Diamond Standard Co. announced the successful establishment of the Diamond Standard itself -- the public index of gemological content inside the commodity.

Diamonds are interesting investments because each one is one of a kind, and investors own just 1% of the market.

Meanwhile, investors own 32% of the gold market, 19% of the silver market and 17% of the platinum market. But now that diamond standardization is in full swing, the precious stones may soon become as relevant as precious metals. 

Determining the value of diamonds relied heavily on expert opinions, making the gemstones a risky investment. Subjectivity is involved when establishing the price of a diamond. One expert might say your diamond is worth $15,000, and another might say $13,500. 

That also used to be the case with gold. The same gold coin had different values depending on where you wanted to use it. But after it became standardized, it found its place as an investment asset with a whole market around it. Diamond Standard’s system brings a similar standardization to the diamond market. 

It has created Diamond Standard Coins and Diamond Standard Bars that contain a certain number of diamonds. The value of every coin is equal to all other coins created at the same time. The same goes for Diamond Standard Bars. 

With this ingenious maneuver, Diamond Standard unlocked the fungibility of diamonds. Investors can now trade them just like gold, stocks or any other tradeable asset. Perhaps even more important is that diamonds may soon become listed on commodity indices. Bear in mind only 1% of diamonds are an investment at the moment. 

If they are listed, their price might experience the same hike that gold experienced after gold exchange-traded funds (ETFs) launched about 20 years ago. Additionally, institutions are also considering diamonds because of their exceptionally low correlation to other assets. 

As a result, as much as 15% of diamonds may soon be held as investments, according to Diamond Standard CEO Cormac Kinney, who has 20 years of experience building trading systems. Kinney and his team built a trading system specific to diamonds.  On the Spot Market, a regulated marketplace, you can buy and sell diamonds just like any other commodity. The Diamond Standard Coin is also listed on Bloomberg Terminal as DIAMINDX. 

Apart from Diamond Standard Coins and Diamond Standard Bars, you can also invest in Carats, a digital token that’s instantly redeemable for physical diamond commodities. The company has also created a Diamond Standard Fund for accredited investors looking to gain exposure to Diamond Standard Commodities. 

Click here to invest with Diamond Standard. 

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