BSTA Weekly Report – 22th November 2025
The most important news selected by the BSTA editorial team for this week.
Authors:
• Costanza Franzinelli Socini Guelfi.
• Matteo Loggia.
• Guia Roberta Moretti.
• Alice Oliveri del Castillo.
• Marilyn Shi.
America’s Auction: A Golden Dream That Lost Its Shine
The much-anticipated auction of “America” — Maurizio Cattelan’s notorious golden toilet — has come to an end, closing a chapter that fascinated both the art and financial worlds. Announced just a few weeks ago, the sale was expected to draw record bids. Yet, despite the hype, the results have proven underwhelming, signaling that even the most provocative art can falter when expectations are set too high.
When Sotheby’s placed the 18-karat solid gold toilet on the block, the art market was abuzz. Crafted as both a satire of excess and a commentary on wealth, “America” had previously made headlines during its installation at Blenheim Palace — and its subsequent theft. Collectors and curators alike viewed the piece as a potential “trophy asset,” a perfect storm of concept, controversy, and craftsmanship.
However, as Corriere della Sera reported, the final hammer price fell short of the most optimistic projections. While early estimates hovered in the tens of millions, the winning bid amounted to a sum closer to its material value in gold. For many observers, this was not just a commercial disappointment but a reflection of shifting tastes in the high-end art market — where irony alone no longer guarantees value.
Art critics at ArtsLife were even more direct, describing the result as a “flop.” Despite its cultural notoriety and the artist’s global prestige, “America” sold “soltanto a peso d’oro” — only for the price of its gold. The result underscores a crucial reality in today’s art-as-investment landscape: provocation without permanence may not sustain collector confidence.
In the end, “America” remains an emblem of Cattelan’s genius — a blend of satire, spectacle, and social critique. But as an asset, it serves as a cautionary tale: not every masterpiece forged from gold turns into a trophy.
Source: ArtsLife (2025)
The 12.5% Solution: Can Italy’s Gold Levy Balance the Books?
Source: KitCo News (17/11/2025)
Italy has always had a special relationship with gold. From wedding dowries to coins kept at home, Italians have long viewed the metal as a safe, tangible store of value during uncertain times. Now that cultural habits have caught the government’s attention. Facing a widening deficit and pressure from Brussels to raise revenue, Rome is considering a one-time 12.5%voluntary tax on undeclared private gold holdings, hoping to turn dormant wealth into fiscal relief. The measure has reignited an old question: is it a pragmatic fiscal policy or a reward for those who avoided declaring their assets?
Under current law, owning gold is legal, but undeclared bullion or coins held outside official channels can become a problem when sold or discovered. In such cases, the government may impose a 52% tax on the undeclared value, effectively punishing those who have kept their holdings hidden. This steep rate, combined with limited enforcement, has encouraged secrecy. Italians are estimated to hold thousands of tonnes of private gold, worth over €120 billion, making it both a cultural tradition and an untapped fiscal resource.
The new proposal would allow individuals to declare previously undisclosed gold in exchange for paying a 12.5% tax on its market value. Those who participate would avoid the 52% penalty and potential legal consequences. The plan mirrors earlier voluntary disclosure schemes that helped repatriate offshore assets. Officials argue that it could bring billions in new revenue while promoting transparency and simplifying enforcement. They present it not as an amnesty but as a realistic step to integrate hidden wealth into the formal economy.
Economically, the measure could provide a short-term boost and help Italy stay within EU deficit limits without raising income taxes. Even modest participation could yield significant returns if the government manages to convince holders to come forward. For citizens, it offers an affordable path to legitimacy. Yet some analysts warn of side effects, such as a temporary dip in domestic gold prices if people sell to pay the tax. The success of the plan ultimately depends on public trust and on whether citizens believe this is truly a one-time opportunity rather than the start of tighter surveillance.
Politically, the 12.5% gold tax has stirred a familiar Italian debate between fiscal necessity and moral principle. Supporters describe it as a pragmatic response to reality, arguing that Italians have always held gold privately and that this plan offers a way to bring it into the open. Critics see it as another ‘condono’, a recurring pattern of “forgive and collect” that weakens respect for the law. Others point out that not all undisclosed gold represents wrongdoing, since much of it may have been purchased decades ago with money that was already taxed, even as far back as the postwar years, but never declared under modern rules. For these owners, the new levy feels less like an amnesty and more like a second round of taxation disguised as reform.
In the end, the 12.5% gold tax may be both a fiscal experiment and a moral test. If handled carefully, it could convert private wealth into public benefit and strengthen financial transparency. But if seen as another loophole for the privileged, it risks eroding trust and reinforcing the very habits it aims to correct. Whether this measure restores confidence or weakens it will depend on how fair it’s perceived by the public, and on whether it will truly end Italy’s long cycle of fiscal pardons.
Kering’s Next Move: What Future Awaits the Palazzo on Via Montenapoleone?
In recent days, the fashion world has been abuzz with speculation about Kering’s new real estate and strategic direction under the leadership of CEO Luca de Meo. His latest moves have drawn attention not only for their potential to reshape the luxury group’s portfolio but also for their possible implications for one of Milan’s most prestigious properties: the historic palazzo on Via Montenapoleone, long a symbol of luxury retail and trophy real estate in Europe’s fashion capital.
According to Milano Finanza, de Meo is reportedly studying the creation of a new division dedicated to investing in emerging brands — a move that would diversify Kering’s exposure beyond its flagship labels like Gucci, Saint Laurent, and Bottega Veneta. This strategic pivot could free up capital for other operations — including high-profile real estate maneuvers that reflect Kering’s long-term vision of blending fashion heritage with asset value growth.
Meanwhile, reports from Corriere della Sera remind us that the building on Via Montenapoleone, once at the center of fierce competition among luxury groups and international investors, continues to be a point of fascination. Its record valuation and symbolic location make it a quintessential trophy asset — one that may yet see a new chapter amid Kering’s evolving investment strategy.
The question, then, is not whether Kering will move, but how boldly. Will the group retain the Milanese icon as a strategic anchor or choose to capitalize on its immense market value to fund the next phase of de Meo’s “House of Dreams” project, as recently reported by CNBC?
Whatever the outcome, one thing is certain: Kering’s strategy now extends beyond luxury fashion — it’s about controlling the physical symbols of prestige that define the industry itself.
The Waldorf Astoria’s Grand Reopening
Source: New York YIMBY
After eight years and six billion dollars later, the Waldorf Astoria has reopened! The 1931 vintage hotel now features 5,400 new windows, custom elevator systems, and the restoration of 1930s art.
“I want to bring this Grande Dame back to life and have it take its rightful place back as the most iconic hotel in the world,” said Hilton President and CEO Chris Nassetta. This description is not an exaggeration—it was the first hotel with a private bath in every guest room, the first to introduce 24-hour room service, and hosted every U.S. president from Hoover to Obama. “This has taken longer than anybody ever expected…we needed to have the artisans from around the world that we needed in this hotel, but most importantly, we wanted to get it right.”
Architects from Skidmore Owings & Merrill renovated and completed a partial hotel-to-residential conversion. Walls were torn down and thousands of windows were removed. The previous 1,400 rooms were also reorganized into 375 hotel rooms and 372 private residences. The interiors are by designer Pierre-Yves Rochon; the smallest room is twice the size of the original hotel rooms. The residences are located above the 15th floor, ranging from studios at $1,875,000 to four-bedroom condos with large private terraces and penthouses.
The “Wheel of Life” marble floor mosaic, made from 148,000 pieces of stone, by the French artist Louis Rigal, was fully cleaned. The iconic Waldorf clock, commissioned by Queen Victoria for the 1893 World’s Columbian Exposition and a feature of the hotel since its first days on 34th Street, was also restored. For about a year, a metalsmith, a clockmaker and four conservators worked to restore the clock. They cleaned, stripped, rebuilt and repaired, re-gilding and re-silvering the mechanisms before reassembling it.
The renovated Waldorf Astoria welcomed its first hotel guests on September 1, 2025. The reopening also included the 43,000-square-foot event space, which includes the legendary Grand Ballroom, as well as the Basildon, Jade, and Astor Rooms. The Guerlain Wellness Spa and Silver Corridor also opened.
Room rates start at $1,500 a night, up to $50,000 a night for The Waldorf Astoria Suite, a 4,500-square-foot penthouse suite. “We wanted to become a true luxury hotel again,” said the hotel’s managing director, Luigi Romaniello. “Because, let’s face it, it had become just another very big hotel…But now that there are fewer rooms, we can offer a much more elegant, elevated experience.”
Ticking Tariffs: How Trump’s Watch on Switzerland Shook the World of Luxury Horology
In August 2025, President Donald Trump announced a sweeping new tariff package targeting Switzerland, a country long regarded as politically neutral and economically indispensable. Among the hardest hit sectors was the Swiss watch industry, a cornerstone of national exports and a pillar of global luxury. The measure introduced import duties of up to 39 % on Swiss-made goods entering the United States, immediately rattling both markets and manufacturers.
The Impact on the Watch Industry
For an industry exporting over CHF 4 billion in watches annually to the U.S., the new tariffs struck at its most profitable artery. Analysts estimated that if fully passed on to consumers, prices for flagship models could soar between 20 % and 30 %, pushing a $10 000 Rolex to over $13 000 overnight. Luxury groups including Rolex, Patek Philippe, Cartier, and Omega reacted swiftly, freezing certain shipments, advancing inventories before customs deadlines, and signaling selective price adjustments for Q4 2025.
The move arrived at a precarious moment: the global watch market was already cooling after years of post-pandemic exuberance. Sales in China and Europe had softened, and U.S. demand, traditionally resilient, now faced the risk of tariff-driven fatigue.
The White House Delegation
Within weeks, a delegation of Swiss executives representing major horology houses traveled to Washington D.C. to meet with administration officials and advocate for relief. According to reports, discussions centered on a phased reduction of the tariff from 39 % to 15 %, mirroring EU-aligned trade rates, alongside a memorandum protecting the “Swiss Made” designation from future policy shocks.
The delegation, led informally by senior figures from Rolex and Swatch Group, emphasized the importance of the U.S. as both a consumer and symbolic market for the global luxury ecosystem.
Their case found a partial opening: Trump’s advisers reportedly signaled willingness to consider a time-limited rollback of tariffs in exchange for increased Swiss investment in U.S. manufacturing and technology sectors, a potential quid pro quo that could restore transatlantic equilibrium.
What Brands Could Gain and What Comes Next
If negotiations succeed, Swiss brands may preserve pricing parity across global markets, avoiding a perception of inflated U.S. prices that could undermine brand equity. Stabilizing tariffs would also allow them to safeguard U.S. retail networks, where flagship boutiques in New York, Miami, and Los Angeles serve as crucial showcases for global clientele.
Still, risks remain. Even a moderated 15 % tariff would pressure operating margins, forcing some brands to absorb costs or accelerate local assembly initiatives to qualify for lower duties. Consumer behavior may also shift, driving affluent buyers toward the secondary market, already buoyed by scarcity and speculation.
