Mugabe seizes diamond mines - any effect on pricing?

[inheritedring1234]

Any experts have an opinion on what the news coming out of Zimbabwe this morning might to do diamond pricing anytime soon?
http://www.reuters.com/article/us-zimbabwe-diamonds-idUSKCN0W52J3

The article implies that Zimbabwe isn't that important to the diamond mining industry but even a ~3% drop in global supply seems like a lot to me...

 

[Victor Canera]

There has already been decent upward pricing pressure for rough diamonds. At times (many times) the rough diamond side of the business is almost diconnected with the polished side of the diamond business.
Zimbabwean rough isn't considered to be the most desirable diamonds out there. Many times, the stones are a bit lower color and have a greenish, unattractive tint to them. The world's most desirable rough probably comes from Canada at the moment which are in the colorless range usually and high clarity.
To summarize, IMO, it's going to have an absolute minimal impact in final polished diamond prices BUT there was already upward pressure in rough diamonds before this story broke out.

All the best,

 

[denverappraiser]

Zimbabwe is a mess and a kleptocracy. That said, what Mugabe is going to do with all of those diamonds is sell them, right? He wants money, not diamonds. It doesn't even seem out of the question that who is going to sell them to is the very people he's screwing right here although they've got plenty of competitors as well. The diggers are going to get a new slavedriver, and it's probably not going to help their problems much, but this isn't going to effect the downstream market one iota.

 

[WinkHPD]

Please do not forget that many cutters will NOT touch Zimbabwe rough.

Zimbabwe is a signatory to the Kimberley accords, but the Kimberley accords deal with terrorists who kill and maim people to get them to do what they want and use the diamonds from murder and mayhem to buy weapons.

In Zimbabwe it is the government that is the primary murderer and mayhemer. Thus many cutters will not treat in their diamonds, no matter the price. Rap will not even let them be listed on his sheet. (And yes, I know that mayhemer is not a real word, but neither is Mugabe a real or legitimate human.)

Wink, who is very disgusted with Zimbabwe.

(Note to self: NEVER GO TO ZIMBABWE NOW!)

 

[inheritedring1234]

Thanks for the in-depth responses. Honestly, its a relief to hear that Zimbabwe diamonds are shunned.