The surge in wealth has prompted luxury retailers like Bulgari to reach for the stratosphere. Known for its already pricey jewelry, Bulgari is now designing even more expensive pieces, and people are buying.

Items such as an $8 million diamond necklace are on display at Bulgari's flagship U.S. store on Fifth Avenue in New York City. Also on display is a pair of sapphire and diamond earrings carrying a price tag of $2 million — that's $1 million for each ear.

Who's Buying?

It's not only the richest of the rich who are indulging in luxury goods these days. More and more Americans of somewhat modest means are pinching pennies in order to get a taste of the finer things in life.

"Many of my clients want certain high-end designer items, regardless of cost, even if they have to skimp a bit on other things," said Claudia Kaye, a personal shopper and wardrobe stylist. "These items are now in demand by everyone, not just affluent people," she added.

The key, says Kaye, is knowing how to combine one or two luxury items with everyday attire.

"I think people are learning that if they mix luxury items with midprice ones they actually get more for their money in the long run," said Kaye.

Treating yourself to an $800 handbag can go a long way. It's an investment of sorts if you think about it.

Buy an easily recognizable designer handbag, like Louis Vuitton's signature LV design or Fendi's FF pattern. A classic bag will last a long time and spread out over 20 years, that bag only costs $40 a year, or $3.33 a month. Pair it with an inexpensive dress from a bargain retailer like Forever 21 or H&M and you have instant style.

"It's not just for the billionaires and the extreme net worth," said fashion industry insider Patti Pao.

Pao closely examines luxury retail trends for her New York consulting firm, the Pao Principle, and has noticed a growing trend in the consumption of luxury goods — fashion is becoming more accessible to the masses.

"Everyone from the teen in the mall to the newly minted hedge fund billionaires is buying," said Pao.

Kaye agrees and says that her newest clients' interest in luxury goods stems from a fascination with Hollywood.

"People see high-ticket clothes and accessories photographed on celebrities and suddenly they become 'must have' items," said Kaye. "Even teenagers feel the need for designer jeans and bags since many of the most photographed celebrities are teens themselves."

As teens trade up and new classes of consumers emerge, luxury retailers are responding quickly — adapting strategies to cater to their new clientele.

Emerging Markets

Taking notice of the developing trend, high-end stores are appealing to a new consumer base by expanding stores to areas outside of the typical U.S. luxury markets in New York and Los Angeles. Bulgari's CEO Trapani says he knows where to access the newest market.

"We're investing our money in other cities like Phoenix or Atlanta," said Trapani. "Cities that up until two years ago weren't interesting to us."

The United States isn't the only country with a changing luxury customer base. Bulgari is now using the small market plan it developed in the United States as a model for business across the globe.

"This is a process that goes on not only in the U.S. but also in the rest of the world," said Trapani. "You can do a good luxury business in many different countries, many different cities."

Luxury retailers aren't the only ones becoming increasingly familiar with uber-expensive jewelry and other luxury goods. Stylists and personal shoppers like Kaye are the ones behind most of the multimillion-dollar deals because they're the people clients entrust to pick the right piece.