Cultured pearls won't be worth the same as the naturally occuring variety.
(Just like a good haircut is worth more than an axe job.) He's adversley affected his potential profits unles he sells more more more into a market that is skeptical about the value of his cultured pearls because the market 'knows' he can always farm more more more and eventually he saturates his available market, who really prefer the natural variety, with the 'kitsch' pearls anyway. An advertising campaign is in order to convince the market of the value of 'farmed pearls'. . . . Doug's right, this is all too subjective. Leigh On 3/26/07, David B. Shemano <[EMAIL PROTECTED]> wrote:
Leigh Meyers writes: >> He becomes wealthier due to his financed technological advantage. >> >> Next: The pearls, albeit a 'renewable resource' slowly become scarcer because he >> needs to repay the external financing or show increased profitablity, dividends... etc, >> >> He begins to over-extract the resources that are providing his income. >> >> Yet he becomes weathier still, due to scarcity of pearls, a scarcity which depresses >> demand, causing the 'pearl market' to stabilize... for a while, and stalls off 'peak >> pearls'. >> >> Finally, inevitably... again, due to the neccesity of ameliorating those external financial >> demands, the pearls are all gone... and, hopefully for the diver, the investment in his >> venture paid off. But the pearls are all gone! >> >> For the financier, and the diver by extension at some point in this saga, (probably >> around "Yet he becomes weathier still...") it was all about the money anyway... not the >> pearls >> >> If he were a pearl lover, he would most likely have cashed out instead of 'fishing out' >> the pearls.. >> >> But greed over-rode his judgment. "But the pearls are all gone!" That is your prediction of the market process. But to the contrary, eventually our entrepeneur would start farming his pearls, which is exactly what now occurs, and there are plenty of pearls (at a price). Score another one for the market. David Shemano
