As they do this will there be more competition (artificial or otherwise) for the same assets?
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With increased competition will prices ultimately recover?
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Remember diamonds are not particularly rare. In fact, compared to other gemstones, they're the most common precious stone found. There has been a market built that enables them to sell at a premium. The same thing happens in all kinds of markets.
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Replying to @rmhrisk @saleemrash1d and
And in your opinion, if a major diamond buyer goes bankrupt, the price paid to mines will go up or down? I think it will go down.
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Replying to @taviso @saleemrash1d and
I think another diamond company would buy up their assets to control the price in the market.
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Replying to @rmhrisk @saleemrash1d and
You think the jewellers want to prevent the price paid to mines from falling? Well, I guess we just disagree on this, without non-anecdotal data I think we're stuck
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Replying to @taviso @saleemrash1d and
No, the miners do. Jewelers would like to control prices in their own markets not their suppliers (miners). In other words they want to pay little and sell for high. Miners retain control by creating scarcity and demand. They loose control of either and their business collapses.
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Replying to @rmhrisk @saleemrash1d and
I asked what would happen if a major diamond buyer goes out of business - who buys the bankrupt buyer to prevent prevent prices from falling - the miners?
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Replying to @taviso @saleemrash1d and
I missed buyer; sorry, in that case DeBeers would likely either buy them to keep them going or build a competitor to fill the void, repackaging product to fit new market realities.
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They would also do things in parallel to limit availability to ensure other buyers continued to pay higher prices.
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DeBeers buys the competitor and makes sure they keep paying as high price as possible for their raw materials? Alright, well, I don't think we're going to change each others mind on this.
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