Cormac Kinney: Diamond Prices Rising, New Tech to Open Market for Investors

TL;DR

Diamond Standard is a company that has developed a physical commodity called diamond standard coins, which are backed by actual diamonds and associated with a blockchain token. The company aims to provide price discovery and liquidity to the diamond market through its innovative solution.

Transcript

i'm charlotte macleod with the investing news network and here today with me is cormac kinney founder and ceo of diamond standard thank you so much for joining me online today great to see you great to be with you charlotte thank you yeah great to have you on for the first time and just to start out before we get into hearing what diamond standard ... Read More

Key Insights

• ♦️ Diamond Standard aims to bring price discovery and liquidity to the diamond market through its innovative solution.
• 🏅 The diamond market has not experienced the same investment opportunities as other commodities like gold and silver, but Diamond Standard aims to change that.
• ♦️ The supply of diamonds has been affected by COVID-19 and the recent sanctions on Russia's diamond producer, leading to price increases.
• ♦️ Diamond Standard's physical commodity, backed by actual diamonds and associated with a blockchain token, offers a unique investment opportunity in the diamond industry.
• 🫰 Investor demand and the addition of diamonds to commodity indices have the potential to drive significant price increases in the future.
• ♿ Diamond Standard's future offerings include spot market trading, futures, options, and an ETF, which will provide more accessibility and liquidity to investors.

Questions & Answers

Q: How did Cormac Kinney come up with the idea for Diamond Standard?

Cormac Kinney's background in computer science and experience in building trading systems led him to discover the lack of investment opportunities in the diamond industry. He saw the potential to solve this problem using computer science and created Diamond Standard.

Q: How does Diamond Standard's physical commodity work?

Diamond Standard coins contain actual diamonds and are equal in value. The diamonds inside the coins are chosen through optimization and automated market making, ensuring that their clarity, color, and carat weight add up to be the same. The coins also have a computer chip that stores a blockchain token.

Q: How are the prices for Diamond Standard coins determined?

Diamond Standard does not set the prices for its coins. Instead, the prices are determined by the secondary market transactions. The company publishes the Diamond Standard Index, which provides the value of all Diamond Standard coins and bars based on market trades.

Q: What is the current state of the diamond market?

The diamond market has seen recent price increases due to various factors. The approval and launch of Diamond Standard's commodity, combined with the impact of COVID-19 on diamond supply, have led to a 50% increase in diamond prices in the last 18 months. The recent sanctions on Russia's largest diamond producer, Alrosa, are expected to have a significant impact on prices as well.

Summary & Key Takeaways

• Cormac Kinney, the founder and CEO of Diamond Standard, has a background in computer science and finance. He discovered the lack of investment opportunities in the diamond industry and set out to solve this problem.

• Diamond Standard offers physical diamond standard coins that are equal in value and contain actual diamonds. The coins have a wireless computer chip that stores a blockchain token, allowing for easy trading.

• The diamond market has seen a recent increase in prices due to factors such as the approval and launch of Diamond Standard's commodity, the impact of COVID-19 on diamond supply, and the sanctions on Russia's largest diamond producer.