Diamonds are famously distinctive, which prior to now has restricted their attraction as commodities. However that could be beginning to change as new know-how takes maintain. A agency working within the house says it’s pushing additional towards reworking the funding story round diamonds.

Diamond
Commonplace, which has developed a “diamond commodity”
funding providing, this week stated it has closed a $30 million
funding spherical.

The spherical was led by Left Lane Capital and Horizon Kinetics.
Extra contributors within the spherical embrace Gaingels and
Republic.co.

The fundraising program got here after the group launched the
Diamond Commonplace Fund, enabling traders to allocate to diamonds
by way of shares, slightly than holding bodily diamonds straight.
Prior to now, the precise qualities of diamonds – each certainly one of
them is totally different – has tended to make it exhausting to deal with them as
an homogenous asset class, corresponding to gold. Diamond Commonplace is
utilizing know-how from the cryptocurrency and blockchain house to
drive improvement (see
an interview right here).

In September 2021, the agency introduced that it had new
headquarters on Fifth Avenue, New York – overlooking the
metropolis’s diamond district and close to the Gemological Institute of
America. Final yr it additionally introduced that agreements had been in
place to develop diamond futures supplied by MGEX™ through the CME
Globex® platform, and choices through MIAX™.

Diamond Commonplace stated that globally, the diamond sector is value
$1.2 trillion – greater than all of the world’s silver and platinum
mixed.

“Following 20 per cent returns final yr, the Diamond Commonplace
Coin has continued to generate a constructive return this yr, whereas
the S&P 500 is down 14 per cent and bitcoin is down 50 per
cent. Traders want a brand new uncorrelated asset class, and this
capital will allow us to extend capability and increase our
choices,” Cormac Kinney, founder and CEO of Diamond Commonplace,
stated.