Which is the best investment option? Gold or Diamond? Almost 90% of the people will consider Gold as the best option when compared with Diamond. Why? Even though Diamond is a precious metal, it is not considered as a popular choice for investment because of the following reasons listed below:
- No transparency in pricing – When compared with Gold, the price of a diamond is not listed on the exchange. Do you know the reason for that? Because each diamond is unique and cannot be compared with another. The price of a diamond is based on the 4Cs( Color, Carat, Cut and Clarity). A better cut diamond with more clarity will have a high price when compared with a similar diamond with less clarity.
- Selling/ Trading – Whenever you need to sell a diamond, the selling process is not straightforward as many jewelry stores will not buy the diamonds back from the customers. You can get a good deal if you sell the diamond in the same place where you had bought previously. Sometimes, you may not even get 2 or 3% profit by selling the diamonds. A better option will be to place advertisements on classified websites like Sulekha, Craigslist etc.
- Returns on Investment – There is no guarantee that you will get a fixed percentage of returns every year for your investment in diamond. If you purchase a good quality precious gem, then you will get an excellent resale value.
To overcome the above challenges and to transform diamond a valuable asset like Gold, CEDEX, a blockchain based exchange exclusively for diamonds is under development. The main objective of CEDEX (Certified Blockchain Based Diamond Exchange) is to bridge the gap between the financial markets and the traditional diamond industry by transforming diamond into a new asset like Gold. CEDEX is considered as the world’s first Certified Diamond exchange. It enables the investors either to invest in single diamond or shares in a basket of diamonds like ETFs (Exchange Traded Funds). The platform is intended to be so simple and straightforward so that a beginner who doesn’t have any knowledge of diamonds can buy/sell them easily. Sounds Interesting? Check out their official whitepaper https://cedex.com/img/Whitepaper.pdf to learn more information about the technology behind CEDEX.
Before making any kind of diamond purchase, it is very important to find out whether the diamond is certified or not. GIA (Gemological Institute of America) certificate is the most popular and trusted certificate available for diamonds. If a diamond is GIA certified, then you need not worry about its quality and authenticity. CEDEX platform ensures that all the diamonds traded on this exchange are fully compliant with GIA. Also, the pricing for diamonds on CEDEX are transparent in nature as setting the benchmark value, rate etc are fully handled by the blockchain based smart contracts. So, the buyers and sellers won’t face any issues related to trust.
If someone needs to access the CEDEX platform, then they need to hold CEDEX tokens. These tokens are a special type of tokens based on the Ethereum standard that are available for sale during the token sale event. Kindly visit https://cedex.com to get the latest updates on the token sale or join the Bitcointalk Thread.