A huge yellow diamond known as the "Sun-Drop Diamond" has sold for 11.28 million Swiss francs (£7.8 million), a world record for a yellow diamond, at auction on Tuesday night, Sotheby's said.

Among the many reasons Anglo American gave for its willingness to pay $5bn for a majority stake in De Beers, the world’s biggest seller of diamonds, was the drastic shift it has helped bring about in Chinese wedding rituals.

Demand for diamonds is up for two reasons: firstly, they are one of the most reliable investments during financial disturbances and secondly, the middle class is developing in India and China, which has started buying diamond jewellery. Prices for diamonds will likely keep rising in the next few months.

One of the world’s most exclusive jewellery sellers says it is prepared to cut more deals with diamond mines in exchange for preferential access to the precious stones, reports the FT. 

De Beers reports record sales during the first half of 2011 as rough diamond prices grow by about 35 percent.