For Some Diamonds, $4 Million a Carat Is the New Normal

You won't believe how much some diamonds are selling for. 'Colored diamonds used to make a $1 million per carat, which was a great price and today, $4 million a carat is the new normal,' said Rahul Kadakia, head of jewelry at Christie's International. 'We've seen prices for white diamonds at over $250,000 per carat, which is a price that's five times higher than ten of fifteen years ago.' On May 18, Christie's is set to auction a rare blue diamond in Geneva, Switzerland that could fetch more than $45 million. 'At the highest end, there's a great shortage of fine gem stones, fine jewelry, fine colored gem stones and there's big group of buyers out there who want to buy the very best which is what's driving these prices.' While Kadakia said the demand for these stones changes based on different economic cycles, it's consistently strong among buyers in certain areas. TheStreet's Scott Gamm reports from Wall Street.