"I began charting out my vision for a future for diamonds, in which they serve as a wealth preservation tool. It is a broad vision, and I want to start discussing how I think we should get there" Ehud wrote in a post in January 2017.
Changing perceptions such that diamonds are viewed as viable for wealth preservation, as covered in the previous post, is the first step. Reaching a critical mass of believers is the next one.
"The underlying requirement for a successful market of any kind is a belief in the traded item. Be it a soft commodity such as rice, a hard commodity like gold, or a modern commodity like art, in all cases there is a widespread acceptance of the viability of the traded item.
For diamonds to play a role as a potential wealth preservation asset, we need to reach a critical mass of people interested in diamonds, and confident that whichever diamond they buy, they will find a buyer who will purchase the asset from them, paying them a premium, just as we do already with gold, bonds, stocks, art, watches, antique cars and much more."
"This group will create resell value, which will in turn create demand and form a market. For all of this to happen, we will need a critical mass of believers who will keep the value of traded diamonds sustainable."
How can a critical mass be achieved?
"There are many steps in creating a critical mass, and they involve different components that together, like legs of a table, are all needed to maintain it."
Ehud focused in particular on three aspects – trading platforms, marketing and education.
Symbol of Love or a Commodity Too?
Natural Diamonds as Wealth Preservation
Resale Value – in Practice