Diamonds as an Investment
At the same time that the exploration and production of rough diamonds is becoming tougher, investment in increasingly rare, high-grade diamonds has been made possible with the breakthrough Fintech platform operated by SDiX and enabling access to diamonds directly at wholesale price in a transparent and secured manner. The Diamond Bullion, traded on SDiX, removes traditional obstacles to sourcing, verification, storing and financing diamonds, which have left the financial markets community underserved. Diamonds can now be traded as a trusted commodity with market-driven prices, bringing transparency and trust to the industry.
Global geopolitical situations and greater economic uncertainty have further increased the need for real assets and alternative investments.
Diamonds are a safe-haven asset and can serve as a hedging mechanism against inflation and volatility in financial markets.
Investment demand for diamonds only represents 3% of the value of the entire diamond industry, compared to 40% for Gold and 20% for silver, presenting untapped potential.
Diamond prices have been more stable and relatively uncorrelated with other asset classes. Research shows that adding diamonds to an investment portfolio enhances the efficient frontier, increasing returns without increasing the portfolio’s risk and thus providing diversification benefits.
The Diamond Bullion is a credit card-sized package of investment grade diamonds that is highly portable. As a world-class financial product, the Diamond Bullion provides liquidity and transparency for the trading of diamonds.
Each Diamond Bullion is standardized to contain certain specifications of diamonds– ensuring its fungibility as a tradable product.
The proprietary hardware of the Diamond Bullion enables instant authentication and secure trading online anywhere in the world. Each Diamond Bullion casing is manufactured from tamper-resistant sintered zirconia with a single sapphire crystal cover.
The Diamond Bullion is an investment unit enabled by leading edge patented technology and independently tradable on the SDiX platform. Given the potential of this investment, we would strongly recommend that the Diamond Bullion is maintained as a secure unit for investment purposes.
This said, Diamond Bullion contains GIA-graded diamonds, each with a unique laser-engraved diamond grading report number. If desired, the diamonds can be removed from the Diamond Bullion casing and used or sold privately.
The Diamond Bullion will be available for distribution through select partners in Q1 2018. Please fill out our enquiry form and we will reach out to you with updates in the near future.
Singapore Diamond Investment Exchange (SDiX)
SDiX is the first of its kind globally. By bringing financial commodity exchange technology to the diamond market, SDiX has removed the friction associated with diamond investment to date and created a true price discovery mechanism for the industry as a whole, as market-driven prices are traded in an exchange environment.
The SDiX exchange ecosystem consists of a globally accessible electronic trading system, depository, vaults (custodian), settlement banks, grading lab, and exchange members.
Most existing diamond markets are B2B platforms limited to industry insiders or listing sites where suppliers list indicative selling prices that are subject to further negotiations. SDiX provides transparent price discovery and secure trading open to all members of the exchange.