Physically Backed Diamond Investment Site Picking Up Steam In Europe, Eyeing U.S. Market

in 19-08-2014

(Correction: Two 26-carat batches in circulation, not two 2-carat batches as previously stated) By Alex Létourneau Kitco NewsTuesday August 12, 2014 11:50 AM (Kitco News) - After finding a way to turn diamonds into an affordable investment option, InvestDiamond.com has seen a growing interest in Europe as the company looks to expand to North America. Using a specific criteria for the diamonds included in their batches, InvestDiamond has managed to bypass the main issue with diamonds being turned into an investment product –which is no two diamonds are alike and therefore impossible to attribute a fixed price to a cluster of diamonds. InvestDiamond’s physically-backed batches of similar stones are then fractioned as members place bids for as little as $15 or €11, while prices are based on real-time orders on the site and the Rapaport price. The diamonds are kept in Swiss vaults in the Freeport zone, outside of the banking system. Launched Nov. 30, InvestDiamond has “two 26-carat batches that are in circulation and we’re working on getting the third one ready,” said Linnea Bruce, project manager at InvestDiamond. Based in France, InvestDiamond has been testing the waters locally before expanding its reach to other parts of the world, with the U.S. as its next main target. “Our members are mostly in Europe – we wanted to get some feedback and stability in Europe first before we transitioned to the U.S. market,” Bruce said. One way they’re looking into capturing the attention of the U.S. market is by introducing a physically backed gold, silver and investment diamond debit card. InvestDiamond’s parent company, AuCOFFRE.com, already has a physically backed gold debit card, called the Vera Carte, that it has put into circulation and used in France over the last few years.   The success of the card has led InvestDiamond to add silver and diamonds to the card as they are currently in the beta testing phase. “By year-end it should be out of beta testing and available to the general public,” Bruce said. “You can credit your account with $1,000 and have 60% backed with gold, 20% with silver and 20% with diamonds, for example.” Bruce said it can used as a regular debit card. It’s accompanied with a pin for usage and is recognized by Master Card. She also added that they hired a new card distributor, allowing the debit cards to be available for usage worldwide. “Once we get that launched in France, we’ll be looking for a partner with experience in that concept to bring it over to North America,” Bruce said. The current outlook for supply and demand metrics in the diamond space has experts pointing to diminishing supply, with a lack of new discoveries and older operations reaching the end of their mine life. On the other hand, demand is expected to continually expand as the middle classes in China and India are expected to grow rapidly over the next decade. Physically Backed Diamond Investment Site Picking Up Steam In Europe, Eyeing U.S. Market was first posted on August 19, 2014 at 3:49 pm.

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Geopolitical issues, interest rate provide support for Gold: ETFS

in 19-08-2014

In a weekly report, it said gold may surprise investors to the upside this year, due to rising geo-political risks which are likely to escalate, less than robust growth data and central banks issuing decidedly dovish messages.

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Global gold demand continues to recalibrate in Q2 2014 after an exceptional 2013

in 14-08-2014

The latest World Gold Council Gold Demand Trends report, covering the period April – June 2014, shows that global gold demand continues to demonstrate a return to long-term trends after an exceptional year in 2013. Total global gold demand in Q2 stood at 964 tonnes (t), 16% lower than the same period last year, as consumers and investors pulled back and consolidated their activity.  Global...

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Fall of fiat currencies and ultimate dominance of Gold

in 13-08-2014

Gold has mostly been irrelevant since 1971, when the U.S. finally reneged on its promise to convert U.S. dollars into gold for foreign countries. Nixon put a final end to the international gold standard, which was almost inevitable at that point.

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Gold Prices "lacklustre" but "supported" with uncertainty in Ukraine, US retail sales flat

in 13-08-2014

SPOT GOLD PRICES remained supported above $1300 on Wednesday morning in London but rallied following the US retail sales data to almost $1315, a level first reached this week on Tuesday. Asian stock markets traded slightly higher, with Japan’s Nikkei extending its recovery from two-month low. Europe followed the lead and traded also higher, with the Dax gaining 1% ahead of tomorrow’s German GDP data. US retail sales were flat in July, “pointing some loss of momentum in the economy”, according to Reuters. July’s reading was the lowest since January 2014. Silver tracked gold and after dropping below the level of $20 per ounce this morning only to recover after the retail sales data release. Less than 48 hours away from the last Silver Fix, the market is impatient to know how the new London Silver Price will affect the trading.   Brent crude fell to thirteen month low to $102.39 per barrel. In the currency markets, the Euro traded lower against the US Dollar, at $1.3352  this morning. Ukrainian Grivna fell to a record low in the country’s history amid the economic crisis and the Eastern Ukraine armed conflict. Russian humanitarian aid convoy resumed its journey to the south of Ukraine. Uncertainty remained about how the aid would be delivered, as Russia was thought to be using the convoy as an excuse for military action in Ukraine. “Precious metal markets were lacklustre as rising geopolitical tensions were countered with a slightly stronger USD,” says a commodity note from ANZ. Gold prices pushed above $1315 yesterday following the news that Ukraine would block a convoy of Russian trucks that carried humanitarian aid. In the evening investor appetite diminished and the EUR weakened against the USD. “It is clear that safe haven buying is providing a base of support, rather than a fillip for a move higher,” it adds pointing out that the outlook for prices remains subdued. Commerzbank emphasizes on its technical note that the market continues to see recovery off its 61.1% retracement at 1280. “Our outlook is bullish while above 1280... Resistance lies at 1335 ahead of the July high at 1345,” adds the German bank in Frankfurt. Gold prices at the Shanghai Gold Exchange traded at a premium of $2 per ounce above London quotes at session closing time in China. The Bank of England halved its forecast for average wage growth, to 1.25% this year. Following Bank’s governor Mark Carney speech on the quarterly inflation report, the Pound Sterling hit a ten-week low against the Dollar, pushing gold price in Sterling away from 4-session low to over £783.   Gold futures on the COMEX were little changed despite geopolitical concerns yesterday. The most active gold contract for December delivery rose 10 cents, or 0.01 percent, to settle at 1,310.6 dollars per ounce.

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Gold emerges best weekly performer amidst geo political tensions: ETFS

in 13-08-2014

ETF Securities Ltd (ETFS) in a weekly report said that gold rose 2% as investors took a more risk averse stance in the face of rising asset volatility.

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