Exchange Traded Diamonds


Any thoughts?

I have to wonder that this would be extremely difficult. I think trading things off the periodic table of elements is easy; Silver, Gold, Palladium, etc. I’m doubtful they’ll be able to pull this off on a large scale with Diamonds.

standardizaton is an issue here…but i suppose to would sell only low grade diamonds here …but even still, they come in all shapes/forms…

this is just another gimmick… have a look at all the contracts tradable on the cboe/cme and there are futures for “everything”… unfortunatly most are illiquid

diamons are on the periodic table… its carbon

There must be some kind of carbon credit / diamond arbitrage opportunity there somewhere.

Or maybe it has to be synthetic exposure.

The article is about an ETF that invests in diamonds. It is not about trading diamonds on a commodities exchange!

“The Securities and Exchange Commission is reviewing a proposal to create the first diamond-backed exchange-traded fund”

This would not have the same quantity and standardization issues, since the fund would only need to appraise diamonds in its inventory. Of course, it seems like there might still be some pricing innaccuracy, since it would be difficult to get live quotes on all those diamonds at all times. If they rely on cut/clarity/color, there might still be some difference or subjectivity.