Rob Bates: Six Alternatives For Selling Rough, Or Not?

Opinion piece
23/10/2015 21:23

In his blog "The Diamond Selling System Is Broken. Can It Be Fixed?" Rob Bates looks at the stammering rough selling system and discusses six alternative scenario's for selling rough and rough pricing, their pro's and con's and the likelihood of being adopted. Bates weighs the alternatives; using prices based on production (mining) cost, producers providing credit to clients, the option to let clients negotiate, steady prices throughout a contract term, selling rough exclusively through tenders and last but not least, more transparency on selling systems. Bates concludes that none of the alternative scenario's have high chances to be implemented and the industry is likely to rely on efforts to increase demand, alongside producers allowing manufacturers reasonable profit margins.