Latin America’s First Diamond Exchange Opens in Panama

Leaders of the world diamond and jewelry industry amassed in Panama City on October 24 as Latin America saw the launch of its first diamond exchange.

The $200 million project will comprise an office tower and diamond exchange, as well as a shopping mall with high-end retail jewelry stores and a luxury hotel.

The turnover of diamonds, precious stones and jewelry that is projected to be traded on the exchange is estimated to be more than $7 billion yearly.

Erez Akerman, president of the PDE, told a press conference that the diamond exchange would serve as the primary business center for the diamond, gemstone and jewelry business in Latin America.

“This is a region that is home to about 9 percent of the earth's inhabitants, and which over the past decade has seen tremendous economic growth and a considerable rise in its inhabitants' standard of living. This continues, even as the rest of world is experiencing financial crisis,” Akerman said.

“We will provide the region's diamond, gemstone and jewelry sectors the home that it never has had until know, enabling its members to do business without having to travel long distances, in a secure environment where they can speak in their own language."

World Diamond Council Chairman Eli Izhakoff, one of the many industry leaders present, called upon the PDE to complete the creation of a legal framework for the diamond trade as soon as possible. “Based upon our discussions with the government during our visit, I am confident that all will be done to have a recognized Kimberley Process in place as soon as possible,” he said.

CIBJO President Gaetano Cavalieri noted that the PDE complex would not only facilitate the growth of the diamond trade in Latin America, but also the trade of fine jewelry in general. “Along with the diamond traders will come the banks, shipping companies, jewelry wholesalers and manufacturers, colored gemstone dealers and more,” he said. “This is a tremendous opportunity for Latin America and the world jewelry industry in general.”

Construction is expected to begin midway through 2009 and the first stage is forecast to be completed within 18 months.