As Djibouti Prepares To Topple Next, Should One Go Long A Girl's Best Friend?

Tyler Durden's picture

As what is rapidly becoming the biggest wave of revolutionary discontent since 1989 Eastern Europe spreads to every less than wealthy country and region, the next regime to topple may be that of smallish Ethiopia and Somalia neighbor Djibouti. The tiny country, with a population of less than a million, known only for being situated at the horn of Africa, has just seen a major (relatively speaking) protest, calling for President Ismael Omar Guelleh to step down. And while the country is completely insignificant geopolitically, it is merely a stepping stone as the African dominoes spread south: are Ethiopia and Somalia next to go? And after them all of central, and then southern Africa? So here's a thought - should the unrest reach Congo, and eventually South Africa, what will happen to the price of diamonds? While De Beers will be giddy to see a plunge in already artificially low supply, the story will be of course that no more shiny pure carbon crystals are made. And as the natural market for diamonds tends to be the rather affluent portion of society which is the only one to have benefited from loose liquidity, passing on diamond prices may not be perceived as all that difficult?

More on Djibouti from the BBC:

Thousands of people have taken to the streets of Djibouti to call for President Ismael Omar Guelleh to step down.

The demonstrators were reportedly monitored closely by security forces in riot gear.

Mr Guelleh's family has governed the Red Sea city state since independence from France in 1977. The United States has a large military base in Djibouti.

The constitution was last year amended, to let Mr Guelleh seek a third term.

Some of the protesters say they will stay in a stadium until Mr Guelleh, 63, leaves power in the Somali-speaking country.

Elections are due in April. Mr Guelleh was re-elected unopposed in 2005.

The protesters held banners reading "IOG out" and "No to a third mandate", reports the AFP news agency.

How long before we read a comparable report about all the largest diamond exporters in the world?