Friday, February 13, 2009

Angola: Angola may buy its own diamonds to combat crisis

Reuters reports Angola, the world's fifth diamond producer, is considering buying diamonds from firms operating in the country to help them overcome a sharp drop in market prices, a spokesman for state-run diamond firm Endiama said.

Demand for rough diamonds has plunged in recent months and is expected to drop by some 60 percent this year as the global recession hits demand for luxury goods in vital markets such as the United States and Europe, analysts have said.

"The purchase of diamonds by the state is a measure that is being considered to help companies in the sector weather this crisis," Sebastiao Panzo said in an interview with Reuters on Thursday.
Published by Mike Hitchen, Mike Hitchen Consulting
Putting principles before profits