The famous beaded, form-fitting dress in which Marilyn Monroe sang "Happy Birthday" to President John F. Kennedy in May 1962 set a new record for auction prices at Christie's New York sale of Monroe's personal property on Wednesday, October 27.

The silk gauze Jean-Louis garment brought $1.26 million from Bob Schagrin and Peter Siegel of New York's Gotta Have It Collectibles. The previous record for an article of clothing sold at auction was $222,500 paid for a blue gown worn by Princess Diana in 1997.

The price paid for the Monroe dress made jaws drop, but Siegel said the partners had been prepared to spend more. Schagrin added that they considered the dress to be worth $3 million. "We stole it."

The auction, which continues on Thursday, is a sale of Monroe's personal effects that she left to her mentor and acting coach, Lee Strasberg. He died in 1982, and his widow Anna decided to sell the items.

Marilyn's star power is as strong as ever, judging by auction results. Every single lot went for far more than had been anticipated. A 35-diamond "eternity band" given to her by Joe DiMaggio after their 1954 wedding had been estimated to bring $50,000 at most; the ring sold for $772,000. The cowboy boots she wore in her last completed film, The Misfits, brought $85,000 (estimate: $4000 - $8000); her two Golden Globe Awards went for $140,000 and $184,000 each, where estimates put them at $10,000 - $15,000 each. And a white lacquered baby grand piano from Marilyn's New York apartment, estimated at $15,000, brought an amazing $662,500.

Hollywood paid tribute to one of its own at the auction. Several celebrities attended, including Tony Curtis, who remarked that where her copy of the script for their film Some Like It Hot brought over $50,000, his copy would probably bring about $30. Designer Tommy Hilfinger bought the above-mentioned cowboy boots and three pairs of jeans Monroe had worn in another film.

The total for the first 55 lots sold on Wednesday was $5.6 million. The sale also included such prosaic items as household drinking glasses, books and costume jewelry. Even Marilyn's Bible sold for $38,000. Clearly, she is still casting a spell over the audience today, almost forty years after her untimely death in 1962.

To read about the upcoming Collectors Universe One-Of-A-Kind Auctions sale of a baseball autographed by Marilyn Monroe, click here or here.