Diamonds from Zimbabwe

There is a bit of a discussion going on in the diamond trade worldwide about Robert Mugabe's plan to release rough diamonds form Zimbabwe onto the open market. Now we're not talking about a small amount here 4.4 million carats is the amount. It's enough to turn a head or two. One thing we have to remember is that historically the quality of rough from Zimbabwe is generally low. An amount of this size would probably only yield 1 to 1.5 millions carats of gem grade Diamonds. But this is still not small fry.

Where the problem arises is whether these stones are classed as "conflict" or "blood" Diamonds. Many bad things have gone on in this country, but these stones are trying to enter the market legitimately. Officials from the Kimberly Process (A process created to try and ensure global diamond sales do not fund war, drugs, oppression and other awful things) have been in talks about Zimbabwe entering the certified pipeline. I have to say that as a world leader, I don't trust this man or his regime, or in any way really. But if there is the opportunity to regulate the flow of these diamonds, it should keep the prices up a little meaning there is more money to benefit his countrymen. If it happens.

I think this is the Kimberly Process' way of keeping friends close and enemies closer. What would be the impact on world trade? Not a lot if regulated. What would happen if it wasn't regulated? Price drops and possibly a crash. If these Diamonds are banned from the market altogether, the people of Zimbabwe have no chance of reaping the benefits, whereas if they were allowed they have a slim chance.

This has left me in a bit of a quandary as to what the best answer is. I'm so glad I'm not one of the decision makers! Be interesting to see your thoughts.

Take care,
Damian