posted on Jul, 15 2010 @ 03:18 PM
BLING BLING for everyone!
I don't really see what Mugabe's point is in flooding the world's market with diamonds. Don't you think it would be better if he and his country
hoarded all the diamonds they have to make them even scarcer, which would drive the prices up? Then sell a few every now and then at prices high as
possible for maximum profit and maximum market control.
If he sells all of their diamonds now all at once the only people he would be hurting would be his countrymen because he would not be making near as
much as if he hoarded them and sold them slowly and separately. Also, he will lose the only chips/leverage he has at the table that is the diamond
Yes, it would give his country a quick cash flow, but do you really think Mugabe would use that money for the good of his people? I doubt it.
One way or another most of the cut diamonds will eventually wind up in DeBeers' hands if they truly are the majority of the diamond industry like you
guys say. This will allow them to hoard the diamonds and distribute them to their liking allowing them to maximize their profits.
[edit on 15-7-2010 by tooo many pills]