The Man Who Crafted the Blueprint for the Art Market

You can find this week’s TL;DR here.

Key Lessons:

• Have better information than your competition.

• Raise the probability of hitting your target.

• Solve practical issues for your clients.

• Know every detail about your client.

• Espionage isn’t out of the question.

• Get in the room with your target.

• Control your brand positioning.

• Leave nothing to chance.

• Have a monopoly.

• Engineer scarcity.

• Be persuasive.

Last week on Methods of Prosperity

In the late 1970s, Larry Gagosian contacted photographer Ralph Gibson for a show. Which led to Gagosian’s pivotal introduction to legendary dealer Leo Castelli.

Castelli was influential in the postwar American art scene. He mentored Gagosian. Leo granted Larry access to prominent artists. Artists including Lichtenstein, Jasper Johns, Andy Warhol and Jean Michel Basquiat.

Gagosian’s career flourished. He moved to New York in the mid-1980s, opening a significant gallery in Chelsea. He became known for his aggressive secondary market tactics.

Gagosian transformed the art gallery model into a global network. He commands more exhibition space than many museums.

Gagosian generates over a billion dollars in annual revenue. His innovative strategies redefined art sales.

He could be the most influential art dealer in history. But there’s someone who came before Gagosian and Castelli. It was a British art dealer who dominated the early 20th-century art market.

Part 99. Joseph Duveen (1869–1939)

Today, the top art dealer is Larry Gagosian. He’s built an empire in an unregulated market. Leo Castelli was his sherpa, guiding him towards high altitudes of wealthy collectors. Wealthy art collectors move millions of dollars worth of paintings. Larry is their go-between. Zwirner, Houser & Wirth, and Pace Gallery are in the realm of the top echelon of galleries with Gagosian. They owe their standing to Joseph Duveen (later Baron Duveen of Millbank). He was one of the most influential art dealers of the late 19th and early 20th centuries. Duveen had a tremendous impact on the art world. We can also thank him for his formation of major American collections.

From 1904 to 1940, Duveen monopolized America’s millionaire art collecting market. But there was one collector who almost got away. It was the industrialist Andrew Mellon. Mellon was a stiff, taciturn man. The stories he had heard about the congenial, talkative Duveen rubbed him the wrong way. Determined, Duveen would make Mellon a client if it was the last thing he did. Duveen’s friends said this was an impossible dream. Mellon had made it clear he had no desire to meet Duveen. Yet Duveen told his doubting friends, “Not only will Mellon buy from me, but he will buy only from me”. 

For several years he tracked his prey, learning the man’s habits, tastes, phobias. Duveen put several of Mellon’s staff on his own payroll, unbeknownst to Mellon. His motive? To glean valuable information from them about Mellon. By the time he moved into action, he knew Mellon about as well as Mellon’s wife did. 

In 1921, Mellon was visiting London. He was staying in a palatial suite on the third floor of Claridge's hotel. Duveen booked himself into the suite below Mellon’s. On the second floor, he had arranged for his valet to befriend Mellon's valet. On the fateful day he had chosen to make his move, Mellon's valet told Duveen’s valet. Who told Duveen that he had only helped Mellon on with his overcoat moments ago. The industrialist was making his way down the corridor to ring for the lift. So Duveen’s valet helped Duveen throw on his own overcoat. Seconds later, Duveen entered the lift. Behold, there was Mellon. 

“How do you do, Mr. Mellon,” said Duveen, introducing himself. “I am on my way to the National Gallery to look at some pictures.”

Guess where Mellon was on his way to. Exactly the same destination. Uncanny, isn’t it?

So Duveen was able to accompany his prey to the one location that would ensure his success. He knew Mellon's taste inside and out. While the two men wandered through the museum, he dazzled the magnate with his knowledge. It seemed remarkable to Mellon how similar Duveen’s taste was to his. Duveen impressed Mellon. This was not the Duveen he had expected. The man was charming and agreeable, and had exquisite taste. 

When they returned to New York, Mellon visited Duveen’s exclusive gallery. Mellon became enamored with the collection. Everything seemed to be the kind of work he wanted to collect. For the rest of his life he was Duveen’s best and most generous client. 

A man as ambitious and competitive as Joseph Duveen left nothing to chance. He didn’t only hope to be able to charm this or that client. That would be too risky. Hope is not a strategy.

Arm yourself with a little knowledge and your aim improves. Raise the probability of hitting your target. No matter what the probability of hitting your target already is, you can still improve your aim. You can almost always improve your odds by doing things that will give you more information.

Mellon was the most spectacular of Duveen’s catches, but he wasn’t the only one Duveen spied on. Other members of his client’s household staff were on his own payroll. He would gain constant access to valuable information. He knew of their comings and goings, changes in taste, and other details. This secret information would put him a step ahead.

A rival of Duveen wanted to make Henry Frick a client. He noticed that whenever he visited this wealthy New Yorker, Duveen was there before him, as if he had a sixth sense. To other dealers Duveen seemed to be everywhere and to know everything before they did. His powers discouraged and disheartened them. Until many gave up going after the wealthy clients who could make a dealer rich. That’s how Duveen outmaneuvered his competition. He had eyes everywhere. He knew everything about his clients. So he could anticipate their desires. He cultivated ultra-wealthy patrons. He offered tailored services. Which included interior design advice and buy-back guarantees to ensure price stability.

Duveen was born in 1869 to a Dutch family that had emigrated to Britain. Duveen joined his father’s antiques business. He would transform it into an international art dealership of unprecedented scale. He rose to prominence during America’s Gilded Age. Wealthy industrialists in America had new money. Henry Clay Frick, Andrew Mellon, John D. Rockefeller, and J.P. Morgan. They were eager to establish themselves as cultured figures through art collection.

Duveen’s genius lay in recognizing a perfect market opportunity. Europe had centuries of masterpieces but needed money. While America had tremendous wealth but lacked cultural treasures. He became the premier middleman in this transatlantic exchange. He convinced European aristocrats to sell their family heirlooms. He persuaded American millionaires. Owning Old Master paintings became essential to their social standing.

His business practices were often controversial. He used aggressive marketing tactics. He paid enormous prices to secure exclusive rights to collections. Legend has it that he wasn’t above manipulating attributions. He may have doctored restoration work to increase a painting’s value. He worked with art historian Bernard Berenson. Berenson provided expert opinions on Italian Renaissance works. Often for a percentage of Duveen’s profits. Duveen placed doubt on his competitors, questioning their authenticity claims. For example, he once told Henry Clay Frick his prior purchases were fakes. He monopolized supply through strategic buybacks.

Many of America’s most prestigious museums contain works that passed through Duveen’s hands. This includes the Metropolitan Museum of Art, the Frick Collection. It also includes the National Gallery of Art.

Duveen played a pivotal role in the establishment of the National Gallery of Art (NGA). It was through his relationship with financier Andrew Mellon. Duveen supplied Mellon with masterpieces from Europe. He shaped his taste for Old Masters. After their orchestrated introduction, their relationship grew into a partnership. Duveen sold Mellon key works. He also advised him on building a world-class collection.

Duveen’s influence extended beyond assembling the collection. He persuaded Mellon that the new museum should rival Europe’s finest. He advocated for a grand architectural setting. He influenced the inclusion of dedicated sculpture galleries. Often stocked with works Duveen himself sourced. His powers of persuasion were significant. Duveen insisted on the marble grandeur of the NGA. The splendor and design of which are, in part, attributed to his vision.

Duveen’s business acumen helped solve practical issues for his clients. Collectors like Mellon donated art to the NGA. By doing so, they could avoid taxes. Prestigious collectors could clear wall space for new acquisitions. They maintained high art prices by reducing the number of masterpieces on the market. As a result, many works Duveen handled became the core of the NGA’s collection. Over 2,400 objects in the museum have passed through his hands.

The queen knighted him in 1919. He became a baron in 1933. Which reflects his significance in British society. Duveen died in 1939. His legacy persists in the immense transfer of European art to American collections. These famous collections shaped the cultural landscape of the United States.

In conclusion, Joseph Duveen dominated the early 20th-century art market. He connected European masterpieces with America’s new wealthy industrialists. Europe had an abundance of art and America had an abundance of post-industrial wealth. Duveen pioneered art market branding. He positioned his name as synonymous with quality and exclusivity. Collectors prided themselves on owning a “Duveen”. His influence persists today. Consider the art market’s emphasis on provenance, branding, and high-stakes private sales. That comes from Duveen. He had a unique blend of showmanship, market manipulation, and connoisseurship. It made him the most powerful art dealer of his era.

I like you,

– Sean Allen Fenn

PS: You don’t have to follow me on 𝕏, but you can partner with me to bring about serious advancement for each other.

You can now buy the collectors edition of Methods of Prosperity newsletter number 62. It’s available to collect as of May 2, 2025. If you’re so inclined you can permanently own it!

Methods of Prosperity newsletter is intended to share ideas and build relationships. To become a billionaire, one must first be conditioned to think like a billionaire. To that agenda, this newsletter studies remarkable people in history who demonstrated what to do (and what not to do). Let me know how I can help you out. For more information about the author, please visit seanallenfenn.com/faq.

Do you know about my livestream podcast? It’s called Hidden Secrets Revealed Live (HSRL), and I record it live on 𝕏 every Wednesday.