GemShares Moving Forward with Physically Backed Diamond Basket

- October 2nd, 2013

Forbes reported that GemShares LLC is trying to bring the GemShares Global Investment Grade Standard (GIGS(TM)) Diamond Basket Index, a physically backed diamond investment product, closer to reality. The company recently partnered up with the NASDAQ OMX Group Inc. (NASDAQ:NDAQ) as part of its plan to do so.

Forbes reported that GemShares LLC is trying to bring the GemShares Global Investment Grade Standard (GIGS(TM)) Diamond Basket Index, a physically backed diamond investment product, closer to reality. The company recently partnered up with the NASDAQ OMX Group Inc. (NASDAQ:NDAQ) as part of its plan to do so.

As quoted in the market news:

According to GemShares, the index will track the prices of diamonds that have met the patented standards for investment-grade certification developed by the company, and, through this index, diamonds that have met the GIGS(TM) guidelines can be securitized for the creation of financial products to be listed and traded on regulated exchanges globally.

The standards and rules are the key here, as previous attempts to bring this type of product to light have been hampered with the difficulty in trying to determine a fixed value for diamonds that vary in a variety of different value-focused metrics.

‘That is one of the biggest concerns that people have had,’ said Andrew Feldman, partner at GemShares, in a telephone interview with Kitco News.

Click here to read the full Forbes report.

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