Mugabe threatens to flood the world with diamonds in unauthorised bid to bring Zimbabwe back from th

I personally see no problem with this. He wants to flood world with diamonds - well this will make certain things cheaper. Especially diamonds that he intends to sell. So he is going to shoot himself in the foot, as i see it. Yearly world market for diamonds is not infinite.
Stock of diamonds in Zimbabwe is finite. And he is going to sell lots of those for lot cheaper.
???????
At least i hope he intends to invest short term gain in economy of Zimbabwe.

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 market.

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]