One of the most significant developments in the art market after 1900 was the role played by American collectors and the dealers who supplied them with works of art. Of the latter, the most phenomenally successful and flamboyant was Joseph Duveen, Baron Muldeen of Millbank—perhaps the only art dealer ever to be ennobled. His influence was so great that the period between about 1900 and about 1940, during which great American private collections were assembled by Andrew W. Mellon, Henry E. Huntington, Henry Clay Frick, S.H. Kress, John Pierpont Morgan, and others, has often been called “the age of Duveen.”

Despite Duveen’s success with other clients, one of the first great American collectors, Isabella Stewart Gardner, bought her pictures mainly through the agency of the eminent London firm Colnaghi (established 1760). Gardner also relied on the advice of the great American connoisseur Bernard Berenson, who later worked secretly for Duveen.

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The Blue Boy by Thomas Gainsborough, c. 1770; in the Huntingdon Library, San Marino, California, U.S.

Art Collection 2/Alamy

Society portraiture had enormous fashionable appeal to American collectors, perhaps because of its aura of aristocracy. Most highly sought were Sir Anthony Van Dyck and the great 18th- and early 19th-century British masters such as Sir Joshua Reynolds, George Romney, Thomas Gainsborough, and Sir Thomas Lawrence. Duveen showed extraordinary skill in exploiting this taste. His most spectacular coup occurred in 1921 with the sale to Henry Huntington of Gainsborough’s The Blue Boy for £182,200 (approximately $700,000 at the time)—a price that at the time made it the second most expensive painting in the world, after Leonardo da Vinci’s Madonna and Child.

The great art boom of the 1920s came to an end with the 1929 stock market crash, though one of the greatest American art deals of the 20th century took place against the background of the Great Depression. This occurred in 1931, when a consortium of dealers including Colnaghi of London, Knoedler’s in New York, and Matthieson in Berlin—but not, significantly, Duveen—sold a group of masterpieces to Andrew Mellon to form the foundation collection of the National Gallery of Art in Washington, D.C. The 1930s and ’40s also saw an explosion of American museums, and the first American courses in museum studies were offered by Paul Sachs and Edward Waldo Forbes of Harvard University. In the period following World War II, American museums (and above all the Getty Museum) largely surpassed private collectors as patrons of the art market.

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Alfred Stieglitz, Photographer, 1934, photograph by Imogen Cunningham.

Imogen Cunningham Trust. www.imogencunningham.com

At the beginning of the 20th century, most American collectors were interested in old art. This trend began to change following the 1913 Armory Show in New York City and a decision by the U.S. Congress to lift the 15 percent duty then payable on works of art less than 20 years old. The photographer Alfred Stieglitz, who promoted the work of Constantin Brancusi and Juan Gris at 291, his Manhattan gallery, was also influential in broadening American collectors’ tastes to include contemporary art.

The continued importance of Paris as an art center is demonstrated by the careers of Ambroise Vollard, Félix Fénéon, and Daniel-Henry Kahnweiler—dealers in contemporary genres, including Post-Impressionism, Symbolism, and Cubism.

The 1920s saw the development of the Left Bank of the Seine as a center for smaller, more adventurous galleries. One pioneer was the dealer Paul Guillaume. An important promoter of African sculpture, he organized the Art Nègre exhibition in 1919 at the Galerie Devambez. He also helped to form the Barnes collection of Impressionist pictures originally located in Merion, Pennsylvania, outside Philadephia.

Paris remained a crucial market for secondary art throughout the interwar years; the leading dealers were Nathan Wildenstein, the father-and-son partnership of Ernest and René Gimpel, and Jacques Seligmann. For Wildenstein and the Gimpels, the core business was initially in 18th-century French fine art, though both firms (which sustained a partnership, E. Gimpel and Wildenstein, in New York from 1902 to 1919) later became important purveyors of Impressionist works. René Gimpel’s Diary of an Art Dealer (1966) provides a first-person account of the heady art scene of the interwar period. Seligmann was, until his death in 1923, the leading dealer in French 18th-century decorative arts.

In the early 20th century the art market was largely dealer-led. The balance of power began to shift toward auction houses, most notably Sotheby’s and Christie’s, just before the First World War. Until that time Sotheby’s had largely confined itself to book auctioneering; there was an unwritten agreement that if a literary property came on the market it went to Sotheby’s, while pictures and sculpture went to Christie’s.

Sotheby’s changed hands in 1909, and in 1913 this agreement was broken by Montagu Barlow, the new lead partner in the firm. Barlow sold a Frans Hals for a record auction price, introduced the use of new technologies such as telephones and typewriters, and in 1917 moved the firm to New Bond Street. Christie’s, with its superior contacts among the aristocracy, dominated the Old Master market through the early 1920s, but Barlow hired Finnish art historian Tancred Borenius to boost the firm’s expertise, an innovation that greatly increased Sotheby’s turnover in paintings and drawings.