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Diamonds Are Forever, And Can Now Be Traded Online Too


davidpatricks
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I've just read an interesting article on Google news.

The article is called Diamonds Are Forever, And Can Now Be Traded Online Too.

 

To give a brief description, the article is about a new Belgian based company called DODAQ (not too sure what it stands for) that created an online trading platform for polished certified diamonds. From what I gather, all transactions are settled in cash solving many problems inherent in the diamond industry such as liquidity and trust.

 

Having some experience in Finance and Commodity markets, I find this concept mind-blowing and revolutionizing! I am eager to see what will become of this 6 months from now...

 

I even found a ''dodaq video'' which I find very clever and you can visit their website at http://www.dodaq.com

 

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I've just read an interesting article on Google news.

The article is called <a href="http://"http://www.techcrunch.com/2008/10/21/diamonds-are-forever-and-can-now-be-traded-online-too/"" target="_blank">Diamonds Are Forever, And Can Now Be Traded Online Too</a>.

 

To give a brief description, the article is about a new Belgian based company called DODAQ (not too sure what it stands for) that created an online trading platform for polished certified diamonds. From what I gather, all transactions are settled in cash solving many problems inherent in the diamond industry such as liquidity and trust.

 

Having some experience in Finance and Commodity markets, I find this concept mind-blowing and revolutionizing! I am eager to see what will become of this 6 months from now...

 

I even found a ''dodaq video'' which I find very clever and you can visit their website at http://www.dodaq.com

 

 

I'm a finance/commodities guy too... I look at the same graphs about 20x a day ;) But honestly this is a silly endeavor. I mean perhaps 1/2ct or smaller goods can be traded as commodities to some extent, even then there are many variables that can contribute to error. I think something like this could be used as a hedge perhaps for people buying large lots of diamonds. But when you're comparing 1 diamond at a time, so many variables can shift the price +/-20%, maybe more. Averaging out 100 diamonds may make this a good idea, but buying 1 diamond at a time as a commodity makes no sense, especially when we're talking a large, high quality, rare diamond. The more rare a diamond is, the less commoditized it can be due to it's individuality which exponentially increases the error of the price in the commoditization process. When you're investing in 1 diamond, you want the best single diamond possible. It's kind of like someone who wants a rare gold coin or a rare vintage car. It becomes traded less like a commodity and more like a collectible as all the individual characteristics play a bigger and bigger role in determining it's value.

Edited by Adylon
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