Diffractive pigment flakes are selectively aligned to form an image. In one embodiment, flakes having a magnetic layer are shaped to facilitate alignment in a magnetic field. In another embodiment, the flakes include a magnetically discontinuous layer. In a particular embodiment, deposition of nickel on a diffraction grating pattern produces magnetic needles along the grating pattern that allow magnetic alignment of the resulting diffractive pigment flakes. Color scans of test samples of magnetically aligned flakes show high differentiation between illumination parallel and perpendicular to the direction of alignment of the magnetic diffractive pigment flakes.