Alrosa planning diamond investment market
MOSCOW, March 25, 2009 [AFNS] – Alrosa has signed an agreement with the Leader Management Company to create a market for investment diamonds in Russia.
The firms plan to create the infrastructure for the trading of more expensive polished diamonds as a marketable commodity.
“It’s an attempt to create a new class of investor who will put money into a new product, the base for which will be Alrosa’s diamond stocks,” said company president, Sergei Vybornov, at the signing ceremony on March 19.
The two firms believe there could very quickly be a market for the gems worth up to $500 million.
A investment body will create regulations for trading the diamonds with a specially set up organization to check and certify diamonds, provide insurance, banking services and loans with the diamonds serving as collateral.
However, Vybornov said there could be regulatory problems that might take a while to resolve.
Antwerp Facets News Service (AFNS).