How To Collect Art 101

Introduction: The Art of Collecting Art

Welcome to our 101 on how to collect art, a resource for both the brand-new collector and the more experienced collector looking for new perspectives to improve their art collection and collecting process.

By sharing our experience and expertise in the art world as a platform for contemporary art, art gallery, and art collection, our mission is to support collectors navigating the art world as an insider.

So, today we take our art-collecting practice into our own hands! We will explain how the art market works, so you will know what to expect and where to collect, followed by some key tips on how to get the most value and satisfaction from being an art collector.

1. How To Collect Art? — Two Philosophies Explained

Arguably, there are two main directions one could go—or navigate in between—when it comes to collecting art.

The first is focused on acquiring art you like, most often by emerging artists, bought on the primary market and in a price range of $1.000 up to $10.000. Here, you collect with the heart in the first place. You like the artwork and the artist, so you collect the piece—without any intention of selling the artwork later to make a profit on this investment—and will probably give the artwork a prominent place in your home.

These collectors primarily collect art from emerging artists—meaning artists whose careers are still in the early stages, doing some exhibitions at small to medium-sized galleries but not yet making a mark on the art world when it comes to being featured in institutional shows, collections, or publications. The price range for emerging artists is approximately $1.000 up to $10.000 depending on the artist, medium, and size of the artwork.

The collector aims to support the artists in this early career stage. They either purchase the artwork directly from the artist or via the gallery representing the emerging artist. In other words, they become the very first owner of the artwork after it has been made by the artist—meaning the collector bought the artwork on the primary market.

The second type of art collecting is focused on the potential return on investment when acquiring an artwork, focusing on blue-chip art, often on the secondary market, with a price range of +$50.000. Here, one collects with the mind in the first place, approaching art as an investment—often storing the artwork somewhere safe—to sell the artwork in the foreseeable future to make a profit.

Blue-chip artists—or established artists—have a tremendous selling history due to the steady demand in the art world and beyond. These top-tier artists feature in numerous public art collections, institutional exhibitions, major art events, renowned art publications, et cetera, having nested themselves in the canon of contemporary art, guaranteeing longevity for their career, and also when it comes to the value of their art.

Generally speaking—once again depending on the medium, artist, and dimensions of the artwork—the price range to collect blue-chip art start around approximately $50.000 up to $3.000.000, referring to the most expensive modern/contemporary artwork in the world, Interchange from 1955 by Willem de Kooning. These million-dollar sales occur in the secondary market—meaning all sales after the first sale, often at auction or via art dealers and art galleries focusing on the secondary market.

It is also possible to purchase blue-chip art in the primary market, often at a much lower price than at an auction. However, due to this tremendous possible return on investment with established artists, galleries are reluctant to sell blue chip art to unknown private collectors to prevent seeing the piece they sold a year later at auction, selling for a multiple of the original asking price—so the private collector earned more in the artwork in question than the gallery or the artist—or not selling at all or below expectations harming the selling history of the artist in question.

In reality, most art collectors navigate between these two philosophies of collecting art. Some are more focused on the art they like but still hope and believe the artist in question will be a future star, making their $5.000 purchase a visionary and strategic masterstroke. In contrast, others focus on art as an investment but still prefer to like the artist and to have the artwork in their home or office to admire daily.

When it comes to the return on investment, you are much more likely to see your money back and to make a profit by collecting blue chip art; however, this is only a possibility for the super-wealthy. A 20% profit over ten years is very realistic with blue chip art. Yet, on the other hand, if you have an eye to recognize future stars and collect them at the beginning, the return on investment might be much less likely, but it is more volatile, with the possibility of 200% or even 2000% profit. So collecting emerging art can be a lot more volatile, with greater risks but also greater rewards.

2. Where To Collect Art?

2.1 Art Galleries

Art galleries are arguably the first place to start collecting art. They play a crucial role in the art market and account for almost the entirety of the primary market. They are the link between the artist’s studio and the collector and, to an extent, the entire art world.

Art galleries collaborate with artists, representing and supporting them. They offer a platform, a voice, and an infrastructure for the artist to prosper career-wise. By doing so, as a collector, you can discover new artists at art galleries, seeing their works in the flesh in an ideal environment.

Collecting art at art galleries is very straightforward. You enter a gallery, ask for a price list, and if the work you are interested in is still available, you can purchase it. However, as soon as we enter high-tier art galleries, things become a bit more tricky—as we have mentioned earlier in our article, it becomes harder for private collectors to purchase blue-chip art—and with the mega galleries, it almost becomes impossible.

If you wish to learn more about art galleries, read our in-depth article The Art Gallery: Everything You Need To Know. Further, feel free to discover our very own art gallery, CAI Gallery.

2.2 Art Fairs

As a collector, art fairs can be terrific events to consume a tremendous amount of art in a single day; all packed under the same roof. You can stay posted on what’s hot at this very moment in contemporary art at the booths of the mega-galleries, or you can discover hidden gems at the booths of the emerging galleries or in the ‘discovery’ section of the fair.

Art fairs can sometimes be a bit over the top, or even vulgar, and of course very commercial, but in the end, it is always an experience—with often some very fun parties. Galleries pay tremendous amounts to have a booth at art fairs, so they are very focused on selling. As a result, collectors are more than welcome!

2.3 Artist Studios

Another great place to collect art is inside the artist’s studio. Studio visits play an essential role in the life of an artist. They gladly open their doors to gallery directors, curators, and collectors. So if the artist lives nearby and he does not have any shows coming up in the foreseeable future, but you are very curious to see and experience their work in real life, don’t hesitate to take up contact and ask for a studio visit—the artist will happily accept.

These studio visits are, in fact, an ideal place to get to know the art but also the artist. You can see their brushes, sketchbooks, process, and more, giving you a unique and exclusive insight into how the artist works. And above all, you can get to know the artist personally, which brings us to our next chapter.

3. Develop Personal Relationships in the Art World

In the end, art is always about people. The artists making the art, the story behind it, the gallery directors who picked them from their studio and are elevating them to an international art scene, or the collectors who are so passionate about art that it becomes a hobby to collect and support emerging artists.

By developing personal relationships in the art world, you will not only gain access to more art and behind-the-scenes stuff, but you will also broaden your perspective when it comes to art by engaging in a dialogue with various actors in the world—and it will be a lot more enjoyable when you can share your experience of discovering and collecting art.

Further, from a networking point of view, knowing some people in the art world can be very interesting to attend private openings and having the first opportunity to collect before it opens to the public. Or, you could hear exciting gossip from a collector-investor perspective; for instance, an up-and-coming artist who a mega-gallery will represent in the foreseeable future, so now is the time to collect a piece before their prices go up drastically.

Having a personal relationship with artists and galleries is not only the start of a budding friendship, but it can also result in a special discount from the gallery owner as a token of gratitude for the excellent relationship. And then there is also the fun stuff which is connected to being acquainted or even friends with gallery owners, artists, or other collectors; think of the dinner parties in the gallery space before the opening of a show or the afterparties having some drinks with one of your favorite artists who apparently is a good dancer as well.

Art is about people. Every artwork and exhibition has been created by people who share your passion, which is art. By doing so, collecting art becomes even more meaningful; art is a feast. Rejoice and participate in its joy.

Last Updated on July 12, 2024