ajc.com Holiday Guide

The holidays may be a time to indulge, but this is ridiculous.

In less than eight minutes, Saks Fifth Avenue sold all 20 special-edition 2007 Mercedes-Benz CL600s in its gift catalog for a cool $160,000 each. Neiman Marcus' 50 limited-edition BMW M6 convertibles sold out in just 92 seconds. The $139,000 price included a four-day trip to the company's factory in Munich.

Clearly, some folks have been very, very good this year.

Such pricey indulgences are fueling a $150 billion global luxury market, one that's growing at 8 percent annually, said Jim Hurley, a senior research anaylst for Telsey Advisory Group in New York. The United States accounts for about 25 percent of those sales.

Of course, "anything that's discretionary is a luxury item," Hurley said. "It might be a bowl of Häagen-Dazs rather than a bowl of Breyers ice cream, something from Coach instead of Louis Vuitton."

For the wealthy (think eight-figure salary), that distinction could be the difference between a $3,295 python tote from Yves Saint Laurent and a $148,000 Hermès handbag. Increasingly, there's also a story behind gifts that offer more bang for the megabuck.

"A Victoria Secret bra covered in diamonds is a beautiful piece of lingerie. But, a true connoisseur wants to go to the mines, choose the diamonds, then design the item," said Carol Brodie, chief luxury officer of Robb Report magazine. "It's creating your own personal preference."

High-end jewelry retailer Tiffany & Co. offers just such an opportunity. For a cool $1 million, shoppers can select their own 24.3-carat rough diamond from an undisclosed mine and then travel via private jet to the company's diamond-cutting facility in Antwerp, Belgium. The experience ends in New York, where chief gemologist Melvyn Kirtley will help create the perfect setting and mounting for the bauble.

"A stone of this size can produce as many as three stones," said Kirtley. (Consider it a three-for-one deal.) And, as if there were any question, first-class accommodations are included throughout the trip.

At Tourneau in Lenox Square, watches from such labels as Cartier, Breitling, Omega and Tag Heuer are selling well, with prices ranging from $2,500 to $10,000.

"A customer can buy a fashion-forward watch and not feel guilty," said store managaer Leigh Moyer. "After all, everyone needs one."

In addition to jewelry, Brodie said this season's hot luxury items include one-of-a-kind cars, watches, yachts, limited-edition bags and electronics. High-end jewelry and clothing — often owned by a famous person — are sought after as well.

When it comes to shopping, the well-to-do also take the philanthropic route by making charitable donations on behalf of friends.

"I try to do my charitable best," said retailer Jeffrey Kalinsky, who owns Jeffrey stores in Atlanta and New York and supports AIDS and breast cancer-related causes. "I have been very fortunate and can give money to charities."

But Kalinsky also buys presents. His father, Morris, will get a new charcoal gray Prada suit. The gift Kalinsky selected for his mother, Sybil, also will be pretty special, but it's a secret.

Kalinsky is buying himself a gift as well — an 11-day trip to South America.

"My mom told me, 'always buy yourself a gift,' " he said. "I always follow my mother's orders."