How do the new diamonds entering the market each year affect the price of diamonds?

Everybody knows that DeBeers controls the flow of diamonds and is manipulating the global diamonds supply in order to maintain a constant state of higher demand than supply. This constantly keeps a state of shortage in diamonds and thus the prices of diamonds never decrease and always raise.

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The price of diamonds is heavily dependant on their scarcity. In a world market where diamonds are regarded as rare natural products, the prices for them are subsequently quite high. Since the late 1940's, diamond prices have risen about 15% every year. However, an influx of new diamonds could drive the market price immensely.

If a controlled amount of new diamonds enters the diamond market every year, the prices that you find today will stay relatively stable with a natural slight increase in price. However, an influx of diamonds into the market could cause the prices to fall. Experts have expressed concern about low cost, high quality diamonds entering the world market and driving down the price.
As long as the new diamonds are introduced into the market slowly, the industry will not be rattled.

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