He began collecting at the young age 12, and has been expanding his collection ever since.

Tony pointed out that if an artist spends too much time promoting his own works, he could easily become frustrated and disillusioned, and loses focus.  A good dealer can market and introduce artists' works so they can concentrate all their energy on the creating artworks.

When evaluating a piece of painting, the quality of the particular work is more important than the name of its creator.  Many famous artists created mediocre works that would not hold their values long-term.  When a quality artwork is found, the collector is advised to hold on to it for at least ten years, to fully maximize its potential for value appreciation.

Paintings before the 1850s are classified as ancient Chinese paintings.  Most of the artworks back then were not for sale, they were created for the purpose of satisfying the artists’ creative urges and for their spiritual enrichment.

After China opened up to the Western world in 1850s, cultural and artistic influences from the West started to flow into China.  At places with substantial international commercial activities, such as Beijing, Shanghai, and Guandong, there were schools that train professional painters who combine styles and techniques from different eras.

Paintings after the year 1850 are considered contemporary Chinese paintings.  Many famous painters, such as Chi Bai-shi, Zhang Da-cheng, and Fu Bao-shi, are all representatives from this era.

There are seven basic elements that determine the value of the artwork: Authenticity, exquisiteness, novelty, rarity, origin, importance, and topic.  Investors can assess the values by comparing the recent transaction and bid prices on the Sotheby’s website, and by consulting with experts.

According to the statistics from the top ten auction houses, Chinese paintings' compound annual growth rate over a five-year period was 12.9%, but was inconsistent.

For the paintings of contemporary master Chi Bai-shi, the annual compound growth rate over a five-year period is 33%.  There were 2079 auction items on sale, with 1590 sold, resulting in a 76% transaction rate.  The average price was $36,825, with the highest price of $2 million, sold in November of 2003.

Zhang Da-cheng’s paintings have annual compound growth rate over a five-year period of about 25%.  Out of 1762 items on sale in auctions, 1272 were sold, resulting in a 72% transaction rate.  The average price was $39,850, with the highest price of $1.3 million, sold in October of 2004.

For the artworks of Xu Bei-hong, the annual compound growth rate over a five-year period is 23%.  There were 526 auction items on sale, with 364 sold, resulting in a 69% transaction rate.  The average price was $58,764, with the highest price of $1,995,164, sold in November of 2004.

9 Golden Rules of Investing Chinese Arts:

1) Learn more about Chinese culture and arts.  Be a collector before becoming an investor.

2) Consult with experts and consultants.

3) Only invest in the top works of the artists.  Focus on the works of the top 150 artists with the most potential for appreciation.

4) Invest in traditional works from 19^th and 20^th century.

5) Beware of the consequences of being greedy.

6) Do your homework.  Evaluate at least five paintings before purchase (one or two quality buys each year is sufficient).

7) Concentrate on the works of artists with a consistent five-year track record.

8) Keep the works for at least 10 to 15 years.  Let compound interest increase the value of your collection.

9) Follow the previous rules to become a smart, sophisticated investor.