|Russian diamond mining company Alrosa is reportedly in talks with the Moscow Exchange with the aim of giving investors the opportunity to invest in futures contracts in diamonds, says Sputnik.com, reporting on an article posted by the Russian news agency RBK.
Alrosa plans to offer futures contracts in near colorless or faint yellow diamonds, with a weight of 0.5 - 0.59 carats (5.2 mm diameter) or 1-1.49 carats (6.5-7.5 mm diameter), according to a statement by Alrosa spokesman Aleksandr Tikhomirov to RBK, as reported by the news source.
Tikhomirov explains that investors will be able to buy futures backed by 1/100 of a diamond of the various weights; for example, for a one carat diamond valued at around US$8,000, futures in 1/100 of the stone will cost about US$80, while 1/100 of a 0.5 carat diamond valued around US$2,500, will be US$25.
Head of the commodities trading department of the Moscow Exchange Mihail Orlenko, reportedly told RBK that the option could work if Alrosa is prepared to act as market maker, and maintain the liquidity of the instrument on the market."Trading diamonds on the exchange could appeal to private investors seeking a new instrument for investment, and jewelers," said Orlenka, as quoted by the news source.