I’ve been in diamond production on modest to medium scale since June 1998, CEO on an alluvial diamond mine in South Africa. The other day I overheard someone state that he wanted to buy his wife a diamond ring, but rather went for a different gemstone since of the price. This amused me; can it be that diamonds are so pricey in a store? ”
I just turned away and started talking about the weather, mainly because we’re not happy, far from that!! Unlike the diesel price, which was $0.23 in 1998 and we now pay $1.52 in 2008 (that can be a 565% increase), the diamond price stayed fairly stable to the producer.
In commercial or retail asset there is a actual should preserve in near communication with tenants. It is house markets like this that call for effective tenants to underpin asset performance and supply stability. You don’t desire to loose any tenants at this time. Real estate agents and landlords must work towards sound and solid tenant communication in any respect times. This might be through:
Here’s an example:
In late 1999 we observed a 22ct, I color, near spotless diamond, which were bought in early 2000 for $5681.81/ct. At the beginning of 2008 we found another 22.76ct, I color, close to spotless diamond (the shape was just as good, if not greater than the a single in 1999, and it was as similar as one particular could wish for, best for comparison). This diamond was sold in mid 2008 for $6533/ct.
- Tenant meetings
- Quarterly Social Functions for tenants in the building
- Newsletters by email
- Direct telephone contact weekly
- Onsite normal property inspections
It is surprising just how numerous tenants will tell you that they only see the property manager or landlord when it’s rent review time.
Financial Pressures
This isn’t great math for any business, and for this reason hundreds of medium sized mines had to shut their doors, or pits in this case. In turn, with manufacturing going down, the patron will spend much more for this precious stones.
Any diamond producer can inform you that a substantial precious metal cost = low diamond value with the producer, it is an unwritten rule! I reckon it works like this: The market place wants jewelry in all shapes and sizes, diamond gold rings, diamond jewelry earrings, diamond precious metal watches etc., using the emphasis on diamond and gold. If either the precious metal price, or diamond selling price should unexpectedly rise, the market wouldn’t have the ability to cope together with the dramatic enhance in price. Because platinum is the currency of trading in the worlds, diamonds need to play second fiddle. Since 1998 the jewelry cost grew from $250 to a whopping $1000 in 2008. 400% increase. But the producer in no way sees this increase along with the money ends up in the pockets of your middleman!
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