Are Diamonds The Next Big Hard Asset Investment Opportunity? | Diamond Standard CEO Cormac Kinney

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We often discuss hard assets on this program as an investment category that can offer protection against the ravaging of purchasing power due to inflation.
Gold, silver, energy, agricultural goods, real estate & farmland are frequently mentioned -- but one we've not discussed before is diamonds.
While in total valued at more than all the silver, platinum & palladium in the world, diamonds have historically been a tricky investment due to their variance -- no two are exactly alike.
Today we learn from Cormac Kinney how his company Diamond Standard is solving that challenge by creating a regulator-approved solution that finally makes the $1.2 trillion diamond market tradeable for both institutional and retail investors.
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#diamonds #commodities #inflation
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IMPORTANT NOTE: The information and opinions offered in this video by Wealthion or its interview guests are for educational purposes ONLY and should NOT be construed as personal financial advice. We strongly recommend that any potential decisions and actions you may take in your investment portfolio be conducted under the guidance and supervision of a quality professional financial advisor in good standing with the securities industry. When it comes to investing, past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All investments involve risk and may result in partial or total loss.

[@Wealthion]

For more information on Diamond Standard's offering, go to www.wealthion.com/diamonds

[@horlle]

Hi, the link looks to not be working here.

[@rogerburn5132]

Adam First to say you have Brilliant program and Brilliant Guest talking about different topics which is Very Very interesting So Big Thanks For Your Hard Work. 👍👍👍👍

[@rogerburn5132]

Adam Your Guest is interesting But Diamonds Are Not Hard Assets like Gold and Silver. As you know the Word was on the Gold standard. And it will be probably Again. But the World Was Never been on Diamond Standard and Never Will be. Gold has been Money for the Past 5.000 years and Very popular Metal Medim of exchange and Store of value Diamonds don't have that . and central Banks keep and have Gold Reserve Not Diamonds Reserve Silver is Monetary and industrial Metal. And if you check the price of second hand Diamonds is a lot lower than New and Diamonds always have estimated prices. You don't have that with 24 carat 999.9 Pamp or other Gold bars or official Gold Coins. This Guy sounds like Crypto Exchange FTX if somebody trust him For sure that person will loose at list half of their Money - ( currency)

[@charlesbrown9213]

What happens to the price of diamonds when: a)Russia is re-integrated into global economy, as it eventually will. -- Major supply increase by a seller desperate for hard currency (USD), willing to undercut other producers on price. b)A hard recession hits. - Demand for luxury goods (including diamonds) tanks. Last question: Diamonds have been precious for centuries. Given this storied history, why have the central banks of the world never included them in their reserves? What do they know?

[@Jay-xr3sb]

You can get lab made diamonds that are the real thing for a fraction of the cost. Small diamonds are a scam and always have been, they are plentiful and low value. There secondhand market is really weak, that shows u the value.

[@Wealthion]

I would suggest you give this interview a listen with an open mind. All of those points are addressed.

[@mikehunt7030]

​@@Wealthion address them all you want! Does not change the facts!

[@Wealthion]

@@mikehunt7030 Sounds like you did not give the interview a listen

[@mikehunt7030]

@@Wealthion diamonds are a bad investment especially when the whole world's about to go in the toilet

[@Jay-xr3sb]

@@Wealthion Adam, I watched it all as I value your opinion. This was one big sales pitch full of fallacious arguments. Take lab vs natural: There are different ways to created lab diamonds, the cutting edge method cannot be detected by a jewellery store, they need a certificate and laser inscription because they are fundamentally the same thing. It has lowered the entry point...for an equivalent 4c rating vs natural. They are the same buyers getting more for less (ie. Wedding engagement). Natural buyers have gone lab grown, its getting even cheaper. Lab sellers haven't created a smaller market, outright lies. The guest says this commoditisation is a reaction (last chance) for the traditional natural sellers to prop the natural market up. Does this sound like an asset that has long term propects. Way too many risks. 'They have performed well' gives you zero data or reference points. You're a great host but too forgiving in this one. He is shilling his fund/grading service. Even if they can better track the price, why invest in something that can be printed for fun.

[@imnotbob3345]

I honestly applaud Adam for the spectrum of guests he invites - but unless this gentleman suggests buying only the largest and rarest of diamonds with storied pedigrees, I see very little worth in the asset.

[@cormackinney8281]

How will you buy and sell these large and rare diamonds? Sothebys? They charge 18% commission, each way. This diamonds commodity trades with 0.5% spread. It's interesting how people get mentally stuck in a rut.

[@Coco-yw9nf]

Wow I own NGLOY which has done poorly so far.

[@chadwickfairbanks]

Super cool concept… so thankful for entrepreneurs willing to forge ahead and create value in the marketplace… I have a renewed interest in buying diamonds now!!

[@mosessheku5696]

Hi I'm moses Julius Sheku from freetown sierra leone, west Africa,We have one of the best diamonds in the world, And my country is rich not only in minerals,but good for other investments like telecommunication, hotel and tourism,our beaches are at the coast of the Atlantic ocean.

[@robdoubleyou4918]

Q:Are diamonds the next big investment opportunity? A: Nope. Not particularly valuable rock, with manufactured demand by a cartel. Hard pass!

[@geranth]

The technology used in these products is very interesting and I'm excited to see what other applications there might be. This feels similar to the graded rare coin market which also uses a plastic slab and an embedded RFID chip. Coins also have unique imperfections that can be inspected visually and verified against images for that specific certification number. However, also like coins, I think diamonds remain an item to purchase because you enjoy and not necessarily necessarily as an investment. Thank you Adam for all the excellent content you provide:)

[@originalfred66]

Diamonds are just made of carbon, a pretty common element. I will pass.

[@georgebeck518]

You can burn them!

[@colinmcgrath7682]

Am I a sucker if I am falling for this? I have listened to many interviews with this guy and I feel I keep getting closer to dipping a toe in this space. Someone please counter with something substantial enough to snap me out of my trance.

[@RambutanAutomation]

Deep inside you know what to do. Gold has several physical/chemical fall-back qualities that makes it an incredible metal. Gold has a super-hard floor because at some low price level it's going to get scooped up by electricians chemists and anybody that wants to make a machinery/product that would last an eternity. Gold is valuable even if stripped if all its monetary/investment status. Diamonds are just shiny stones, and once out of fashion they have no floor and will drop like a rock.

[@realbigugly]

@@RambutanAutomation 👍

[@contrarian604]

This is complete bullshit, sorry. Stay far away. Diamonds are a cartel, and this is nothing but a scam to help soak up a bunch of the supply that is sitting in vaults otherwise. 'the only demand for diamonds really, is jewelery", quoting the guy at 13:25. That tells you all you need to know. Complete scam that only suckers will fall for.

[@nickgold97]

@@RambutanAutomation Isn't a commodity a commodity? Diamonds will never lose value. Lab Grown Diamonds are the pit of the industry, I suspect natural diamonds will sky rocket again and bounce back like any commodity.

[@CaryHawkins]

I'd love to hear an equally well-thought-out counter-argument to this video.

[@rosamundbeattie9417]

I have worked in the diamond trade for 25 years and have seen similar attempts to commoditise them. Diamonds are not commodities. They are not fungible. The global trade price list changes every week and is based on what is selling globally. You cannot equate diamond A being 25 points heavier than diamond B, as being (in perpetuity) the same value as B which may be a colour grade better. If the range being sold is between 0.18ct - 2.05cts, try selling a mix of varied sizes and qualities in quantities of 10 to a dealer. Hilarious.

[@cormackinney8281]

Thankfully everyone in the diamond industry believed that fungibility could not be achieved. Huge opportunity for us! Now this commodity trades on average with a 0.5% spread -- incontestable proof that we solved fungibility. And today we have approval for the commodities to settle CME Futures. The market has already agreed with us.

[@_Ekaros]

I'm really wondering about other side of this. How many of these bars or coins will exit the system? That is go on being sold retail.

[@realbigugly]

Please bring on a guest to talk about investing in Pokémon cards.

[@robdoubleyou4918]

Lol.Yeah. Poor guest choice here.

[@Yin_Esra]

From the perspective of a software engineer, this was fascinating! Implementing a system that involves Integer Non-Linear Programming into an exchange is an incredible feat of work. Hats off, this is amazing from a systems perspective!

[@anthonyjackson31]

I saw diamond standard in early 2021 and the idea is unbelievable! My company is looking at storing some of their liquidity in diamond coins in 2023. Such an exciting project. Well done Adam for bringing them on.

[@glockgopop]

No "Diamonds Are Forever" intro? Aw man...

[@JohnTaylor-ts8wk]

One point I can’t get away from… Precious metal coins and bars - gold, silver, platinum & palladium - can be melted down for other uses. I just don’t see how that level of fungibility makes sense with diamonds. Makes me think of the first fully fungible non-fungible token, with a gif of a dog chasing his tail.

[@ericknaus4998]

This was really cool! Different and fascinating - good call Adam!

[@markalexander5124]

My BS detector went off big time. I'm out.

[@texasrunner]

This video was fascinating and so worth watching, though the investment thesis may get panned I get what Diamond Standard is trying to do with diamonds, and the way the guest is commodifying the product using fintech/blockchain & making a market DOES make logical sense. That said, part of the intrinsic value of a diamond is that it’s often a financially illogical, emotionally driven purchase. This is why they’re often treasured heirlooms that people would never sell for fiat, even if they DID appreciate in value

[@CRYPTODAD7]

Can you guys build a low cost entry coin, like $1k coin even if it’s smaller or only 1 diamond?

[@nickgold97]

fr

[@camillelnaylor]

Love this ! I think its about time some price regulation came in so kudos for this idea .

[@305news]

Super educational and interesting interview. Cormack is brilliant

[@gsmith3696]

This is disappointing. You are who you associate with and this video makes me question the validity of this channel. The pitch last week of gold jewelry was a red flag and this video is the another red flag, one more and I’ll be looking elsewhere for my information.

[@Mike-fx4nu]

Now do tulips. They're very pretty and colorful and only grow at certain times of the year. They also are dry-able, you can store them in your girlfriend's diary.

[@thomasskelton1555]

What the f*** this is awesome Thank you Adam for bringing this guest on

[@j.j.l.]

FASCINATING!

[@georgechallenor3698]

I think this creates liquidity, transparency and potentially provenance of diamonds as a commodity. The problem is that once it is financialized the low correlation will disappear. It is just an anomaly now because the diamond market is not integrated into the financial system. Still there can be a lucrative on ramp period.

[@garystrand8010]

Extremely entertaining from a Quant exchange open trading perspective. I am very impressed with Cormac's high level mathematical foundation for value discovery and his presentation skills! I might purchase a Bar or a couple of Coins after the Russian 30% supply returns to the global market...need to research website. Crypto, Precious Metals and Tulips always valued in foundational FIATS! Waiting for the paint thinner to dry in the auto showroom might be an issue? 😎

[@jonathanlee5185]

Thanks, Wealthion aims to present a variety of views ~ and an episode about the Diamond trade is fresh and original.👍👍👍👍

[@sgill4833]

Diamonds are not scarce. They can be fabricated ad infinitum.

[@robdoubleyou4918]

Yeah, “hard pass” on this investment. Manufacturered demand by the cartel. No thanks.

[@grilliantideasradio4120]

I enjoyed the video and the concept. Seems many here are flat out against diamonds and are all upset that you had this interview. I say bravo Adam. Just like belly buttons, we all have opinions. Pro or con...I find it an interesting topic. Thanks for bringing investment diversity and new ideas to your channel. Many laughed at Henry Ford when he said he had an alternate to horses.

[@TSYVids]

Definitely calling BS on this guys answer to lab diamonds. Gem labs can't tell the difference between lab grown and natural, it's why they inscribe the natural ones with a laser inside to tell the difference. Basically, this guy is saying lab grown have no imperfections and therefore if a diamond is actually perfect, it must be lab grown, because nature can't do that. If that was really a differentiating factor, then labs would simply introduce imperfections into their diamonds to confound anyone. Using the laser inscription method on new diamonds also devalues all diamonds that were bought prior to laser inscription as they would be assumed to be lab grown. It's a completely fabricated market - hard pass for me.

[@lambertois11]

Gold and silver can be bought from highly reputable sources like the Canadian government mint! Silver and gold can easily be assayed. The evaluation of the quality of diamond is a lot more complex. This complexity means that the evaluation can vary depending who is doing the evaluation! I would never rely on a diamond evaluation from one person, without having an independent second evaluation.

[@KaspaStacker]

Diamonds have an unlimited supply (natural+lab), thus this is not a good investment.

[@cormackinney8281]

Then why did natural diamond go up 40% in 2021 and lab diamond went down 70%?

[@KaspaStacker]

@@cormackinney8281 Because the Fed balance sheet doubled in two years time and thus your dollar lost value. This doesn't make diamonds a good investment. Beef prices also went up 20% in 2021. Next to that automation is improving, no more manual diamond cutting. Your perfect cut might not be so rare anymore in 10 years time. Plus lab diamonds are almost identical to natural, soon you won't be able to find out the difference.

[@horlle]

The natural diamonds supply is limited, and lab grown diamonds are easy to spot and don't hold value for investments as natural diamonds do.

[@KaspaStacker]

@@horlle Lab grown diamonds is like getting ice from a freezer instead from a glacier, it is both the same. Easy to spot is with the naked eye or with a handheld diamond loupe, this is not the case anymore.

[@charlesmarshall8965]

The true value of diamonds: dime a dozen ... clearly a sales pitch. Diamonds are driven by emotions & slick advertising. Women's competitiveness with other women, drive diamonds. DeBeers controls the market, generally speaking. The true value is in emeralds rubies and sapphires ... much more rare. Diamonds are b*******. Women love 'em though. I know this because I was in the jewelry business & I got tired of being phony.

[@charlesmarshall8965]

@spilbergentexe huh?

[@drajdew1664]

Diamonds are the biggest scam on earth propelled by the brilliant Marketing of diamond companies. At the end of the day it is just a piece of rock with little industrial utility.

[@martinz6445]

Lucara Diamond

[@TeddyBess]

I suppose the world could use sharper knives. "Guns for show, knives for a pro"....

[@cottagemail4066]

LOVE Wealthion. So far I've been impressed with the couple presenters and guests. Diamond market? Seriously? Either it's hard to find guests before the Holidays or Wealthion is jumping the shark.

[@Wealthion]

Just listen with an open mind. I was skeptical, too, but found this actually pretty fascinating

[@sorrycharlie4127]

Of course you did you make money when people invest in stupid idea's!

[@DoubleOhSilver]

@@sorrycharlie4127 🙄

[@T555BIRD]

People were foolish enough to buy crpyto. Of course, those that got in early and got out early made a killing. So it will be the same when investing in diamonds. It all depends on the sales pitch.

[@firetomd]

the statement that De Beers of Anglo American doesn't hold rough back to help with the price is untrue. However it is in Anglo Americans interest to have this exchange succeed. I will say, Standard Diamond should offer more attractive ways to have these used as jewelry.

[@obbiebeal3060]

Very educational, and I am 100 % sure this topic opened the eyes of many; especially the information fom all the viewers who had knowledge of this topic.

[@bp5662]

I once had a silver dealer, who I'd already purchased hundreds of ounces from, try to push diamonds on me. It wasn't a hard push, but it was the last time I saw him. 🤔

[@michaelrodriguez3329]

Hmm ?...I wonder why ?.

[@bp5662]

@@michaelrodriguez3329 Because I chose to never contact him again after he tried to push diamonds. It was a warning to Taggart.

[@petergozinya6122]

I’m not an investor in diamonds but at least they actually exist in the real world, unlike cryptos.

[@michaelrodriguez3329]

@@bp5662 better safe than sorry

[@Bagged_UP]

@@bp5662 stunning and brave

[@danielatkinson5976]

Diamonds are one of the biggest scams of all time. Useless garbage that people pay insane prices for.

[@williammiller7362]

There are a few different verification's you can do on slabbed coins. Metal verifier, weight, size, magnet, NGC/PCGS serial numbers, etc. I'm not sure I'm sold on diamonds, but it is interesting. Baseball cards and comic books next? How about Beenie Babies and Pet Rocks?

[@win9034]

I wonder if 10,000 bids is enough and if 2 experts can have different opinions on any of the Cs?

[@valkesler9006]

Very interesting segment!

[@matthewterry3555]

"Our optimization system harmonizes characteristics" I stopped watching after he said this.

[@tj78492]

Every guest ain't worth it Adam, don't lose your credibility pushing bad advice.

[@win9034]

I wonder how much deviation there is in the statistical sample and how wide that problem is? 🤔

[@issenvan1050]

So buy from them for $5700 & sell it to a pawn shop or jeweller for $4k?

[@issenvan1050]

How rare & liquid are diamonds relative to the precious metals?

[@normal_norm2627]

Diamonds ?? Ever see the movie "Blood diamonds"? Sure it's made in hollywood but I imagine it's worse than what was portrayed. No thanks

[@realbigugly]

I recommend Uncut Gems movie.

[@markusfrey4256]

...a diamond needs to be shaped as a brilliant - this is what makes the value.

[@massonh7476]

Michael Green was INCREDIBLE yesterday! Personally this subject is less interesting to me, but Wealthion covers many subjects which is a good thing.

[@crisper1614]

So they’re like NFTs ?

[@CaryHawkins]

This is fascinating!

[@CuSTACKS]

I would buy the pendant

[@svenbadstieber3001]

Truly insightful!

[@andrewwald6504]

It's pretty obvious that Adam is getting some kind of kickback from this. You can no longer tell the difference between lab grown diamonds and earth diamonds. What are the chances there isn't significant fraud? This is worse than buying the GLD ETF thinking you own the gold.

[@issenvan1050]

Diamond stocks?

[@whodidit99]

Ever been to a high end auction? Diamond jewelry usually go for 10% or so of "appraised" value. This show is a waste of time. I'm leaving.

[@T555BIRD]

You missed the point. DTC deals in rough diamonds not jewelry diamonds.

[@_Ekaros]

What is their out flow to retailers? Isn't that what matters in the end? To me this sounds lot like physical cryptocurrency. The investment thesis sounds like money will be coming in from purely investment. Not actually transacting the product.

[@koltoncrane3099]

You should ask him and others to talk about things besides diamonds like some buy emeralds from South America. In Utah there’s exists the only mine in the entire world that has gem quality red beryls. They’re rarer then diamonds. I think I read like one thousand diamonds is found for every red beryl found. Yet I think I saw they weren’t worth more then diamonds. Probably cause no big company paid millions in ads to promote it. It’s like if you get married you culturally have to buy a diamond which was a pretty dam smart marketing plow by the diamond industry.

[@CuSTACKS]

Invested I m pleased

[@aaron159r2]

If a technology comes along that is able to synthesize larger quantities of a higher quality product, you can bet that the original producers of the technologically more primitive version of that product are going to cry "FOUL!" and try to suppress competition by creating artificial "accreditation" standards in their favor. But in reality, they have just become obsolete and have yet to accept their fate. The ability to produce synthetic diamonds, or even cheap and beautiful imitators like CZ, will push "real" (aka energetically inefficient and environmentally destructive) diamonds into the same class as tiger's paws, ivory and whale oil. Additionally, this guy's appraisal algorithm is no more creative or revolutionary than Ebay was for baseball cards and other kitschy collectables. The pushback against synthetic crystalline carbon from the 'natural' diamond industry is analogous to the artisan Luddite weavers of 1800s London that burned looms to discredit the value and capacity of higher, more consistent quality manufacturing process of automated looms. The loom made the world better clothed at lower cost. Resisting the adoption of clearly superior technology is futile and these 'natural' diamond gurus are quickly becoming irrelevant. Don't be foolish people. I don't think this guest has malintent, but I certainly don't buy his argument for the investment future of naturally mined diamonds.

[@mattanderson6672]

Interesting

[@liiviplumkvist5746]

Only diamonds, no emeralds, rubys or sapphires? How about tanzanite, bixbite or opal?

[@nunoalexandre6408]

Diamonds are girls best friends...

[@realbigugly]

Besides Chad, yeah

[@ashishgulati8697]

I don’t know why are we discussing diamonds here? Great idea, but a Very hard sell my friend in front of Gold. Not sold, sorry.

[@wernermesserer4464]

In stark contrast to gold and silver diamonds can be made in the lab.

[@horlle]

Lab diamonds are easy to detect and don't hold value as natural diamonds.

[@lopesphoto]

easy to detect how? With lab equipment? My wife has no idea if the diamond on her finger is dug out of the ground or lab grown. Either way it’s still a diamond. You just pay less for the lab grown

[@realbigugly]

@@lopesphoto I won't marry a woman who demands a natural diamond on her ring

[@bmacaz]

As a scientist, this smells like snake oil.

[@merlinwizard1000]

25th, 1 December 2022

[@cmv5572]

Give me one larger rare diamond, than a 'bar' of diamonds

[@vta70]

Not diamonds but DIAMOND HANDS! 💎👐

[@EHame]

Canalaska hit possible diamond mines 5 years ago?!

[@walterdryja5201]

😂

[@lorib5398]

I know of a diamond field for sale for $ 100,000

[@theinflationsituation8870]

SUPER INTERESTING! CUTTING EDGE GUEST!

[@gunsntokens]

Diamonds are no investment.

[@peterreit8887]

Amazing

[@williamblais1004]

Didnt ftx do the same thing?

[@realbigugly]

Ftx did a different thing

[@chadwickfairbanks]

Fuc King Awe Some !! Wow…

[@kenzeng2]

Gold(GDX) up 38% in a hiking rate environment??? Last time it happened like this was in April, and then following a -47% drop. Good luck.

[@LurchLures]

If it doesn't pay a dividend then I need to sell it to a richer optimist ( or fool ), my term for this is speculation. I don't speculate any more. So not interested in diamonds. Thanks.

[@realbigugly]

Thank you for keeping us updated on your investment strategy.

[@bobby2poops992]

Diamonds are not an investment.

[@kevinspence5093]

Diamonds is a worse investment than gold and siver.

[@michaelrodriguez3329]

Dont forget cryptos ?.

[@cormackinney8281]

Do facts matter anymore? Diamonds outperformed gold and silver by over 40% since late 2020, when this commodity was approved. Name one successful investor who is closed-minded?

[@realbigugly]

@@cormackinney8281 I'm not excited about this video, but you're right.

[@mikehunt7030]

​@@cormackinney8281 fact is trying to resell those worthless diamonds you buy you need money fast.... NEVER GOING TO HAPPEN we sell on those diamonds crap everybody knows lab grown diamonds are every bit as good and a fraction of the cost