What role do diamond reserves play in determining prices

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Reference no: EM132121507

1. Research global supply and demand for diamonds and how it affects prices. What role do “diamond reserves” (inventory) play in determining prices? Explain. What do you think the demand-supply curves for diamonds looks like? Try to sketch it out.

2. What are the detailed components of inventory holding costs in this situation? What other factors might influence holding costs, such as security costs, obsolescence costs, and others. What is your estimate of inventory carrying costs as a percentage of item value? Explain your reasoning.

Reference no: EM132121507

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