Are diamonds replacing gold investments?

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The diamonds are believed to be the world’s greatest concentrated form of wealth by the diamond industry. Singapore Diamond Investment Exchange (SDIX) has been continuously working on making investments in diamonds easier and reliable since September 2015. Only a couple of months back, SDIX partnered with Kynetix and Everledger to introduce its block-chain based authentication and record-keeping services for trading diamonds globally.

The uniqueness of each diamond makes its value subjective and hence the least sought after commodity to invest in. However, SDIX has launched a new uniform form of diamond to take place of gold. Singapore Diamond mint has created Diamond Bullion. It is a collection of investment grade diamond with denominations between USD 100,000 and USD 200,000.

The prices, authenticity and exchange trading can be quickly assessed by a chip that is attached to a credit card type device in which the diamonds are stored. The International Institute of Diamond Grading and Research (IIDGR), part of the Anglo American De Beers Group has also created a mark on the Diamond Bullion, providing additional guarantee of value.

De Beers has been progressing into the diamond trading business for a long time now. It started with trading rough diamonds online through auctions in 2008. In June this year, they also started trading polished stones. They have been leaders in equipment that grade and authenticate diamonds.

According to Knight Frank Luxury Investment Index (KNFLII), an index that tracks price growth of luxury sectors, listed jewelry on the top. The prices rose 4% for the luxury jewelry sector in the year to the second quarter of 2017. There has been a high regards in terms of buying jewelry as it has becomes an integral part of your portfolio.

Diamonds have a touch of uniqueness and major diamond reserves facing extinction, investing in them have been a more attracting opportunity for investors, traders and HNIs.

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