The Diamond ETF: Momentum Builds for a New Era of Value Creation
April 02, 25
(In association with Diamond Standard) - The diamond industry is at a critical juncture - with plummeting prices, excess inventory, and the rise of lab-grown diamonds threatening the value of natural stones, as we discussed in our last article.
The solution? A Diamond ETF, led by Diamond Standard, is poised to transform natural diamonds into a premier investment asset. The response has been electric - vendors, mines and industry leaders are beginning to rally. But the clock is ticking, and the next steps will determine whether this opportunity becomes a historic turnaround or a missed chance. This is the continuation of a movement that's gaining traction—here's where we stand and what comes next.
Progress on the Horizon
Diamond Standard's ETF has secured approval to file, a monumental step toward listing on a major exchange. The target: $200 million in initial assets under management (AUM) to launch the ETF and attract institutional investors. Already, diamond vendors and mines are stepping up, committing excess inventory in exchange for ETF shares. This isn't just about clearing stock - it's about turning a liability into a catalyst for long-term value. Post-IPO, the ETF plans to acquire $3 billion in diamonds from participating vendors, signaling a seismic shift in how the industry manages supply and demand.
Yet, the finish line isn't crossed. The industry must act decisively to meet that $200 million threshold. Every vendor who joins now isn't just a participant - they're a pioneer in redefining diamonds as a financial powerhouse.
Addressing the Skeptics
Change invites questions. Some ask: Can an ETF truly stabilize prices? Will investors embrace diamonds like gold or silver? History offers answers. When gold ETFs launched in 2002, prices had languished for over a decade—yet within years, investor demand drove gold from $400 to over $3,000 per ounce today. Silver and uranium followed suit, with ETFs sparking price surges of 600% and 300%, respectively. Diamonds share the same fundamentals - scarcity, global recognition, and intrinsic value. The difference? They've lacked a vehicle for investor access - until now.
Others worry about dilution or market flooding. Here's the key: ETF-held diamonds don't return to the retail market. Investors trade shares, not stones, locking supply away and supporting price stability. This isn't a short-term fix - it's a structural shift that benefits mines, midstream players, and retailers alike.
A New Narrative for Retailers
For jewelry retailers, the ETF is more than a financial tool - it's a story. Picture this: a customer hesitates between a natural diamond and a lab-grown alternative. The retailer points out:, "Only natural diamonds are backed by global investors, underpinning their value for generations." That's not hype - it's a fact, amplified by the ETF's visibility. As investor demand grows, consumers will see natural diamonds as both a luxury and a legacy asset, distinct from the mass-produced synthetics flooding the market. This narrative doesn't require costly ad campaigns - it's driven by real-time market dynamics.
Expanding the Vision: Islamic Finance and Digital Currency Take Shape
The ETF's impact extends beyond traditional investing. In Islamic finance, where $3.5 trillion in loans rely on commodity trades, Diamond Standard's authenticated diamond commodities are gaining attention. Banks need reliable, auditable assets—diamonds fit the bill, poised to replace less practical metals like platinum. Early discussions with financial institutions suggest this could unlock billions in new demand.
Meanwhile, the Carats digital currency - backed by ETF-held diamonds - is moving from concept to reality. Unlike Bitcoin or stablecoins, Carats offer tangible value and regulatory flexibility, making them ideal for integration into social platforms and global commerce. Imagine diamonds powering digital transactions worldwide - a future where natural stones aren't just worn, but traded electronically. This isn't speculative; it's the next frontier, and the ETF is the foundation.
The Stakes Are Higher Than Ever
The diamond industry can't afford complacency. Excess inventory continues to pile up, prices remain at a 25-year low, and lab-grown diamonds erode consumer trust. Without action, bankruptcies loom. But with the ETF, the industry can flip the script - turning surplus into strength, restoring value, and protecting $1 trillion in consumer-owned diamonds and $10 billion in trade inventory. Every carat committed now multiplies in impact later.
Vendors, the process is straightforward:
Submit inventory (minimum $500,000) of polished, GIA-certified natural diamonds (0.18-2.05 carats, D-M color, Flawless-I1, VG-EX make).
Receive ETF shares at a 10% premium on wholesale value, sellable after a holding period.
Gain priority to sell up to $3 billion in diamonds post-IPO.
Co-invest 3.5% of inventory value to own a stake in the ETF manager and share in its success.
Time is of the essence. The first purchase window opens right after the IPO—those who act now secure their spot.
A Legacy in the Making
The Diamond ETF isn't just about survival - it's about resurgence. It's a chance to differentiate natural diamonds, tap into untapped markets, and cement their place in the modern economy. Gold and silver ETFs rewrote their industries' stories; now, it's diamonds' turn. The groundwork is laid, the momentum is building, and the industry's future hinges on collective action.
Be part of this transformation. Learn more at https://diamondstandard.co and explore our video series for a deeper dive.
About Diamond Standard
Thousands of investors, family offices and funds own Diamond Standard commodities, which are approved for CFTC regulated futures and now an ETF. See Wall Street Journal (2) (3), Financial Times, CNBC, Bloomberg (2) (3), Forbes and more.
To learn more about Diamond Standard please visit https://diamondstandard.co
Vendors can sell diamonds to the ETF at https://diamondstandard.co/ETF