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To: Jan Crawley who wrote (20202)	10/5/1998 7:41:00 PM
From: MR. PANAMA (I am a PLAYER)	Respond to of 164684

Anyone catch The Presidents talk after mkt closed...????Like was it everyting you thought it would be and more to justify that huge rally on DOW. GRIM....Tinking of gameplan fer tomorrow

To: Jan Crawley who wrote (20202)	10/5/1998 9:07:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Glenn, what does it translate to? Jan, I am assuming you are referring to the De Beers purchase? Someone on the thread had asked some time ago about Rolex watched being sold for ten cents on the dollar in Asia. This brought up the topic of pricing pressure in the industry and I stated that De Beers is the strongest and largest monopoly I have ever seen. The rough they bought translates into about $700 million in finished goods at retail. Depends a lot on the quality of cutting. De Beers controls the Central Selling Organization known as the CSO. De Beers has formulated contracts that force all rough to go through the CSO and De Beers limits the amount of each lot of the CSO. This way supply never exceeds demand and the price will never fall. The diamond minds are guaranteed a percentage of the CSO sales if they do not dump other rough on the market through third parties. Think of it as OPEC except De Beers permits no cheating. Glenn