Many art lovers got excited about investing in contemporary works after witnessing the record-setting prices paid for pieces by Alexander Calder and Barnett Newman at auction earlier this year. New collectors learn quickly, however, that it's not easy to enter the market on their own: The art marketplace is opaque, and you need insider information to succeed. About half of all sales are made privately or through galleries, so only well-connected professionals can make the most of pricing information from those deals.

Our firm provides many private and corporate clients with advice on buying, selling and managing their collections of fine and decorative art. Here are some practical pointers to help you break into this market.

Immerse yourself 

As with a car or a house, you need to understand what you are buying. Familiarize yourself with the artists whose work you plan to purchase and their resumes. Most galleries organize opening parties for exhibitions. Artists sometimes invite collectors to their studio or ask their galleries to invite collectors, as well. These events are a great opportunity to speak with fellow collectors, the gallery owner and often the artist.

If the artists you enjoy have a secondary market-one that sells their work after it has been purchased for the first time-do some price research. For instance, you might look up auction records online.

Tap digital data

Experienced collectors often subscribe to online price databases that help them sift through publicly available information. These sites can be a valuable source of information on what an artist's work currently commands at auction and how that value has changed over time. A good advisor can point you to the best databases to research the artists that interest you.

Find a guide you can trust

Many collectors work with an agent, advisor or broker when buying or selling art. The easiest way to find one is to ask other art collectors for word-of-mouth recommendations. The best intermediaries will be happy to answer your questions and be transparent about how they are paid. They will also be clear about what their commission is. For instance, they might charge a 10% commission on every transaction. Agents who take a commission from both sides of the transaction have a conflict of interest. Steer clear.

When buying artwork, seasoned collectors often get a second opinion on its value, condition and provenance. That's a smart practice.

Safeguard your investment

Contemporary art is an investment, and if you decide to sell it in the future, you will need certain paperwork. Ask for an invoice stating the name of the artist, the title of the piece, the media used in the artwork, its measurements and the date of production. If you are buying a multiple (i.e., a lithograph, a photograph or bronze sculpture from a series), the invoice should state the edition number of the work and the edition size. The invoice should also state the sales price and any applicable taxes. Get a certificate of authenticity from the artist, gallery or artist's estate.

Also find out if the work has been exhibited and written about. Publicity can add to the value of any artwork.

Provenance is usually more of an issue with older works, such as an Old Master or Impressionist painting, but even with contemporary work you need to make sure that you know if it came directly from the artist's studio, the gallery or from other collectors who own it.

Understand the condition of the work

Whenever you buy, it is best to view the artwork in person. Ask the seller for a condition report, which as the name suggests, describes how well preserved it is. The report is likely to be written by a staff member of the auction house or gallery. Always ask for high quality photographs of the work taken from all angles (for example, the back of a painting) and detailed close-ups of signatures, marks and damaged or restored areas.

If the work is especially valuable, consider hiring an independent conservator to provide you with a more detailed report. For example, if the work has been restored you need to know how the restoration was done and who did it. Ask the seller if there are specific maintenance instructions, so you can keep the work in the best condition possible. Great opportunities to sell can arise unexpectedly, and your investment experience will be much more rewarding if you are ready to take advantage of them.