Diamond ETF GEMS Hits The Market

Diamond ETF GEMS Hits The MarketFactorShares, an ETF provider that was recently acquired by GenCap Ventures, has debuted the first ever ETF to focus on diamonds and gemstones. The PureFunds ISE Diamond/Gemstone ETF (GEMS) invests in a handful of firms that produce and sell diamonds/gemstones, making this fund one of a kind. The GEMS fund has been in the works for some time now, as several issuers were jockeying to release the first Diamond fund, but FactorShares beat everyone to the punch [for more diamond news and analysis subscribe to our free newsletter].

Next comes the question of whether or not to invest. For the average retail investor, the cost will certainly be an enticing factor. Normally, diamonds come with at a hefty expense, allowing for only those with large capital bases to make a significant investment. But just as SPDR Gold Trust (NYSEARCA:GLD) broke down the barrier to entry in the gold market, so too may GEMS for diamonds. The only issue that some may take with the fund is that it does not invest in physical diamonds themselves, but rather in the producers. FactorShares also rolled out ETFs that focus on mining services and the first junior silver miner fund.

More To Come?

This product may have been first, but there is still room for someone to create a fund that offers exposure to the stones themselves. Earlier in the year, it was announced that GemShares, a Chicago-based firm, was in the process of securing a patent to create an index for diamond pricing, which could then be applied to futures contracts and ETFs. The biggest issue with this index is the fact the actual pricing of the stones. Unlike gold or silver, each diamond is unique and therefore there is no way to easily put a value on each stone [see also The Ten Commandments of Commodity Investing].

But that could all change with the new index, “in which diamonds are arranged in 10 layers of comparable quality and value from cheapest at the bottom to most expensive at the top,” writes Jason Zweig. GemShares even has a plan to displace conspiracy theories that often plague SPDR Gold Trust (NYSEARCA:GLD) and iShares Silver Trust (NYSEARCA:SLV) (along with other precious metals ETFs); they are contemplating picturing each diamond on their home website for all of the world to see. GemShares hopes to create as many tradeable units as the market can handle.

This article was originally written by Jared Cummans, and posted on CommodityHQ.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!