Diamonds for All
Diamonds for All
Business

Diamonds for All

Pennews

At a time when even vegetables have become unaffordable for the Aam Aadmi, diamonds for all may sound incredible. But that is what reports tell you. Simply put it is a monthly instalment scheme. But not run by fly by night operators. It is a scheme in which your money is not at risk, no chance of organisers running away with cash.

It is a Systematic Investment Plan (SIP), under Indian Commodity Exchange (CEX), approved by SEBI: World’s first diamond trading bourse. As per the present plans by investing Rs.900 per month for two and half years you can own world quality diamond. The modus operandi is almost like buying mutual funds and gold funds through SIP route. Diamond through SIP is Indian innovation, for the first time in the world. Perhaps, a scheme to take advantage of Indian women’s familiarity with instalment schemes and love to diamonds.

The procedure to join the scheme is not very complicated. The buyer has to open account with a broker on the ICEX, complete the know your client (KYC) process, Aadhaar, Pan and all other cards from time to time the authorities may demand, and then deposit some money with the broker. The buyer should inform the broker the date of purchase of diamonds each month (in electronic form).

To begin with the trading contracts are of three sizes: 30 cents, 50 cents and 100 cents (1 carat). Just like in stock market the diamond contract will be traded like in the demat account. This enables the buyer to buy as little as one cent of the precious stone. The buyer will be able to convert the diamond held in the demat account to physical form only after accumulating 30 cents. SIPs are available for 50 cents or l carat. The ICEXwill go live next month, though mock trading has started.

30 carat diamond at present costs Rs.27, 000. To get one of that size one will have to pay Rs.900 per month for 30 months. But a word of caution! The instalment will vary according to the price of the diamond in the bourse. In case of default like shares in demat diamonds already bought will continue in the account. One can buy again. The diamonds can be sold to ICEX during the duration of theSIP at the market price. Bourse officials claim that trade will only be in natural diamonds and stones will be certified by global major De Beers for genuiness, quality, cut, polish et al., according to reports.

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