Once an elitist activity reserved for a maverick few, collecting contemporary art is a highly rewarding method of disposing of surplus income in a way that feeds the eye, the soul and – if so desired – the social life. Yet for many this process can be alienating and confusing. Which gallery? What kind of art? And how do you tell if it’s any good? But by following few basic steps, collecting contemporary art can be challenging without being terrifying, and can even become a lifelong addiction…

First, be prepared for some homework. Collecting art is a specialist activity and it’s important to do your initial research. Go to as many galleries – public and commercial – as possible and look, look, look. While an art history degree isn’t necessary, concerted looking trains the eye and enables informed choices. It’s not enough to declare, “I know what I like” – good collectors know why they like.

There’s an art world cliché that collectors should buy with their eyes, not their ears – it’s important to be aware that however strong the ambient hype, fashionable art is not necessarily the best. Good collectors focus on the art itself, not the surrounding noise that often inflates prices.

Art is a luxury but it need not be a punishingly expensive one. Collecting art can accommodate all budgets – it’s the eye and the passion that counts. One of America’s most important collections of modern art was built in the 1960s by Herbert and Dorothy Vogel, a postal clerk and a librarian who filled their one-bedroom apartment with over 2,500 small but top-quality works by some of the twentieth century’s leading artists, including Andy Warhol, Donald Judd and Sol Lewitt. Now it’s all in the Washington National Gallery of Art. The secret of the Vogels’ success was to understand that, whatever the budget, it’s crucial to get the very best of its kind. Big names such as Tracey Emin, Grayson Perry or the Chapman brothers often produce ‘diffusion lines’ of prints, limited-edition works or multiples – the term for a mass-produced item. (A very fetching Grayson Perry sampler was recently on offer for around £500.)

A more adventurous and potentially satisfying course is to seek out younger or less well known figures. By investing in artists at the beginning of their careers, it’s possible to acquire a more major work – and of course, there’s also the warm glow of having given an artist crucial support before everyone else jumped onto the bandwagon. (This glow gets even warmer if their career flourishes and that investment pays off.) Artists rarely forget their first supporters and lifelong friendships can be made. Damien Hirst, for one, is very loyal to his early collectors.

The main conduit into the contemporary art market is via a primary art dealer, who works directly with artists. These commercial galleries can range from multi-million pound operations to small, often artist-run, spaces. It’s important to establish personal contacts with a number of galleries, having done the basic research first. It often makes more sense and can be ultimately more satisfying for the new collector, to make friends with smaller galleries eager to grow their collector base along with their reputations.

Although the dealer is the main point of purchase, it’s worth exploring all outlets. Big art fairs like Frieze or Art Basel provide a total immersion in the international art world. Although they can seem daunting, it’s a great opportunity to see who’s showing what, the scope of what’s on offer and to meet and talk to dealers who’d normally be hidden in the back rooms.

Auction houses are invaluable sources of information on artists and their market as all hammer prices are in the public domain. They’re more unashamedly, straightforwardly commercial than art dealers as on the sale day it is simply the highest bidder who gets the prize.

Buying art unseen over the internet should be avoided. Horror stories abound of woodcuts that turned out to be dodgy photocopies, works which seemed small turning out to be billboard-sized and vice-versa. There’s no substitute for seeing the real thing and having a direct encounter with a dealer or auction house expert, although the internet is useful for checking prices, either using a specialist paid-for site such as Artnet or auction house websites.

Some don’ts. Firstly: don’t haggle. Because the art market is unregulated, the pricing of works can seem mysterious.. The issue of discounts is a delicate one and you should proceed with caution – there’s a fine line between negotiation and haggling. In a world where personal contacts are paramount, a certain amount of delicacy is advisable. But do check if VAT is included.

Probably the biggest and most surprising ‘don’t’ is: don’t buy art to make money. Speculators beware: the art world has finely-tuned antennae for those putting financial considerations before a genuine empathy and enthusiasm for the art itself. Any art buyer, great or small, is expected to make a personal as well as financial investment. Also, never forget that in the famously volatile art market the artist racking up rows of zeroes today, can easily plummet from fashion and in value. The best thing is to buy art because you love it – if it becomes worth much more than you paid for it then that’s a bonus.

Louisa Buck
Owning Art: The Contemporary Art Collector’s Handbook by Louisa Buck and Judith Greer, Cultureshock Media £14.95