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Just imagine
by Paul Slegers | Published  27/11/2004 | Diamond News
Day number four, back home, warm and cosy

Back home, you try to summarize what you have learnt.

 

The good thing, probably, is that you have inherited a diamond mine. Unfortunately, to cover the mining and prospecting investment, your great-uncle had borrowed a large sum on the bonds-market. If you do not renew your contract with De Beers’, you risk not being able to repay that loan.

 

On the other hand, the government has just taken away 5% of your turnover, by raising export taxes and trying to create a local cutting industry.

 

Finally, the product-mix that you mine, is not all beautiful big gem-diamonds. The majority is of industrial, or really low-price-quality, and you have to make sure that all keeps getting sold, in order to remain profitable.

 

Then, you realise that you have to step away from your dream of super-wealthy Scrooge McDuck. You have just entered a business, that you still need to learn, but that is essentially like any other business. If you make sure to take good and wise decisions, and if you are lucky, your business will be profitable. If however, you take it for granted, you will loose enormously.

 

 

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Article Series
This article is part 1 of a 3 part series. Other articles in this series are shown below:
  1. Just imagine
  2. The Diamond Industry in 2005
  3. The diamond industry in 2005 – halfway review
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