ATP - General Discussion, page-222

It’s true that China is responsible for the surge in demand and prices. But it’s also true that Chinese consumers have been willing to pay much more than those in the US etc. In a very tight market, RoW consumers have been crowded out. If the Chinese slowed demand and prices moderated, demand and supply would return to the RoW. The bigger picture is that, like gold, there will always be strong global demand for pearls, and that the supply of pearls will remain constrained by environmental factors. All commodities suffer violent price fluctuations up and down; prices in the latest auction were still high by historical standards and yet the company thinks it can command better pricing through other sales channels. The longer term outlook for the company is still very favourable. But I too think a buyback policy would be premature, especially while special dividends are being paid.