loader image
Connect with us

DiamondBuzz

The Diamond Standard ETF: a solution to the natural diamond industry’s crisis

ETF will be positioning natural diamonds as an investment asset, similar to precious metals. A diamond ETF can unlock new demand and stabilize prices

Published

on

296 views

The natural diamond industry faces a critical challenge: plummeting prices due to the rise of lab-grown diamonds.  Consumers, often misled into believing lab-grown diamonds are equivalent to natural ones, are opting for the cheaper alternative, undermining the value and reputation of natural diamonds. This trend threatens millions of jobs and the value of existing diamond holdings.  Traditional marketing efforts are unlikely to succeed in the age of social media skepticism.

The solution lies in positioning natural diamonds as an investment asset, similar to precious metals.  Just as ETFs revitalized the markets for gold, silver, and other metals, a diamond ETF can unlock new demand and stabilize prices.  Diamond Standard has received approval to launch such an ETF.

The Problem: Lab-grown diamonds, while chemically similar, lack the scarcity and economic contribution of natural diamonds.  Their proliferation is confusing consumers and devaluing natural diamonds, leading to excess inventory and potential bankruptcies within the industry.

The Solution:  The Diamond Standard ETF will create a new avenue for demand by attracting institutional investors. This will differentiate natural diamonds from lab-grown, establish them as a tangible investment, and provide the industry with a much-needed boost.  This investor demand will drive up the value of all natural diamonds, benefiting the entire industry.

The Opportunity: Diamond Standard needs $200 million in initial assets to launch the ETF.  They propose acquiring excess diamond inventory from vendors in exchange for ETF shares.  Post-IPO, the ETF projects to purchase $3 billion worth of diamonds from participating vendors.

How it Works:  Vendors can contribute their excess inventory (polished, round, natural diamonds, specific carat, color, clarity, and cut requirements) to the ETF in exchange for shares at a 10% premium on wholesale. This allows vendors to monetize slow-moving inventory, participate in the ETF’s potential growth, and gain a Right of First Refusal to sell more diamonds to the ETF post-IPO.

Continue Reading
Advertisement
Click to comment
Subscribe
Notify of
guest
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

DiamondBuzz

De Beers brings Diamonds and Glamour to London

Published

on

1,971 views

Insiders suggest a star-studded journey to London might be on the cards. But why London? Beyond its glittering reputation as a global hub for jewellery and fashion, whispers point to something far more dazzling — De Beers is set to host a major showcase in the city.

This year, De Beers Group makes its grand debut at Frieze London, marking a landmark moment where the world of natural diamonds meets the world of art. In collaboration with Frieze Masters, the brand will unveil Voyage Through the Diamond Realm — an immersive experience said to capture the mystery, beauty, and brilliance of natural diamonds like never before.

To bring this vision to life, De Beers has invited India’s leading style and art connoisseurs, including Twinkle Khanna, Ananya Panday, Sara Tendulkar, Karan Johar and many more. Known for their refined taste and appreciation of art and design, these tastemakers are the perfect ambassadors to experience natural diamonds in a whole new light — where every facet tells a story of time, pressure, and perfection.

While details remain under wraps, those close to the brand hint that the experience will be nothing short of transformative — a moment where science, storytelling, and rarity converge to celebrate nature’s most extraordinary creations.

One thing’s certain: when De Beers Group meets Frieze London, the city is bound to shine a little brighter — and perhaps, so will those boarding that flight.

Continue Reading

Trending

JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

We would like to hear from you...

GET WHATSAPP NEWS ALERTS

0
Would love your thoughts, please comment.x
()
x