New P2P Diamond Exchange Looks to Boost Resale Value

Polished
15/09/2016 12:55

The Hong Kong Accredited Diamond Exchange (HKADE), backed by a renowned Hong Kong serial entrepreneur Mr. Shih Wing-Ching, provides the first online peer-to-peer (P2P) global diamond marketplace with its reliable verification service and unique features for investment consideration with the support of non-physical settlement, according to a company press release. "There is a big gap between the retail price and resale price of diamonds," Mr. Shih stated. "This is because information about the diamond market is not always clear. But if we directly connect buyers and sellers through the Internet, this price gap can be greatly reduced." At present, the value of diamonds has not been fully realized, such that diamonds lose too much of their value after the initial purchase. But when the resale market is well established - so reasons HKADE - the investment and resale value as well as earnings potential are believed to increase. In turn, demand for diamonds across all markets will go up. 

P2P platforms like Airbnb and Taobao (Alibaba) bring great savings to sellers and consumers through disintermediation, yet there is little in the way of quality control outside of user recommendations. This could be a source of great concern as P2P enters the jewelry forum. To address this issue, HKADE says it, "provides rigorous verification of every traded diamond with the help of highly-trained experts and GIA equipment. The seller has an option to send the stone for verification before listing or after purchase. An index price also serves as a good online retail price reference." HKADE offers an insured "secure storage service" and says that, "Every diamond we store comes with a Safe Keeping Receipt (SKR), which can be instantly verified online as proof of asset ownership. SKRs not only includes all verification data of the stone, but also features a 360-degree video of the diamond, serving as a photo ID."