09/17/2020

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A New Way to Invest in Diamonds



Diamond Standard Makes a Plan

Diamond Standard is a new startup looking to open up the diamond market to a wider range of investors. The company created standardized sets of the precious stones, called coins. It plans to sell $25 million worth of the coins starting today.

The idea of these coins is to make a benchmark similar to a standard gold bar. If these coins become popular, the diamond industry could see big changes.

Changes for the Diamond Industry

The COVID-19 pandemic has battered the diamond industry. Prices have fallen as consumers purchase less jewelry. Investors hope that this new way of trading diamonds will stabilize diamond prices.

Leaders in the diamond industry also see this as a way to modernize diamond trading. The new initiative could create more supply-chain traceability and make diamond pricing clearer.

Diamond Standard Co. plans to begin by selling 5,000 coins each worth $5,000. It will then increase its offerings by bidding for diamonds around the world.

New Technology Allows for More Precise Diamond Valuation

This is not the first attempt at creating investment vehicles tied to diamonds. However, professionals in the industry say that even five years ago this type of benchmark would not have been possible. New diamond testing technology developed recently allows for more precise readings of stones’ color, clarity, and other factors that impact their value.

Investors will be eager to see how this change in the diamond industry impacts diamond retailers like Tiffany &Co. (TIF), as well as diamond miners like De Beers Group and Alrosa Group (ALRS).


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