too much on ‘being Chinese.’ Looking for the artists in this sphere is a good long-term strategy.” There are interesting works by modern ink painters that do just as he suggests. The artists take an ancient Chinese form — in this case ink painting — and imbue it with contemporary techniques and themes.

AFTER THE BUBBLE

“I think now is a good time to buy Chinese contemporary art,” says Kuo. “The economic downturn quickly sobered collectors who were buying anything Chinese thinking it would only increase in monetary value. Now, those continuing or starting to collect Chinese contemporary art are more discerning about what to buy and concerned with artistic merit.”

Many experts see the cooling off of the Chinese art market in the past two year as a necessary correction that would have happened with or without the global recession, but they’re optimistic about its long-term outlook with an ever-increasing wealthy class of Chinese meaning a huge new market for buying art and driving up prices.

“There are good opportunities for art buyers of any art right now,” says Roberts. “Chinese art, however, has been appreciating so dramatically that much of it is already on an international par and once it gets there, it is unlikely it will de-value.”

Whatever you choose to buy, take the long view and consider how your collection holds together. “In the art world there are hunters (collectors) and gatherers (buyers),” says Chu. “The best advice I can give is that you shouldn’t ‘buy’ art; you should ‘collect’ it. Most Chinese art buyers now are doing so in a haphazard and shortsighted manner. Collecting art is a long-term strategy that forces collectors to know more about the art and focus on a particular artist, theme or type.”

Ultimately, however, whatever you decide to buy, just make sure it is something that you love and could happily look at for the foreseeable future – hopefully as it appreciates in value, of course.