Tue, Jul 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. Events – AIMA Australian Hedge Fund Forum, Sept. 16, Sydney[more]

    AIMA Australia invite you to join us at our annual Hedge Fund Forum on Tuesday 16th September 2014 at the Sofitel Sydney Wentworth. The AIMA Australian Hedge Fund Forum is a non-profit hedge fund conference organised by the industry for the industry, featuring quality Australian and internation

  2. Opalesque Exclusive: Loeb, Grantham cite growing economic concerns in letters[more]

    Bailey McCann, Opalesque New York: Hedge fund manager Daniel Loeb, head of Third Point, and Jeremy Grantham of Grantham, Mayo, Van Otterloo & Co. have both released their quarterly investor letters today. While news is positive on some fronts, and both men see pockets of opportunity, they also h

  3. Investing – Hedge funds expect Netflix earnings to catapult forward, Third Point's Loeb takes stakes in Fibra Uno, YPF, Royal DSM, Lake Capital in talks to back Engine Group[more]

    Hedge funds expect Netflix earnings to catapult forward From Investing.com: Netflix has made major strides forward in 2014 despite ongoing battles with the FCC and cable companies over the issue of net neutrality. The FCC has now received over 500,000 comments from the public on its pend

  4. Opalesque Roundtable: European family offices struggle to retain their investments in offshore hedge funds[more]

    Komfie Manalo, Opalesque Asia: The European Union’s Alternative Investment Fund Managers Directive (AIFMD) will constrain investment opportunities amidst concern a number of U.S. fund managers will stop marketing their products in the European Union under the new rule, said Valentin Bohländer fro

  5. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm