Here is an interesting article about diamond being perceived as a commodity. It will be interesting to see what De Beers and the industry as a whole is going to do. In my view they don't like diamond being perceived as a commodity. The industry believes diamond is different from other precious stones and metals. But you will never know. Good luck to Martin Rapaport!
(via Market Watch) Myra P. Saefong writes:
What's at stake could be the first-ever futures market for diamond trading. It's impossible, say some industry experts. Others just say it's nearly impossible.
But after more than 20-years, Martin Rapaport, publisher of the Rapaport Diamond Report -- a primary source of diamond prices for the trade, plans to make his second attempt at creating one.
"Not only is it possible to create a futures market, but we are going to do it," he said.
Back in 1982, Rapaport submitted a contract proposal to the New York Commodities Exchange for the
creation of a futures market for diamonds.
It was rejected, he said, because the "diamond industry didn't want price transparency."
Now he's writing up a new proposal, one that he expects will be ready in another year or two, though he won't specify where he'll submit it.
Rapaport's biggest setback, however, may be that he has to first convince the diamond industry that diamonds are, in fact, a commodity.
Diamonds are "definitely a commodity. You buy and sell them for cash," he said. "They're a natural resource with limited supply; they're well defined; they're certified; they're analyzed, graded, tradable around the world."
More info @ http://www.marketwatch.com/news/story/diamonds-may-have-future-commodity/story.aspx?guid=%7b9376AEDE-CB8D-4101-AC8C-CF0015191A65
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