Cormac Kinney slices away at issues till he will get a sensible end result…

His work contains an algorithm that quantifies the language of economic reporting… In different phrases, it might probably use the wording of earnings studies to calculate inventory market sentiment.

He created the primary warmth maps for visualizing information used within the industrial finance business. Greater than 5,000 patents have cited Cormac’s work. And with all these “firsts” to his title, it is secure to say he is aware of innovation.

We had dinner at this yr’s Stansberry Convention. There, he caught me up on his greatest innovation but…

Cormac’s new firm lets buyers purchase and commerce diamonds. At first look, that may not sound so particular. The superb half is what he has performed to an asset that is identified, most of all, for its uniqueness…

Cormac has standardized the diamond market for the primary time in historical past.

Which means an asset that was as soon as tough to personal – and commerce – is actually investable for the primary time.

Let me clarify…

Diamonds defy standardization.

4 properties decide their worth: reduce, colour, readability, and carat. However these metrics comprise an infinite array of mixtures. So no two diamonds are precisely the identical.

The retail diamond market provides to the complexity.

Sellers set costs with little transparency. A crooked vendor may inflate a value with massive fee charges… or just overstate their worth.

This drawback fascinated Cormac. How do you flip such a worthwhile pure useful resource into an investable asset?

He began an organization known as Diamond Commonplace… and located the reply.

The corporate developed an automatic program that bids on international diamond inventories. Because of this, it was in a position to gather a mountain of value information from a statistically legitimate pattern.

He then put this pattern on a curve that charts the worth of any given diamond. Test it out…

This curve reveals the shortage of any given diamond on earth. So diamond costs are not a guessing recreation.

Which means the corporate can cut up off teams of diamonds into equally valued samples. Then it “mints” these teams of diamonds by setting them into epoxy “cash.” Have a look…

Each coin incorporates a unique array of diamonds. However in complete, they internet out to the identical shortage – which means the worth of every Diamond Commonplace coin is equal.

The entire course of is audited by accounting agency Deloitte. And the Worldwide Gemological Institute grades the gems. What’s extra, a public blockchain information each transaction on {the marketplace}.

That leaves little or no alternative for value tampering. Put merely, Cormac solved the standardization drawback. Diamonds at the moment are investable.

It is a historic change. And when an asset turns into investable for the primary time, massive good points are doable…

For instance, from 1933 to 1974, it was unlawful for U.S. buyers to personal gold. Then, the Ford administration lastly reversed the Despair-era coverage. On the final day of 1974, gold turned investable once more.

The steel’s value fell at first. However in 1976, it entered a four-year bull run. Costs soared greater than 700%. Many components fueled that bull run… However new investor demand was a significant a part of it.

Now that diamonds have the inexperienced mild, it might not be lengthy earlier than historical past repeats itself.

With Cormac’s new firm, you possibly can lastly put money into diamonds simply. He has managed to create a brand new asset class. And though it is nonetheless within the early levels, that is an thrilling and uncommon factor to see on this planet of finance.

Good investing,

Sean Michael Cummings