New ways to invest in gemstone jewellery
Gold and gemstone jewellery are traditionally a way of investing in products whose value does not diminish over time. Today, new forms are emerging that combine the traditional approach of investment with the technology of cryptocurrency popularized by Bitcoin and the like but without the hassle and risk.
What is Diamond-based crypto money?
This is a new initiative of the Israeli company Carats.IO and consists of offering a new digital currency backed by Diamonds. In reality, there are two proposals: a crypto money called ‘Cut’ for Diamond industry workers and ‘Carat’ for the general public, interested in investing in Diamonds but without the need to have them physically.
The “Carat” is proposed as a financial instrument capable of overcoming the volatility of the digital currencies that circulate to date, such as with Bitcoin, which was so much discussed in 2017.
And why would “Carat” be different from other cryptocurrencies?
One of its creators, Nadav Perl of Carats.IO, explained at a press conference that “the revolutionary thing about these coins is that for each one of them that is on the market, we will have a real diamond in a safe to back it up”. Indeed, the currency will be backed by diamonds between 25% and 75%, depending on its fluctuation. You can buy it with dollars or diamonds because even the least desired diamond on the market has a value.
The idea arose from the aforementioned company together with the Israeli Diamond Exchange, one of the most powerful in the world, whose headquarters is located in the city Ramat Gan, near Tel Aviv.
Investors and retailers are the potential clients of the “Carat” proposal, allowing the diversification in investments, with lower risks than those involved in Bitcoin. The new virtual currency can be purchased online, 24 hours a day, any day of the week. Operations will be approved almost simultaneously for both investment and return on investment. To carry out the investment operations, an online platform created by Carat.IO must be used, which will be available to the user from next May. “Our reference index is created from an algorithm that has 14 parameters that influence the buying and selling of these precious stones. With it we try to predict where the market will go” explained Gabriel Diament, creator of the algorithm.
The objective and interest in the idea of crypto money are to carry out transactions in a decentralized economy.
Eli Avidar, director of the Israeli Diamond Exchange, says that although they are competing with much larger companies, like some in India, which own mines and employ some 800,000 people., they have a chance. The startup believes that they have the know-how, passion and innovation to succeed. “Our advantage over our competitors in India or Belgium is that we are a flexible industry,” he told the press conference.
Crypto money
A final note. On the company’s website, they state the use of GIA certified Diamonds only.
