Diamonds are traded internationally. They are extracted and processed by multinationals, who release them at substantial prices to global markets. There however also small miners who supply uncut diamonds on a small business basis. They are often active in conflict regions.
In the orginators on terms the Kimberley process is a measure against trade in 'blood diamonds'
What is the Kimberley Process?
The Kimberley Process (KP) is a joint governments, industry and civil society initiative to stem the flow of conflict diamonds – rough diamonds used by rebel movements to finance wars against legitimate governments. The trade in these illicit stones has fuelled decades of devastating conflicts in countries such as Angola, Cote d'Ivoire, the Democratic Republic of the Congo and Sierra Leone.
The Kimberley Process Certification Scheme (KPCS) imposes extensive requirements on its members to enable them to certify shipments of rough diamonds as ‘conflict-free’. As of September 2007, the KP has 48 members, representing 74 countries, with the European Community and its Member States counting as an individual participant.
But does this process really protect people from conflicts or does it keep out the small producers from international markets, since they can not cope with the bureaucratic red tape?
It is sometimes argued that gold is a crisis proof investment. One is then usually offer gold bullion, but what about gold dust? Gold that has been mined, but wasn't processed further yet. Is it wise to purchase commodity gold or should one rather go for processed gold like gold bullion or gold coins. I am asking, because I am also looking into gold from Zimbabwe. Something that might become a profitable business in the future, when this country stabilizes again.
I would be interested in more articles on commodities. If anyone can provide I would appreciate this. A distinction should be made between commodity futures and commodities traded as physical products of mines and factories.
Some say rough diamonds are storing the highest value on the smallest space, but could they function as currency?
There is a debate about what currency to use. Most Austrians would favour a gold based money and oppose fiat money(money created on the books only). They argue that this will finally lead to a devaluation of currency. But what is the best means of storing value meaning purchasing power?
Are there any other opinions on this?