Diamonds are not only a girl’s best friend but now investor’s too. The Singapore Diamond Investment Exchange (SDIX) launched a new uniform form of the precious stones to rival gold on Tuesday. The diamond industry believes that diamonds are the world’s greatest concentrated form of wealth. Investors have seen gold as more valuable because since each diamond is different and makes the value subjective.
Alain Vandenborre, founder of SDIX, stated that technology resolved the issue and diamonds can now become “the new gold”.
Diamond Bullion a collection of investment grade diamonds whose prices can be easily assessed was created by Singapore Diamond Mint. Values will originally range from $100,000 to $200,000.
The new collection of diamonds are stored in a device the size of a credit card which contains a chip allowing immediate evaluation based on exchange trading and instant authentication. A mark on the Diamond Bullion created by the International Institute of Diamond Grading and Research (IIDGR) which is part of Anglo American’s De Beers Group provides additional guarantee of the value.
De Beers is the world’s largest producer of diamonds by value and also a leader in equipment that grades and authenticates diamonds. The company had originally only offered the sale of their stones to a limited number of trusted people called sightholders.
Diamond trading has progressively become more appealing to investors. De Beers has been selling rough diamonds through online auctions since 2008 and in June of this year the company began auctioning polished stones as well.
SDIX, established in 2016, states that it is the world’s first and only electronic exchange for trading investment-grade diamonds. Diamond miners welcomed Diamond Bullion.
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“Anything that can bring transparency to the diamond price is a good thing,” stated Karl Smithson, CEO of diamond company, that includes a diamond-mining projects.