A Blog of Brilliance: Diamond Standard
Written By: Daniel Gleich
We recently sat down with Cormac Kinney, Founder and CEO of Diamond Standard.
1. Please tell us about your fund.
We have developed a way to turn diamonds into a commodity, just like gold. Diamond Standard has taken one of earth’s rarest resources and created a platform for diamonds to become investable. We are the only regulator-approved diamond commodity. How rare is that?
Before Diamond Standard, buying and selling diamonds was an enormous financial risk. Many investors came to us and said, “It’s very inconvenient for me to hold a commodity,” and so investors asked us to put this into a vehicle that an IRA could invest in.
The Diamond Standard Fund is designed to be convenient and simple. Diamond Standard helps investors access a natural resource worth more than all the world’s platinum and silver combined. We are growing rapidly!
We developed Diamond Standard coins and bars with diamonds – and the breakthrough is that every bar has equal value. They are all worth the same.
We have sold them to over 4,000 investors.
2. What is the primary goal of your company?
The mission of Diamond Standard is to unlock diamonds as a market-traded asset, for the benefit of investors. Right now, we need more physical assets in the world.
Diamonds also have this unprecedented lack of correlation with other assets. In this way, they add diversity. Diamonds are an asset that the world could benefit from.
3. Describe the ideal client that your company aims to reach.
The ideal client for our company is someone who understands the value of diversification and wants to add something unique to their portfolio.
We strive to provide our clients with a way to diversify their investments by investing in diamonds. Brilliant, right? The clients at Diamond Standard want an asset with the potential to outperform gold. Diamonds fit the bill.
Diamond Standard Inc. is financializing diamonds. We are paving the way for diamonds to become available to traders, institutions, and individual investors. That is increasing the demand for some good upside potential.
4. What benefits could diamond commodities offer in a portfolio?
There are two key benefits:
- It is a physical asset. If you own a stock or a bond, you may have a risk of default. When you own a hard commodity, you own the asset. While it does not produce a dividend, – it typically does not completely lose value, or gets locked up in a bank that fails.
- Diamond commodities provide diversification. Diamonds are not correlated to stocks or bonds, so owning them helps reduce overall portfolio risk. It is an asset that tends to perform better at times when other assets tend to perform worse, like stocks. Diversification is key.
5. How can inflation impact a retirement account?
Inflation can affect the value of a retirement account because the assets are likely not worth what they were when you originally invested in them. It is essential to hedge a retirement account against inflation and hold assets that tend to perform well.
Commodities are a timeless classic. Many people may feel we are in what is called “a commodity super cycle” where commodities for approximately 10-20 years are likely to outperform other assets.
Diamond commodities can be a brilliant way to hedge against inflation because they tend to hold their value better than cash or other assets.
6. To what do you owe your success?
I had a lot of people that helped me along the way, including the team here and throughout my career. I have been given a lot of opportunities, but I also took advantage of them. I work hard, and I do not give up.
The difference between success and failure is the person that keeps on going when failure seems inevitable; they find a way through.
For me it is that drive, and conviction - I am deeply passionate about this, and the foundation for Diamond Standard was my wife, who introduced me to diamonds.
7. What opportunities are ahead for Diamond Standard?
We will be starting to acquire diamonds from individuals. A billion households have diamonds they do not wear – whether they inherited them or otherwise.
Think about it: diamond jewelry gets passed down from generation to generation. If a particular piece of jewelry is the wrong size or not a desired style, it may sit in a closet for decades. We are going to turn that into a productive asset again, buying them back to sell to investors. I am really looking forward to unlocking that opportunity for future investors!
Diamond Standard plans to continue developing all these vehicles to have diamonds accessible to more investors.
You can visit Diamond Standard to learn how to invest in their brilliant assets.
To speak with a Self-Directed IRA Specialist about investing in alternative assets with your retirement funds, schedule a call today.
This content is for educational purposes only and is not an endorsement.
Disclaimer: All the information contained on our website is a general discussion for informational purposes only. Madison Trust Company does not provide legal, tax or investment advice. Nothing of the foregoing, or of any other written, electronic, or oral statement or communication by Madison Trust Company or its representatives, is intended to be, or may be relayed as, legal, tax, investment advice, statements, opinions, or predictions. Before making investment decisions, please consult the appropriate legal, tax, and investment professionals for advice.