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Illicit Diamond Buying And Selling And The Kimberley Process

Diamonds have always been the subject of desire and riches; somehow these gems has become the absolute sign of love, of riches, of opulence and of social acceptance, but most people realize that the internationally accepted standards are the best way in which to buy diamonds honorably. The hard and unpalatable fact is that diamonds are used to fund conflicts, especially in Africa where there is an abundance of diamonds, and it is very unfortunate that many unscrupulous buyers do not care where their stock comes from; thus the need for the Kimberley Process. However, why do diamonds cause such an emotional and greedy reaction from so many people? They are plentiful and readily available through normal channels, and there is hardly any reason to try and obtain them through subterfuge and other illegal channels. The fact is that the Kimberley Process is designed to protect an industry that has reached its zenith and that needs to protect its own interest by controlling supply and prices. Detractors may protest that this is paramount to dictatorship over the entire industry, but it nevertheless seems to be a working solution.

The Kimberley Process Protocol

The protocol requires governments to institute laws and processes to control the import and export of all diamonds, and many international independent states have accepted this protocol. Detractors point out that there is no reason to control the flow of diamonds because they are nothing more than mere commodities. The main diamond merchant in the world remains to be De Beer's in South Africa, and they are the main sponsors of the worldwide organization of the Kimberley Process. There are many organizations and individuals that are vehemently opposed to the world wide domination exercised by the De Beer's conglomerate; they specifically point out that diamonds are not scarce, and that the dominion and price fixing by De Beer's cause artificial market conditions. In fact, there are more than enough diamonds to allow every average person to afford a diamond ring, although the market manipulation by De Beer's see to it that prices remain very high.

Kimberley Process - Preventing Terrorst Activities

It is an unfortunate fact that diamonds are used to fuel terrorist activities and illicit activities, especially in Africa, the main source of diamonds. The South African market seems to be stable, but many other African countries, such as Angola, Lesotho and Zambia, which have substantial diamond resources, do not offer a stable economy that allows for fair trade. In this way, revolutionary forces often target production areas as their first priority, because control of diamond mines will give them ascendancy on the local economy. The Kimberley Process does not apply in these circumstances, and there seems to be many buyers that are only too happy to buy these precious gems from whoever offers them. The question remains, however: why is it necessary to control the flow of diamonds around the world? Is it sensible or is it merely big business manipulating an abundant source of supply?






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