Why the Market for Large Diamonds Is in Freefall

RAPAPORT... As the who’s who in the glitzy world of high-valuediamond auctions gathered in Geneva in May, there was an understated tone tothis year’s pilgrimage to the Swiss city. While Sotheby’s and Christie’s playedup their offerings of magnificent jewels, which usually boost market sentimentwith the records they set, dealers approached the sales with some trepidation.

The big-...