Art as an investment: advice from those in the know

Imagine being able to turn your passion for art into a real one bespoke luxury service. This is what happens when you enter the world ofArt & Collectibles Strategy Practice Of Goldman Sachs Private Wealth Managementthe team of the famous American investment bank that aims to bridging the gap between art and the world of finance. He is at the helm of this initiative Monica Heslingtonthe professional who embodies the link between two apparently opposite worlds: the creative one of art and the rigorous one of asset management.

Art as a universe of opportunities (and risks)

But what exactly does this Goldman Sachs team do? As Monica Heslington explains, the practice dedicated to art and collectibles was born to respond to a very specific objective: offer customers a holistic service that goes beyond investment management. «Many of our customers are passionate about art and luxury objects such as watches and vintage cars,» says Monica, «but collecting art is not as simple as it might seem. It’s an intricate worldwhere relationships matter as much as invested capital.»

Goldman Sachs Private Wealth Managementwhich also has an office in Milan, deals with clients from all over the world with assets ultra-high-net-worththat is, money, investments, property, and other assets that can be easily converted into cash. Initial accounts can be around $10 million, but the average size is closer to $50 million.

Specifically, the Art & Collectibles Strategy Practice offers consultancy on every aspect of the art world, from private museums to personal collections to art-related philanthropy. «Our task is also to protect our customers from misinformation,” underlines Monica Heslington, Without the support of experts, they risk paying much more for a work than its market value or not recognizing an opportunity.

Monica Heslington: a life between art and finance

Monica hasn’t always been involved in wealth management. His first real passion for art was born during his university studies. «My first contact with art was at university, following a course that started from Mesopotamia and reached Gothic art,» he recalls. This curiosity pushed her to achieve one degree in History of Art and, later, to take one degree in law and explore the world of tax and estate planning, building a unique profile.

With seven years of experience behind us first in an auction house and then in an art gallery, Monica acquired that knowledge of the art world that today allows her to be a bridge between two different universes. “I know the dynamics of the art world and I know how to interpret the financial and wealth management mechanisms,” he says. This dual training allows her to combine the rigor of economic analysis with the creativity of the artistic world, helping clients manage their passion for art in a strategic and personalized way.

A 360 degree consultancy, for every type of collector

THE’Art & Collectibles Strategy Practice it not only offers purchasing suggestions, but develops truly tailor-made plans. «Every collector is different: there are those who collect for passion, those who want to do philanthropy and those who consider art as an investment,» explains Monica. Depending on the reasons, a specific approach is adopted: from the choice of works to that of art advisors, who are part of an external and extensive network of Goldman Sachs, carefully selected based on rigorous criteria.

One of the concrete examples that Monica Heslington loves to tell concerns an entrepreneur who wanted to create a private museum in his hometown in the United States. «I put him in contact with the right art advisors, capable of build a collection that reflected its history and values,” explains. «In this way, we designed a strategy that encompassed every aspect, from the selection of works to the management of timing and structure».

The Goldman Sachs headquarters in New York in the United States.

Sean Pavone

A network of relationships at the service of art

Art is also made of relationships and contacts, crucial elements for making the right choices. «The art world is a microcosm where everyone knows each other,” says Monica, “and it’s easy to discover the reputation of an art advisor or gallery owner.” Knowing the right people is important not only to obtain the best works, but also to avoid common mistakes, especially for those approaching this sector for the first time.

And for those who want to approach art without fear, Monica and her team also offer personalized training programs. «If a client wants to know the market better before making a major purchase, I can organize visits to auction houses, or meetings with gallery owners, to allow them to understand every aspect,» adds Monica. This is the true essence ofArt & Collectibles: offer a complete experiencewhich goes beyond the simple purchase of a work.

Trends and new challenges for the art world

But how is the art market evolving? «After the wave of buying during the pandemic, we are witnessing a correction phase» observes Monica Heslington. Wars, economic instability and high interest rates have slowed the market, but this historical context does not necessarily pose a threat to the art market. «Collectors today can have more time to research and calmly evaluate the pieces they really want.»

Among the new trends, there is the growing interest in digital artalthough the NFT frenzy now seems over. “Some digital artists use AI in incredibly creative ways,” explains Monica. «This type of art will not disappear; indeed, it will conquer a share of the market, albeit a small one.”

And for those who think that art is still an elitist universe, Goldman Sachs’ practice proves the opposite. «Art today speaks new languagesclose to the sensitivity of the new generations”, he explains, “Young collectors, for example, are attracted to emerging artists and digital works, far from classic icons but close to their imagination”.

An inspiration to approach art

Monica Heslington’s experience can inspire anyone who wants to approach the world of art. His life, intertwined between finance and creativity, teaches us that it is not necessary to be an expert or have millionaire assets to love art. «Curiosity and the desire to discover are enough», he says, «because art is above all this: explore new worlds and live unforgettable experiences».

In an ever-changing world, theArt & Collectibles Strategy Practice by Goldman Sachs presents itself as a safe and competent guide for those who wish to immerse themselves in the artistic universe. And who knows, perhaps by reading these lines, some readers will find the inspiration to cultivate that passion for art that they have never had the courage to fully explore.