Diamonds show no sign of losing their appeal in the luxury goods market. Christies sold a rare red purple diamond for a heart stopping $2,600,000. It's a record for a ring. The octagon shaped stone is 2.2 carats and is the largest red diamond to be sold at auction. English jeweler Laurence Graff who has a insatiable appetite for the worlds largest jewels bought the ring.

Implications - Despite the recent downturn of the economy, there is still a strong market for ultra-luxury items. Companies and brands that seek to market to the affluent would be wise to invest in extravagant products that skew toward the wealthy. By marketing directly to this segment of the population, companies instantly associate themselves with high-spending consumers.