RAPAPORT… Diamond Standard has launched an initial $25 million offering of new diamond coins, which can be traded on the market as a regulated commodity, similarly to gold.
The company will purchase 50,000 natural, round brilliant diamonds through the Diamond Standard Exchange, which will be set into 5,000 tokens and issued at a price of $5,000 apiece. The IGI and the Gemological Institute of America (GIA) will grade the diamonds, before the IGI inspects, sorts and assembles them into transparent coins. All diamonds weigh between 0.23 and 0.75 carats, and are spread in equal value throughout the coins.
“The diamonds are purchased through a statistical sampling process, by automatically bidding on the inventory of many competitive diamond vendors, to purchase a statistically valid sample,” the Diamond Standard noted recently.
The IGI will also insert a wireless computer chip and upload the coin onto a blockchain, creating a digital token that is used to transact the coins. After the initial offering, the market value of the coin will be set by buyers and sellers in the market through exchange trading, Diamond Standard noted.
Following the initial rollout, Diamond Standard will sell new coins at a small premium or discount to the market-determined price. Coin owners can sell their coins at the current market price through an exchange, or to another buyer at a mutually agreed price, the company explained.
“This partnership is a monumental step forward for the diamond industry,” said IGI North America president Avi Levy.
Image: The Diamond Standard coin. (Diamond Standard)
Source: diamonds.net Rapaport