Wed, May 27, 2015
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. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  2. Investing - Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds, Hedge funds buy Actavis, Valeant. ETFs join the party, The most loved biotechs of big hedge funds, Stocks to buy ... according to hedge funds, Atlantic City bond offering attracts hedge funds as buyers, Okumus Fund Management discloses huge new Ascent Capital Group stake[more]

    Hedge funds buy swathes of foreclosed subprimes, force up rents, float rent-bonds From Boingboing.com: When a giant hedge fund is bidding on all the foreclosed houses in a poor neighborhood, living humans don't stand a chance -- but that's OK, because rapacious investors make great landl

  3. Institutions - Institutional investors turn to real estate, planes, Assets at Boston’s five biggest family nonprofits rise to $3.5bn[more]

    Institutional investors turn to real estate, planes From Joins.com: The National Pension Service and domestic emerging market specialists who did not know where to invest in a low interest rate environment are turning to other investments like the blue-chip real estate market abroad.

  4. Opalesque Exclusive: A lot of hedge fund investors are beginning to recognise the need for ongoing cyber threats monitoring[more]

    Benedicte Gravrand, Opalesque Geneva: Corporate Resolutions Inc. recently formed a strategic partnership with iThreat Cyber Group. The two companies have worked together for years, assisting clients when challenging

  5. Opalesque Exclusive: BMO launches multi-strat '40 act fund[more]

    Bailey McCann, Opalesque New York: As we reach new market highs, investors are looking for a way to diversify and protect their portfolios from a potential market correction. Liquid alternatives are rapidly gaining ground as a critical tool for investors to use to mitigate downside risk. The BMO

 

banner