GemShares, LLC, a pioneer in the delivery of physically-backed diamond investment products to regulated exchanges around the globe, and The NASDAQ OMX Group, Inc. today announced an agreement to develop the GemShares Global Investment Grade Standard (GIGS™) Diamond Basket Index. This transparent, rules-based index will provide a standardized pricing mechanism for valuing a diamond basket that could be used for the development of financial products.
The NASDAQ OMX Group and GemShares will develop the GemShares GIGS Diamond Basket Index to track the prices of diamonds that have met the patented standards for investment-grade certification developed by GemShares. Through this index, diamonds that have met the GIGS gemological, proportional, optical and light-behavior guidelines can be securitized for the creation of financial products to be listed and traded on regulated exchanges globally.
"The establishment of the GemShares GIGS Diamond Basket Index will lead to the securitization of diamonds by bringing a new and enhanced level of confidence through the addition of transparency and liquidity to the process of pricing these assets for investment purposes," said Dan Gramza, GemShares Partner. "This partnership is the first step toward creating a significant bridge between the financial and diamond industries that brings the benefits of investing in diamonds to investors around the globe. By opening new channels of distribution, GemShares will enable the diamond industry to reach a broader range of customers and increase revenue."
GemShares was founded in 2007 with the goal of creating a fungible global investment standard for diamonds and gemstones. GemShares was awarded a patent for the GIGS pricing mechanism in August 2012.
"NASDAQ OMX's collaboration with GemShares represents two innovators who are committed to enhancing transparency and providing investment solutions to investors," said John L. Jacobs, Executive Vice President of Global Information Services for NASDAQ OMX. "The introduction of the GIGS™ Diamond Basket Index is another indication we continuously strive to meet demand for a wide variety of investment opportunities through the design of relevant, objective indexes."