How do art auctions really work?

The art world has never been more global or more accessible. The best estimates put annual art sales at between 60 and 70 billion dollars a year , and transactions happen in galleries, at art fairs, through advisory services, and online. Yet, even highly experienced art lovers find auctions -- which generate about 20% of annual sales -- intimidating. It's also unquestionably one of the most exciting ways to get what you want at a market price.