Home World Business How diamonds can become ‘the new gold’ for investors

How diamonds can become ‘the new gold’ for investors

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Diamond trading has gradually become more open

Reuters  |  London  Last Updated at October 10, 2017 22:05 IST

can at last be an investor’s best friend, the Diamond Exchange (SDIX) said on Tuesday, as it launched a new standardised form of the precious stones to rival gold ingots as a safe-haven alternative to


The industry says are the world’s most concentrated form of wealth, but have long viewed them as less useful as a store of value than gold because each stone is different, making its value subjective and trading difficult.


Alain Vandenborre, chairman and founder of SDIX, says technology has solved that problem and can now become “the new gold”.


Diamond Bullion, produced by the Diamond Mint, is a collection of grade whose value can be quickly checked. Denominations will initially range between $100,000 and $200,000, with higher and lower values possible in future.


The are stored in a credit card-sized device containing a chip that allows immediate valuation based on exchange trading and instant authentication, which is crucial as synthetic have no resale value.


A mark on the Diamond Bullion developed by the Institute of Diamond Grading and Research (IIDGR), which is part of Anglo American’s (AAL.L) De Beers Group, provides a further guarantee.


De Beers, the world’s biggest diamond producer by value and a leader in equipment that grades and authenticates diamonds, traditionally sold its gems to a limited group of trusted individuals called sightholders.


Diamond trading has gradually become more open.


Diamonds

In 2008, De Beers began selling rough through online auctions and in June this year began auctioning polished stones too.


SDIX, launched in 2016, says it is the world’s first and only electronic exchange for trading investment-grade


Diamond miners in principle welcomed Diamond Bullion.


“Anything that can bring transparency to the diamond price is a good thing,” said Karl Smithson, CEO of Stellar (STELD.L), which has a diamond-mining project in Sierra Leone.

First Published: Tue, October 10 2017. 22:02 IST

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