Sally He in Conversation with London and Geneva-based Art Advisor Astrid Rosetti Firmenich
Astrid's journey in art investment began over a decade ago when she graduated from Sotheby’s Institute of Art in 2013. Since then, she has carved a niche as a trusted advisor and consultant for private collectors, family offices, and corporate collections. Her expertise extends to the post-war and contemporary art markets, where she has honed her skills in sourcing and advising on art.
Astrid's extensive experience has led her to work with high-profile companies, including Deutsche Bank, where she provided valuable insights into the art market. With a keen eye for detail and a passion for art, Astrid has become the go-to for anyone looking to invest in this unique asset class.
Astrid Rosetti.
Sally He: What factors initially attracted you to pursue a career in art advisory, and what was the pathway that led you to enter the industry?
Astrid Rosetti: I was fortunate to grow up in a family that highly valued the arts, especially with my mother being an artist. As a result, it became a natural and expected aspect of my upbringing. I also grew up travelling extensively and visiting the world's most famous museums, which further fuelled my passion for the arts. I have since indulged in the art world and developed a deep appreciation for art beyond the visual. This curiosity led me to pursue a degree in fine art at the University of Art and Design in Geneva, where I honed my skills as an artist. I later came to London to pursue further education at the Sotheby's Institute, then became increasingly interested in the business side of the art world.
After graduating, I completed several experiences in the art world, working in auction houses, galleries, and a corporate collection, which gave me a comprehensive understanding of the complexities and diverse dynamics inherent in the art world. As I built up my connections in the art world, I set up my advisory firm, allowing me more flexibility in serving my clients’ needs. Since then, I have worked with many clients and helped them build collections. I have learned so much from these experiences, constantly growing and learning in my role as an advisor.
SH: From your perspective, what critical competencies are required for success in art advisory and private sales? Also, What obstacles have you encountered throughout your professional trajectory, and what strategies have you employed to surmount them?
AR: To be successful in any job, you must develop a genuine interest and curiosity about the art sector and learn as much as possible. This means constantly staying up-to-date with the latest trends, artists, and movements.
Furthermore, developing the capacity to understand your client’s requirements, anticipate their needs, and commit to putting their interests first is critical for developing robust and personal connections. You must be able to listen carefully to their goals and preferences and then use your knowledge and expertise to help them achieve their desired outcomes. It is essential to advise them honestly, especially when a particular option is not the right fit. Clients trust you to provide expert advice and guidance, and being open and honest with them is critical.
The biggest challenge is that everything is never given on a silver plate. Be prepared to ask for what you want and go after it. Women may face extra challenges and biases in the art world. Thus, it's essential to be confident in your abilities and not let preconceived notions hold you back. You must be willing to force your way in and professionally assert yourself while also being collaborative and building solid relationships with your peers and clients. Being adaptive, flexible, and focused on the demands of your clients and having a solid work ethic can put you up for success in any sector.
Astrid Rosetti.
SH: Is art a feasible substitute investment option for conventional avenues such as stocks and bonds?
AR: The art market has long resisted comparisons to the finance industry. But the areas have proved increasingly linked as art prices rise, regulation tightens, and art buyers seek increasingly sophisticated ways to purchase and leverage their works. Art is a unique asset class that offers a variety of benefits, including potential financial returns, the ability to diversify one's portfolio, and the enjoyment of owning and living with beautiful objects.
One major perk of art as an asset is that its value doesn’t rise or decline. The stock market has no direct correlation, making it a good diversification for an investment portfolio. If carefully selected and acquired, art can hold its value over time and may even gain an appreciation of it.
While it can be a valuable asset class and provide potential financial returns, art is not a one-size-fits-all investment and may not be suitable for everyone. It’s not a direct substitute for conventional investment avenues as it doesn’t behave the same way unlike stocks and bonds, which can be traded quickly and with low transaction costs, buying and selling art can be a complex and time-consuming process with significant costs and risks involved, calling both experience and knowledge of the market. It can be subject to a range of factors that are difficult to predict, such as shifting consumer preferences and artist renown.
Therefore, I believe in being honest and transparent with my clients about art investment's potential risks and rewards. I also work closely with them to develop a tailored art strategy aligning with their goals and priorities.
Ultimately, while art can be a valuable addition to an investment portfolio, it's essential to do your due diligence and approach it with a long-term perspective. Investing in art requires a deep understanding and appreciation of the cultural and historical significance of individual artworks and the overall market trends and dynamics. That being said, art should be purchased primarily for its artistic value and personal enjoyment and a focus on building a collection that reflects a client’s taste and values rather than purely from a financial perspective.
Astrid Rosetti at David Zwirner, London.
SH: What methods do you employ to remain current with the latest trends and advancements in the art industry, and which sources do you depend on for information?
AR: Some people perceive the art market as needing more transparency, making it easier to navigate with proper guidance. However, the most valuable sources of information in this sector are usually found through personal relationships and insider trading information. Building and maintaining strong relationships with trusted colleagues, collectors, and industry insiders is crucial to stay aware of the latest trends and developments in the art market.
I always strive to build and maintain trust with my clients and other professionals. Communication is vital, but confidentiality is equally of paramount importance.
Ultimately, staying up-to-date in the art world requires a combination of strategies, including networking and word of mouth, showing up and attending art fairs and exhibitions and keeping a close eye on influential figures of the art world through social media.
SH: Can you share any significant acquisitions you facilitated on a client's behalf? What features made this experience unique, and what was your methodology for undertaking the task?
AR: As a rule of thumb, a "risk-based" approach to determine the appropriate level of due diligence is essential when engaging in art transactions. Quality and provenance are critical to the appreciation of value. Therefore undertaking extensive research into the history of the piece and its previous ownership is essential, as well as consulting with experts in the field to ensure the authenticity of a piece if it needs more relevant information. This requires connections and knowledge and is not even foolproof, as human error or deception is still risky.
A successful acquisition demands a complete approach that considers research, due diligence, and familiarity with the client's preferences and objectives. For any acquisitions, quality and provenance are critical to appreciating value.
SH: Can you expand on your investment philosophy about art and its evolution further?
AR: As I mentioned, I have always adopted a “risk-based” approach to mitigate risk. This involves thoroughly researching the artwork and its history and analysing market trends and comparable sales. Due to its intangible nature and a scarcity of clearly defined value-adding traits, art can be pretty unpredictable.
The art market is highly complex and often includes undisclosed intermediaries adding commissions to private transactions. Providing clients with the information they need to make informed decisions is essential. Therefore, prioritising trust and ethical behaviour are key to guaranteeing their satisfaction. In that sense, I always clarify payment structures and compensation with my clients, ensuring that I work as a fiduciary to my clients and represent their best interests.
Therefore, my approach to art investment is to put my customers' needs first via open communication, thorough preparation, ethical behaviour and diligent investigation.
The salesroom at Sotheby’s New York headquarters during the Macklowe sale in November 2021. Image: Sotheby’s.
SH: From your perspective, what are the critical determinants of success or failure in art investment?
AR: To begin with, there is no cookie-cutter strategy for buying art. I’d say that the best approach combines aesthetic pleasure and financial benefits. Thus the two must be balanced.
While the most prized art pieces tend to retain their value, it is essential to realise that art investing should not be relied upon as a steady source of income. As an illiquid asset with potentially high costs, it is highly volatile and produces no income. One should be aware of all the costs involved, such as the tax implications of buying and selling art, shipping costs, storage, insurance, etc.
While the potential for appreciation in value can be a desirable added factor, it should not be the primary basis for investment decisions. A better strategy is purchasing individual works that appeal to your taste and fit within your financial means. Success or failure in art investment is mainly determined by the artwork's aesthetic appeal, cost, and potential for appreciation in value over time.
Do your homework, consult an expert, and only buy art you love and you think has the potential for appreciation in value over time.
SH: What strategies can mitigate the potential hazards inherent in art investment, such as market volatility or the prospect of counterfeit works?
AR: Investment in art is not without risk, but there are ways to lessen the blow from market fluctuations and the possibility of buying fakes. Before buying an artwork, doing as much background research as possible on the artists, the artwork's provenance, and any previous sales or auction results is essential to avoid costly mistakes. This includes establishing the authenticity of the artwork through provenance research, forensic analysis, and expert opinions to avoid purchasing counterfeit works.
Also, having the correct insurance to protect the collection from damage, theft, or loss may give financial security and peace of mind. Additionally, seeking professional advice from art advisors, art lawyers, and estate planners to be aware of tax implications and following all applicable tax regulations is equally important.
Lastly, be ready to keep your artwork for the long term to limit short-term losses and potentially increase the artwork's value over time. Investing in art is a long-term plan; market volatility is unpredictable, but a steady hand usually pays off. Overall, it requires a cautious approach, thorough research, and professional advice to mitigate potential hazards.
Astrid Rosetti.
SH: What is your perspective on the potential development of the art investment market in the future, with a specific focus on emerging artists and unconventional art genres?
AR: Over the years, The art market has been steadily growing and generated nearly 68 billion U.S. dollars last year, with an increasing number of investors looking to diversify their portfolios with alternative assets such as art.
With the rise of digital platforms and online marketplaces, it has become more accessible to buy art. The online market has resulted in many investors including art purchases in their portfolio diversification strategies. With shifting tastes, there is a growing interest in emerging artists, especially in Asia with MZ collectors, which have become more significant players in the global art market. A third of Christie's new buyers were millennials in 2022. This new generation of collectors drives business and competition.
While art has been collected and appreciated for centuries, investing in art for purely speculative returns is a relatively recent phenomenon despite the idea of art investment becoming more widespread. As the art market becomes more globalised and accessible, we will likely see new creative voices and unorthodox art forms, and collectors willing to take risks on young and emerging artists may be culturally and financially rewarded.
However, it is vital to approach art investment with caution and to remember that the true value of an artwork lies in its cultural significance and artistic merit, not just its potential financial return.