A Singapore exchange has launched a new investment-grade, standardised diamond product to rival gold as a safe-haven asset.
Traditionally, diamonds are difficult to trade as assets because stones vales are subjective.
The Singapore Diamond Investment Exchange (SDIX) hopes to remove those obstacles and lure safe-haven investors to diamonds through the listing of Diamond Bullion.
Issued by the Singapore Diamond Mint Company, Dimond Bullion is a portable, credit card-sized package of investment-grade polished diamonds sourced at wholesale prices on SDIX and issued in standard denominations of about $100,000 and $200,000 each.
“The Diamond Bullion is designed to be the ‘Gold Bullion for diamonds’: a standard, portable, and highly liquid format that allows investors to access the unlocked and true value of diamonds for the first time," said Tan Sri Dr. Francis Yeoh, chairman of the Singapore Diamond Mint Company and a shareholder of SDIX.
"Investors can uniquely trade this product on SDiX at a wholesale price just as they would with any other commodity with market-driven prices, bringing transparency and trust to diamonds as a fully fungible and tradeable asset.”
Yeoh called diamonds the most concentrated form of wealth on earth.
The International Institute of Diamond Grading and Research unit of diamond giant De Beers will add a proprietary inscription technology to allow for the unique identification of each diamond set, ensuring their authenticity.