The solution to the biggest problem in diamond investment

Even as the demand for diamonds increases, one thing is clear: the supply and production of diamonds remain flat, with supply predictions decreasing by 1-2% by 2030. Along with the increasing demand since the end of 2017 henceforth, the lowest the offer will see many seeking the best possible deal as the surplus begins to dry up.

Thanks to the rules of the economy, higher demand and lower supply tend to increase prices. However, there may be more factors at play here.

Solving the problem of liquidity

On the other side of the coin, it remains to be seen what the end of the holiday season will bring to diamond sales. Liquidity generally stabilizes to normal models after the fever of the gift ends, but this brings us back to the long-standing issue of the pink diamonds investment markets.

However, solutions to the liquidity problem are difficult to find due to the natural entry barrier that is the high price of diamonds investment. Sellers of loose diamonds only worry about the price, but buyers should consider not only being able to buy the diamond for the right price, but also determining how profitable it could be and who could buy it.

This means that the most common diamond buyers will be the jewelers who will use the precious stones to create their works of art. Then they make jewelry with the diamonds and sell the resulting products to their customers.

The problem lies in the fact that jewelers usually only buy diamonds when they need them to replenish the supply. There is very little secondary market involved in the asset class other than the sales of used jewelry and the lack of opportunities to sell a particular diamond without knowing the stakeholders in your area.

So, the question is: how do argyle diamond get more investors involved?

Natural polished diamonds represent a rare resource that combines stability, scarcity and acts as a means of transferring value. However, many would be frightened by the low liquidity always present.

These three main problems make it difficult to solve the liquidity problem:

Diamonds, even with an appraisal, are very subjective to the prices of both parties. If both do not agree with the cost of the diamond, a sale cannot be made.

Diamonds have a high entry cost and ordinary investors typically build physical investments over time, rather than actively trading them.

Diamonds, like all physical assets, are difficult to move around the world. Security and local laws must be taken into account and may cause problems for investors.
Luckily, argyle diamond have found a solution.

Enter Coin, the cryptographic token backed by assets that represents 1/1000 of a carat of diamond.

With the currency, investors can not only place their funds in a stable and fungible currency, but they can also face one of the biggest obstacles to diamond investment. Since the coins are equivalent to the weight of a diamond instead of the subjective value, argyle diamond accelerate the ability to put a price on the diamond and eliminate the need for both parties to review the diamond in person.

By using the inherent liquidity within the cryptographic economy, the coins become a digital representation of a diamond, where users can easily use it to store their wealth, pay others and exchange physical diamonds from the reservation.

So, what is the best part?

While gold and silver can be traded in the commodity markets, pink diamonds are absent due to the requirement to check each and every diamond to pass. However, with the currency, investors and traders can now use the cryptographic markets in the same way they would with precious metals trading, knowing that each chip is backed by the weight of a diamond certified.

It's like going back to the gold standard on steroids. Imagine being able to pay someone in diamonds in the space of a few seconds, or earn and save a diamond you could have in your hands, or put a ring on the finger of someone you love. Imagine having a secure store of value that you can transfer anywhere in the world.

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