Diamonds are an investor's best friend?
A firm is launching an ETF that holds physical diamonds. One piece of gold is the same as any other, so I get how you can create an ETF based on gold. Diamonds are not all the same (different clarity and whatever). Who would value this thing or publish the NAV? Seems pretty fishy to me.
Is this a sign that ETFs have become completely ridiculous?
http://www.indexuniverse.com/sections/news/16507-gemshares-files-for-di…
"GemShares, a Chicago-based financial firm, has put into registration a physical diamond trust that follow by eight months or so the first round of news suggesting the firm was looking to patent a process for having diamonds become tradable securities.
The GemShares Physical Diamond Trust sets out to reflect the wholesale price of diamonds included in a fungible basket—called the “GemShares Global Investment Grade Standard Diamond Basket”—minus expenses, according to the filing submitted to regulators this week.
The filing is vague on the details. While it does say that each basket will consist of three “weight classes” of diamonds—each class comprising gems that meet specific weight criteria—it doesn’t say what that criteria is or what the total weight of each basket will be."
