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Five Factors Influencing The Supply Of Diamonds Essay

878 Words4 Pages

5 factors that influence the supply of diamonds in SA The supply of diamonds are influenced by many factors. I will just be looking at 5 factors which I feel are very significant to the influence of the supply of diamonds. These factors are: 1. Availability of diamonds: this will affect the number of diamonds that can actually be mined and produced to be sold in the market, the more diamonds available the more supply can be produced. (Anonymous, n.d.) 2. How many diamonds are produced: this will affect the amount of diamonds that can be sold because this is the number of diamonds which are actually available to sell (supply) - the maximum amount of diamonds that can be sold, well until new diamonds are produced. 3. The costs of producing diamonds: costs will either decrease or increase the amount of supply of …show more content…

Income & industries: the higher the income one achieves, the more likely it will be for him to buy a diamond because he will be able to afford it hence him being in the target market. The influence of new/ developing industries affect the demand of diamonds, some industries need diamonds to function and work efficiently, such use stone engraving and the development of supercomputer. The more the industries grow, the more the diamonds are needed. (Anonymous, n.d.) 4. Advertisement: advertisements are very important in the world of selling goods. If a diamond retailer advertises diamonds properly in order to reach its target market, the demand of diamonds will increase. This can also influence newlyweds to purchase diamond rings. 5. Current Affairs: this factor also influences the demand of diamonds in the sense that the public is always looking and listening. If a diamond producer or company is under scrutiny or does something bad, less people are likely to want to purchase their diamonds. Factors such as decreases or increases in diamond stocks influence the demand accordingly. If people here that diamonds are finishing, the demand will increase

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