Global Diamond Industry and SGF buyout CrockyFurther to the topic of an inevitable buyout of SGF.
Take into consideration a post a few days back about Benny Steinmetz wanting to cut out the middle man and get rough diamonds and take them all the way to completion (jewelry retail).
The following quote from the article posted by BlueIce on the Global Diamond Industry yesterday stresses this need now-a-days:
"Caught in the middle between the diamond-mining companies and the jewelry retailers is the diamond cutting and polishing industry, whose profits have been almost completely squeezed out. This industry is in crisis and facing two stark realities. The first is that the global shortage of rough means that many manufacturers will definitely go out of business. The second harsh reality is that cutting and polishing diamonds is no longer a viable business — A DIAMOND MANUFACTURER HAS TO BE PART OF A CHAIN THAT ENDS AT THE RETAIL COUNTER."
This is why I feel Shore doesn't have to sell out to a buyer at all. They can supply Benny with the stones he needs to feed his end-line jewelry business (no middle man), and Shore can reap huge profits the way Aber does. Why sell out for $10, when you can have your cake and eat it too?