The International Institute of Diamond Grading & Research (IIDGR), part of De Beers Group, today announced it will provide diamond verification services to Singapore Diamond Mint Company’s (SDM) new investment-grade diamond product, Diamond Bullion, listed on the Singapore Diamond Investment Exchange (SDiX). The SDiX on Tuesday announced the launch of Diamond Bullion, which will be exclusively listed on the SDiX, the world's first and only electronic exchange for trading investment-grade diamonds, writes The Business Times. Diamond Bullion are sets of investment-grade polished gems, in denominations of about $100,000 and $200,000 each.
Issued by the SDM, Diamond Bullion is a portable, credit card-sized package of investment-grade polished diamonds sourced at wholesale prices, and issued in standard denominations. This listing will make it a fungible product that can be exchange-traded for instant price transparency and liquidity. Investors will be able to trade their diamond bullions globally and obtain real-time pricing data via the SDiX website or the SDM mobile app. Additionally, trades are recorded in the SDiX Electronic Central Depository, while digital ledger services will be available via blockchain in the future, SDM and SDiX said in a joint release on Tuesday. The exchange earlier this year entered into a partnership with Everledger and Kynetix.
SDM chairman, Francis Yeoh said: "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. Investment diamonds are the most concentrated form of wealth on earth, and is an investment that can be passed on to future generations for years to come." Alain Vandenborre, Founder and Executive Chairman of SDiX, and Director of SDM, said, “Until now, there was no way people could invest in diamonds in the form which is equivalent to investing in gold. A diamond has absolutely zero correlation with any other asset class, whether it’s commodities, bonds, equities. It’s a store of wealth, it’s a hedge against volatility and you need that in your portfolio.”
The gems are sourced from the wholesale market through De Beers sightholders and Alrosa PJSC, and must be in the top five levels of color and clarity, Vandenborre said in an interview with Bloomberg in Singapore on Oct. 4. IIDGR will use its proprietary diamond inscription technology to inscribe a unique identification number on the tables of each diamond used in the Diamond Bullion, which will confirm the natural origin of each diamond sealed in the bullion. Once inscribed, the diamonds are transferred into the bullion by SDM and verified by IIDGR via a Master Report that confirms the bullion meets with SDiX’s product specifications, prior to it being traded on the SDiX. Vandenborre adds, “The unique inscription that IIDGR places on every diamond inside the Diamond Bullion allows all of the diamonds to be tracked and verified, providing investors with the highest level of confidence in this revolutionary new diamond investment product.