Cracks in the Diamond Trade: A flood of low-quality gems has shaken De Beers' iron grip

So far, the plunge in diamond prices has not affected the pricier fine diamonds shimmering in display cases at Tiffany & Co. or Cartier. That upscale market has held its own despite deteriorating demand in financially strapped East Asia. However, some analysts fear that the abundance of supply could overwhelm the firm hold that the cartel led by South Africa's De Beers Consolidated Mines Ltd. has held over the diamond business for decades.