Canadian diamond sales promote Afriacn poverty

[Garry H (Cut Nut)]

That might be a little strongly worded, but it is an issue I feel is important, since we hear that Canadian diamonds sell at 10 -15% premiums over diamonds from the rest of the world (and most diamonds still come from Africa).

This news story prompted me to write this letter to the editor. If others agree with me please join in - the link to write is on the lower left side of their website.

This is what I wrote:

Sales hot for Canada''s ''conflict-free'' diamonds, Marke Andrews
Vancouver Sun Wednesday, October 20, 2004

CANADIAN DIAMOND DEMAND KEEPS AFRICAN''S POOR

After reading your news story on a Canadian diamond information site Pricescope.com (non sales site of which I am a contributing diamond expert), a different perspective could be of interest to your readers.

The diamond industry and the UN has implimented a method of international certification called the Kimberley Process. This and general awareness within the industry has largely cleaned up illicit and forced diamond mining and smuggling. The west African nations now have (comparitvely) stable governments and tax paid exports are growing ten fold and greater.

The export tax revenue and general wealth from diamonds has been the primary source of funding for infrastructure in other African nations such as Namibia and Botswana. These two nations have the lowest AIDS and better education systems of that poor continent because of diamonds.

It is a sad fact however that they (and the West African nations) are unable to proudly market their diamonds as African because of stories such as the one you ran.

I would like to ask your readers to go out of their way to ask for "development diamonds", an idea that we are promoting to the consumers who visit Pricescope.com when researching their purchases.

Buying a Canadian diamond for nationalistic reasons should be promoted, but stopping sales and demand for African diamonds only harms those consumers are trying to protect.

Garry Holloway
Melbourne
Australia

 

[canuk-gal]

HI:

Did your letter to the editor get printed/any attention after the Marke Andrews article ran? Although it may be old news to the "industry", I just read today in my husband''s professional magazine (Prof. Engineer) "The Pegg", that "Tahera Diamond Corp. has moved closer to bringing Canada''s third diamond mine (Jericho Mine, NWT) on stream through a deal struck with international jewellery giant Tiffany & Co." Interesting.

cheers---Sharon

 

[Garry H (Cut Nut)]

Actually it appears not to have - but could not work out how to go back on that website to previous letters to editor?

A similar letter did get printed in Rapaport magazine.

 

[Daniela]

Garry,

Your opinion is very similar to that of one of my good friends from Africa. He recognizes that diamonds have historically been a source of conflict and war, but to stop buying them from African countries would quite simply ruin those countries'' economy. He feels that in all this talk about "conflict diamonds", people are missing the point that diamonds are real people''s livelihood in these countries. Without them, many would starve.

Food for thought.

 

[strmrdr]

Then the question becomes how to buy them without supporting DeBeers who takes the lion share of the profits out of Africa.
My way of thinking is the natural resources of a country belong to the people of that country not the international cartels.
Buying from DeBeers supports the theft of that property from the people.

 

[denverappraiser]

The notion that valuable natural resources are an important element in war is hardly new. For example, there was a problem a few centuries ago between the Incas and the Spanish over gold that did not play out well for the Incas. Recently oil seems to be involved in a fair amount of this kind of problem, as is timber. Trying to control it by controlling the downstream flow of the resource is guaranteed to fail. There has been discussion that terrorist groups and other criminals may be involved in the diamond trade and that’s a shame. Kimberly is a token start at dealing with that but it hardly addresses the fundamental problems in Africa and elsewhere, nor can it. Diamonds are paltry and Kimberly is a token gesture. Oil is what is paying for terrorists, not diamonds.

Africa has a long history of dysfunctional governments that have seriously hampered their development. This seems to be improving in certain places and I agree with Garry, this is to be encouraged, not punished. ‘Crafted with Pride in Botswana’ should be seen as a badge of honor.

Neil Beaty, GG ISA
Independent Appraisals in Denver

 

[strmrdr]

Date: 11/16/2004 9:30:24 AM
Author: denverappraiser

‘Crafted with Pride in Botswana’ should be seen as a badge of honor.

Neil Beaty, GG ISA

Independent Appraisals in Denver

cept its crafted with pride by DeBeers with the people of the country seeing very little of it.
Explotation at its finest.

 

[Paul-Antwerp]

Gentlemen,

Can you please come down to earth, and discuss facts again. You all are very good when you are discussing facts about light return and other aspects of a stone''s performance, why do you then forget about facts, when you start discussing politics.

To start, Garry, I do not like it when you suddenly go public with statements in which you represent ''we at Pricescope''. I have never seen any consensus on ''development diamonds'' being promoted here, so why do you represent us and that idea in public.

In fact, Botswana is a country with one of the highest numbers of AIDS-infections, and there is absolutely no connection with its diamond mining or not.

Storm, where do you get the idea that the people of countries that have a contract with De Beers see little of the profit, and that they are exploited. Colonisation in these countries stopped years ago, you know. In fact, we are talking about normal business contracts between willing partners, and with far more interested mining companies than countries that have deposits.

Therefore, please, gentlemen, like when you are discussing the merits of a stone, that a consumer asks your opinion about, stick to the facts. This useless slandering match does not become you, and is bad for your overall reputation.

Live long,

 

[strmrdr]

Yes Paul times are changing but corruption is still rampant and the people are seeing little of the money.
With the natural resources available they should be able to do better than they do in economic terms.
A big reason they don’t is exploitation but multi-national corporations.

There are more avenues available these days to sell rough diamonds and some countries from what I'v read have used this fact to force DeBeers to pay a higher percentage to them.
I will tone it down a little but I doubt there is anything that will make me think well of DeBeers there has been way to many wrong doings and too much blood.