NEW YORK, March 7, 2022 /PRNewswire/ -- Diamond Standard®
announced today that it received regulatory approval to launch the
initial offering of the Diamond Standard Bar.
Unlocking investment demand for diamonds
Investors can purchase Diamond Standard
Bars by visiting www.diamondstandard.co. Offered initially
at $67,200, the price changes weekly
with the market value of the diamond commodities, and will continue
until $75 million worth are sold.
The Diamond Standard Bar is the world's second
regulator-approved, exchange tradable, fungible diamond commodity,
after the Diamond Standard Coin, which launched in 2021. That
offering was oversubscribed with $40
million in orders, versus a regulatory limit of $25 million. Since the launch of the Coin, their
value has appreciated by 34%, and like gold, new Coins are sold at
the market price.
The initial offering is a special one-time event. Proceeds from
the sale are used to purchase a statistical sample of natural
diamonds to discover their value along the earth's "yield curve" of
carat weight, color and clarity. This will establish the permanent
index of the content to be contained in every Bar ever made. The
diamonds will range from 0.76 to 2.05 carats each, to create Bars
worth 10 times a Coin, which contains 0.18 to 0.75 carat
stones.
Each 70mm by 35mm transparent Bar is engineered to be
equivalent, and along with the diamonds it contains a wireless
chip, enabling owners to authenticate, audit and trade this
brilliant new asset electronically. The chip holds a
regulator-licensed blockchain token, which is a receipt proving
ownership. If the commodities are held by custodians like Brinks,
owners can trade this token instantly, transferring the ownership
of their Bar.
Half the Bars are allocated to the Diamond Standard Fund, an
investment vehicle for accredited investors who prefer the
convenience of shares versus holding commodities, often in IRAs.
The fund is co-managed by Horizon Kinetics, a $7 billion investment company which manages INFL,
a NYSE-listed ETF designed to benefit from inflation.
Unlocking investment demand for diamonds
Diamonds are
the world's most valuable hard asset by weight, and with an above
ground value over $1.5 trillion,
diamonds are worth more than all the world's silver and platinum
combined. But without standardization, diamonds had been out of
reach to investors—until now.
"Investors hold at least 15% of the above ground supply of each
precious metal," said Cormac Kinney,
Founder of Diamond Standard. "Now
that they are available as a fungible Coin and Bar, we expect that
to become true for natural diamonds as well. By participating
early, you can 'Invest Brilliantly'."
Transparency and Oversight
The offerings of the
Diamond Standard Coin and Bar are overseen by the Bermuda Monetary
Authority, and they are approved as "Good for Delivery" by
CFTC-licensed markets and clearing organizations. Soon, the Diamond
Standard Coin and Bar can be delivered to settle futures contracts
on MGEX via the CME Globex platform, and options on the MIAX
Options Exchange.
Diamond Standard's internal
auditor is Deloitte. The Gemological Institute of America (GIA)
grades each diamond, and the International Gemological Institute
(IGI) reinspects each diamond upon receipt. The diamonds are
consolidated from eight gem labs around the world by Malca-Amit, a
high value logistics firm. Upon assembly in the IGI New York lab,
Brinks takes custody of the Bars, for storage in their precious
metals vault in Delaware. Bar
owners can take delivery directly, or from Brinks at any time.
The diamonds are purchased via transparent bidding on the
Diamond Standard Exchange, from over 150 diamond vendors.
Diamond Standard bids on millions of
varieties of diamonds using an automated market-making system,
raising bids until statistically valid samples of diamonds are
purchased–forcing price discovery. The geological data is public,
so anyone can verify the validity of any sample, and prove that
each Bar is equivalent.
Over time however, Diamond
Standard expects to source 85% of its diamonds from
consumers, through Diamond Standard Recycling. As part of a
commitment to ESG principles, the firm is projecting to generate a
$1 trillion "social dividend" to the
billion-plus consumers who own diamonds but are reluctant to sell
them at a great loss.
About Diamond Standard Co.
Diamond Standard Co. is the
creator of the world's only regulator-approved diamond commodities.
By unlocking diamonds as a market-traded asset, Diamond Standard helps investors to access a
natural resource currently worth $1.5
trillion – more than all the world's silver and platinum
combined. A breakthrough hard asset that can be transacted as a
blockchain token, the diamond commodity provides diversification,
potential inflation protection, and a new store of wealth for
institutional and individual investors, while bringing transparency
and efficiency to the diamond supply chain. To invest brilliantly,
visit www.diamondstandard.co.
Media Inquiries
Monika Ploc
Head of Communications
monika@diamondstandard.co
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SOURCE Diamond Standard