Over the past two years, colored diamonds have caused sensations in auction rooms around the globe, as several rare stones fetched record-breaking prices. These astounding transactions include the recent Christie’s sale in Hong Kong of a 5-carat vivid pink diamond that went for $10.8 million—or $2.16 million per carat. "There is a very limited supply of fine colored rough diamonds," says Rahul Kadakia, senior vice president and head of jewelry at Christie’s New York, who predicts that, because large-size colored stones are rarely discovered in the mines anymore, prices will continue to rise. These brightly hued stones, when they do come to market, generally tend to be smaller than white ones, so diamond houses are challenged to incorporate them into finished pieces that enhance, rather than diminish, their extraordinary color. The recently unveiled designs depicted here and on the following pages offer a taste of the many imaginative ways that distinctive jewelers—De Beers and Leviev, among others—have chosen to showcase the striking shades of these whimsical stones.