A diamond exchange traded fund (ETF) could soon be an investor’s best friend if De Beers has any say in the matter.
The timing might not be better for a physically-backed diamond ETF. Investors seem to prefer physical investments to equities right now and commodities in general are attracting increasing interest.
Allen Seccombe for Mining MX reports that De Beers is reportedly considering a flood of requests from financial institutions to set up an investment instrument using diamonds. [Diamond Exposure For Those Who Can’t Wait.]
De Beers is considering offering ownership of its diamonds without physically taking receipt – similar to other physically-backed commodity ETFs – because much like precious metals, people view diamonds as a store of value. [Would Africa Benefit From A Diamond ETF?]