What I don't understand about diamonds is the difference between natural diamonds and industrial diamonds. If diamonds can be manufactured for industrial use, like a diamond-toothed saw blade, and as far as I know it's hard to tell the difference from a natural diamond, why invest in naturals?
There's little difference between the two besides how they're created.
It's a great question and one that's not easily answered. Interestingly though, even if lab grown diamonds were to replace the majority of natural diamond uses, we can't be sure if that would make natural diamonds more or less valuable. Time, economics, and sentiment will tell.
It's a great question. We'll have to see how the supply and demand works out over time. One of the arguments Diamond Standard talks about is how only 1% of diamonds are held by investors compared to over 15% for palladium, platinum, and silver and over 30% for gold. If the percentage for diamonds ticks up, that change alone could more than compensate for the impact of lab grown diamonds.
Cormac Kinney responds to this question in the following Q&A. (skip to 42:45)
What I don't understand about diamonds is the difference between natural diamonds and industrial diamonds. If diamonds can be manufactured for industrial use, like a diamond-toothed saw blade, and as far as I know it's hard to tell the difference from a natural diamond, why invest in naturals?
There's little difference between the two besides how they're created.
It's a great question and one that's not easily answered. Interestingly though, even if lab grown diamonds were to replace the majority of natural diamond uses, we can't be sure if that would make natural diamonds more or less valuable. Time, economics, and sentiment will tell.
Al, we answered this question further in the response to Tim Li below. Thanks as always for your engagement!
Interesting concept. Thanks for sharing!
We think it's a fascinating concept. More than happy to share.
BTW, Bitcoin Fortress, have you watched RFK Jr's speech at Bitcoin 2023 conference?
https://www.youtube.com/watch?v=fz7FPl065II
With cheap lab grown diamonds coming to flush the market, not sure why it's a good time to go long the diamond market?
It's a great question. We'll have to see how the supply and demand works out over time. One of the arguments Diamond Standard talks about is how only 1% of diamonds are held by investors compared to over 15% for palladium, platinum, and silver and over 30% for gold. If the percentage for diamonds ticks up, that change alone could more than compensate for the impact of lab grown diamonds.
Cormac Kinney responds to this question in the following Q&A. (skip to 42:45)
https://www.youtube.com/watch?v=uoTEdTITr6o