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As Latin American prosperity increases so do Latin American tastes and buying power. This is reflected in the inauguration of a diamond exchange in Panama City, Panama. Reuters, August 2008, notes that as sales of diamonds slow in Europe and North America Latin America’s middle class is becoming more wealthy and thus a natural market for diamonds.

Reuters reported in August 2008 that, “Diamond sellers are setting their sights on Latin America's increasingly prosperous middle class, which is benefiting from economic growth and stability, as U.S. and European sales of the rare stones slow.”

Reuters goes on to report that diamonds are mined in Brazil, Venezuela, and Guyana but that Latin American has never had much of a market for diamonds.

Investment in Latin America and Diamonds

A diamond exchange is being built in Panama City. A spokesman for the Panama Diamond Exchange is quoted as saying that there are four main markets for diamonds in Latin America. These are Brazil, Mexico, Argentina, and Chile.

One of the many skyscrapers being built in Panama is the soon to be completed 50 story diamond exchange, custom built for the purpose of guarding, trading, cutting, and polishing diamonds.

According to Reuters, “Panama will make the exchange a tax-free zone and has applied to join the Kimberly Process to stop the spread of conflict diamonds so rough stones can be traded there.”

Diamonds as a Measure of Panama Prosperity

A look at the Panama City skyline tells us of ongoing investment in Panama. Panama’s creditworthiness was recently demonstrated by an A2 rating given by Moody’s to the Panama Canal Authority. Investors are looking at long term prosperity throughout Latin America and in Panama specifically. Panama retains the highest foreign investment per capita of any Latin American country. Expect to see the Panama economy grow steadily for years to come and for real estate values to grow steadily too.

From international diamond dealers taping an emerging middle class market to a small family business in Central Panama extracting a valuable chemical from cashew nut shells there is business and investment opportunity in Panama for all. The number of retirees making Panama their home is well known. Only more recently has the number of younger expatriates taking advantage of the business investment visa to business here become more obvious.

We believe that Panama’s prosperity, investment opportunities, and real estate values are here to stay. If you have questions regarding investment opportunities and real estate in Panama come to see us at ABPanama. We have over 23 years experience managing real estate portfolios and would be pleased to help you find your investment niche in Panama.