Diamonds investment

Diamonds may soon outshine gold as investors' most-sought after asset

Diamonds may soon outshine gold as investors’ most-sought after asset

A new standardized diamond product introduced this week by the Singapore Diamond Investment Exchange is poised to replace gold as global investors’ most-sought after asset, mining.com reported.

Gold has traditionally been the go-to investment for those looking for safe-haven assets but the new product – a credit card-sized package of diamonds named “diamond bullion” – may change all that sooner rather than later.

Diamond (Credit: tiero / Fotolia)

Diamond (Credit: tiero / Fotolia)

he Singapore Diamond Investment Exchange’s new bullion was also designed with aim of removing some of the main obstacles for trading in precious gems, namely the subjectivity of their value.

The diamond bullion was crafted to store and display investment-grade polished gems sourced at wholesale prices on the Singapore Diamond Investment Exchange. It is currently issued in standard denominations of $100,000 and $200,000.

“Until now, there was no way people could invest in diamonds in the form which is equivalent to investing in gold, “Singapore Diamond Exchange founder Alain Vandenborre told the website.” A diamond has absolutely zero correlation with any other asset class, whether it’s commodities, bonds or equities. It’s a store of wealth, it’s a hedge against volatility and you need that in your portfolio.”

According to the report, each diamond bullion contains a chip that details immediate diamond valuation based on the gem’s exchange trading and instant authentication – something crucial when it comes to synthetic diamonds, which have no resale value.

The bullion also has a mark, developed by the International Institute of Diamond Grading and Research, which is part of the De Beers Group, to further guarantee their authenticity.

According to the Singapore Diamond Investment Exchange, not only will investors be able to trade diamond bullions globally, they will also get real-time pricing data via the exchange’s website.

Singapore Diamond Mint Company Chairman Francis Yeoh said diamond bullions are designed to be the gem industry’s “gold bullion,” adding they will also be “an investment that can be passed on to future generations for years to come.”

 

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