Fri, Aug 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Diamonds are a challenging fit for the ETF structure

Monday, November 11, 2013

Beverly Chandler, Opalesque London:

The Opalesque Hard Assets Roundtable, sponsored by Stephen Silver Fine Jewelry and Eurex, discussed the suitability of ETFs for hard asset investments, specifically the potential of a diamond ETF.

Stephen Silver, Founder, S.H. Silver Company and Stephen Silver Fine Jewelry explained that the firm had looked at the concept of a diamond ETF four or five years ago. "We didn’t do it, and we didn’t even attempt to do it because at the time I believed the diamond market would have had a couple of fundamental problems launching a successful ETF" he said.

For Silver, one of the biggest challenges at the time was liquidity. "That challenge is still present today. There are too few large cap publicly traded companies within our category to create enough liquidity. I perceive this to be a big hurdle, possibly insurmountable" he said.

Beyond that, Silver felt that if you were going to construct a diamond ETF to be like a gold ETF, standardization issues are still a major hurdle. "However, there are a few patents pending that attempt to address this issue. We’ll see how that develops" he said.

Another fundamental problem, identified by Silver, with a diamond ETF is that 85% of the diamond supply ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Institutions – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  2. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  3. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  4. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde

  5. Investors now net short S&P500 and increased Russell shorts, technicals suggest further selling[more]

    Komfie Manalo, Opalesque Asia: Market Neutral funds increased their market exposure to -1% net short from -6% net short last week, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The report also added