Singapore diamond exchange courts investors seeking diverse safe haven assets
Hong Kong businessman Simon Murray invests in diamond exchange and introduce new investment product for the rock that is ‘a girl’s best friend’
Shirley Bassey sang that “diamonds are forever” while for Marilyn Monroe they will always be “a girl’s best friend”, but the precious rock is now increasingly being seen as a commodity traded by investors in turbulent times.
The Singapore Diamond Mint Company, of which well known Hong Kong businessman Simon Murray is vice chairman, on Thursday launched a new product called the Diamond Bullion – a credit card-sized package of investment-grade diamonds in a case.
The product is exclusively listed on the Singapore Diamond Investment Exchange, of which Murray is a shareholder. While most diamonds are traded between buyers and sellers directly, the Singapore exchange is an electronic platform for trading investment-grade diamonds.
“Diamonds are the new gold as an investment product,” Alain Vandenborre, executive chairman and founder of the exchange, told the South China Morning Post on Thursday.
He said that while diamonds and gold can be used as a hedge against risks from political events and currency devaluations, only 2 per cent of diamonds globally are used for investment purposes, with the rest mainly used in jewellery manufacturing.
In contrast, only 40 per cent of gold production is for jewellery and 60 per cent is for investment.
Vandenborre said this was because there are many regulated exchanges trading gold in a transparent and liquid market, and there are now a lot of gold investment products ranging from gold bars and coins to gold futures and exchange traded funds using gold as collateral.