Nervous Holders, page-45

To change the subject I reckon gemfields moving their auction forward is pretty bullish.. heres the theory

Ruby buyers cartel has shut Mustang out of cutting stones themselves......
Not exactly free market thinking is it?? That would have raised a lot of eyebrows I reckon...

My gut feeling is that for this auction we can expect a higher price because ruby buyers want MUS to be a success, it will no doubt bring the long term price down.. which is why gemfields have moved their auction forward.... Any price difference which cannot be attributed to gem quality will be seized on by rough ruby sellers.

So if I had time to properly research I would be asking

1. What is the quality breakdown of gemfields stock moving into the auction. Is what they plan to tender at the upcoming auction different to what they usually tender?

2. How much money do Mozambique make from this industry and is this income of great importance to the trade of Mozambique?

3. What is the % of ruby coming out of Mozambique as a % of world total?

The cartel is only any good if they ensure that quality stones dont become worthless.. i.e- they can restrict supply which is good for all concerned.
But if on the one hand stop companies subverting the cartel regards producing their own high quality cut stones, and on the other use increased supply to push down prices, well are they really acting in an ethical manner??

And this is why I ask what % of rubies do Mozambique produce globally....

Because if its the majority of world ruby then basically the Mozambique govt could get together with producers of rough stone and create their own supply chain. It would be a good way to placate resource nationalists within their own country, and provided they were to do this with statements explaining why this has happened, and that this will not happen with other commodities they can actually provide a point of difference between themselves and say Tanzania and to an extent S.A.

So my prediction would be (provided that Mozambique are producing most of the worlds ruby) would be that both Gemfields and Mustang sell all or most of their rubbies at the next auction at no less than previous $ per carrot values...