Diamonds may be a girl’s best friend, but can they be an exchange traded fund (ETF) investor’s best friend, too? While the idea of such an ETF is still in its infancy, discussions are happening now.

Since global diamond production is declining and prospects of finding new mines are slim, reports Charlotte Matthews for Business Day, some feel that such an ETF could be a real sparkler. After all, other ETFs that track gold, silver and platinum have proved to be enormously popular.

Experts at De Beers have been sought out for their expertise and knowledge, and the company is open to any proposals presented. The demand for diamonds has waned since the drop-off in consumer jewelry sales last September – around the time the markets tanked. Now the industry is looking for new ways to jump-start demand, and a diamond ETF may be just the ticket.

Although production is down and DeBeers has scaled back, production in the long-term could return to levels seen last year (between 40- and 50-million carats).

For more stories about commdoties, visit our commodity category.

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.