Ehud's vision for the diamond industry spanned beyond improving what currently exists.
"The future vision of diamond consumption should have three parts: […] The third venue, and the one with a growing importance, is diamonds for wealth perseveration - a tool to store value. These diamonds will be bought and treated specifically for that purpose and with a new methodology that is based on the economy of rarity. These diamonds will need to be purchased in the right part of the diamond pipeline, purchased correctly, have an accurate grading report that goes beyond the 4Cs to serve as a tool to store value and an idea of wealth preservation."
The potential of diamonds for wealth preservation has often been discussed inside and outside the diamond industry. Ehud offered a detailed look at some of the key aspects required to turn this vision into reality, in order to unlock this potential new market which, aside from a set of initiatives, has not yet taken off at scale.
He first sought to address core objections made to the very concept of diamonds being viable as investments. He believed such concerns were largely based on the lack of pricing transparency, which can lead to the mistaken belief that diamonds cannot be accurately valued.
"Many say that diamonds are not fit for wealth preservation, because their price is an "unknown." What they mean is that different retailers might price diamonds with similar or even identical 4C characteristics very differently. What these people often don't know is that the differences in price are sometimes the result of differences between the diamonds that the famous 4Cs simply don't cover. I call these characteristics "irregularities."
Transparent pricing is needed to attract investment capital. Diamond pricing is complex, and this is not going to change. As mentioned above, unlike with other commodities, each diamond is unique, presenting significant challenges to valuing diamonds as such. However, we can close the gap so that some of the similarities and dissimilarities in diamond pricing can be properly understood, quantified, and factored into a diamond price system.
This is where Mercury Crystal Clear™ comes into play…We believe that this unique approach to pricing transparency is the way to restore confidence in diamond pricing in the eyes of consumers, Wall Street investors, and diamond buyers.
Ehud shared thoughts on other key requirements to enable this new market to become reality. These insights will be shared in the following posts.
Natural Diamonds as Wealth Preservation
Crystal Clear: How Committing to the Love of Your Life Could be the Best Financial Investment You Ever Make
Symbol of Love or a Commodity Too?