A Singapore company has created an investment product it’s hoping will help to make diamonds an investor’s best friend – or failing that, perhaps, at least a solid, easily tradable investment.
The Singapore Diamond Mint Company (SDM) claims its new product, which it calls “Diamond Bullion”, will boost the ability of investors to buy and sell diamonds by creating what it calls a “standardised, liquid, and exchange-listed format” for trading the distinctive gemstones.
Until now, the buying and selling of diamonds has been a relatively slow and specialised business, because the stones, unlike gold or other precious metals, vary dramatically in value, depending on their size and “quality”, as measured in “carats”.
The Diamond Bullion is a credit card-sized package of investment-grade diamonds in what the company describes as “a tamper-resistant sintered zirconia case, with a unique optical signature recognition system and serial number” (see photograph, above).
The optical signature recognition system and serial number “enable the instant authentication of the product, using a secure mobile app”, according to the company.
A “proprietary unique inscription technology”, provided by the International Institute for Diamond Grading and Research (IIDGR) of the De Beers Group – the London-based diamond mining and marketing giant – is also incorporated into the Diamond Bullion, SDM said in a statement unveiling the product today.
This technology, it added, “enables the unique identification of each diamond sealed in the Bullion, through a proprietary table inscription, which is integral to ensuring the authenticity of every diamond in each Diamond Bullion sold”.
These Diamond Bullions will then, the company says, “be exclusively listed on the SDiX, the world’s first fully electronic exchange for trading investment-grade diamonds”, while investors obtain real-time pricing data via the SDiX website or, if they prefer, via an SDM mobile app.
Trades will be recorded in the SDiX Electronic Central Depository, while digital ledger services will be available via blockchain in the future, SDM said.
The Diamond Bullion cards will be made available initially in a choice of either silver or gold case colours, in standard denominations valued at approximately US$100,000 and US$200,000 respectively.
According to SDM, the Silver Diamond Bullion was soft-launched on 2 October (last week), and as of the market’s close four days later, closed at US$106,450 on the SDiX.