Commodity and metal exchange traded funds (ETFs) have been sprouting up all over the world. The glittery ones in the U.S. include gold and silver. But London is about to launch a gem ETF, which will focus on diamonds. World Beta press release reports Diapason Commodities Management is aiming to raise $400 million for the first listed fund to invest in gemstones, buying only large, polished diamonds worth more than $1 million. How precious is that? The ETF will trade the stones it buys but only a 15-20 cent turnover is expected in its portfolio each year. This is like a passive open-ended ETF, much like the funds that have been born of many commodities. If this proves popular and successful, perhaps U.S. investors will see diamonds in their portfolios as well as in their jewelry.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.