Born in 1898 in New York, Peggy was the daughter of Benjamin Guggenheim, a mining entrepreneur, and Florette Seligman, a descendant of a prominent banking family.
Growing up in New York, Peggy travelled in Europe with her first husband Laurence Vail, by whom she would have two children: Sinbad and the future painter Pegeen. One of the destinations of her travels was Paris, where Peggy came into contact with numerous artists, including Brancusi and Duchamp.
In 1938, Peggy opened her first art gallery in London, exhibiting works by Jean Cocteau and later a sol
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