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Hi there,
I am not sure this was posted before but in any case with the fear that I might repeat just what somebody else said I wanted to know what are the implications of opening an exchange service for rare goods such as diamonds (note the market is different than gold or silver as it is not regulated by the same principles), prices are set differently (Rappaport & Diamond Council). Diamonds were always a good investment and will remain, it's just the do's and don'ts that might prevent such a service to open?
I can tell you none of the big brands are likely to accept btc very soon no matter the industry. Money is the primary means and would stay this way for a long time because of the nitty gritty world of banking/accountancy/ledger/AR/AP, international standards plus auditing. Most big retailers CEO's and money movers still see btc as a potential bubble.
Having said that, starting with local and small businesses is the key here, you get the market cap and support the system (as idea and the truth behind it) and then when a real stable and growing market is created for btc use, move to bigger fish.
In my own world I would like to open a "diamond for btc" service such as the gold/silver ones though operating like a store too (ex bluenile). Any idea if this can be done?
In the meantime, can someone tell me if there is a good marketplace that I can sell certified diamonds on for btc without a hassle?
Thanks and good luck!
Daniel
I am not sure this was posted before but in any case with the fear that I might repeat just what somebody else said I wanted to know what are the implications of opening an exchange service for rare goods such as diamonds (note the market is different than gold or silver as it is not regulated by the same principles), prices are set differently (Rappaport & Diamond Council). Diamonds were always a good investment and will remain, it's just the do's and don'ts that might prevent such a service to open?
I can tell you none of the big brands are likely to accept btc very soon no matter the industry. Money is the primary means and would stay this way for a long time because of the nitty gritty world of banking/accountancy/ledger/AR/AP, international standards plus auditing. Most big retailers CEO's and money movers still see btc as a potential bubble.
Having said that, starting with local and small businesses is the key here, you get the market cap and support the system (as idea and the truth behind it) and then when a real stable and growing market is created for btc use, move to bigger fish.
In my own world I would like to open a "diamond for btc" service such as the gold/silver ones though operating like a store too (ex bluenile). Any idea if this can be done?
In the meantime, can someone tell me if there is a good marketplace that I can sell certified diamonds on for btc without a hassle?
Thanks and good luck!
Daniel
Hi Daniel,
I am happy about all new merchants accepting bitcoins, and especially happy about all new and creative ways which are new with bitcoins!
That said, a few thoughts about diamonds specially:
- Bitcoin (and other non-reversible methods) have a higher risk for fraud. Especially with gems and especially with diamonds this is true, gems and diamonds depend a lot on the reputation and trust between seller and buyer.
- Besides that, I see no problem in "bartering" bitcoins for diamonds. All transactions where you "pay" for goods (this is important) with bitcoin should be safe. This is quite different to selling/exchanging bitcoins for money, as you often need licences for that. I.e. being a bank or certified money something.
- Finally, I strongly suggest to read more about the whole "diamonds/gems as an investment". You gave hints with Rapaport. You will never get a decent price if you try to sell your "investment diamond" again. Real investment diamonds are six figures upwards. Most jewellers, even right where you bought your stone, won't even make you an offer. Simply because they can't pay more than, say, half of the price you paid. Nasty situation which they want to avoid.
- A great article about the inner workings of the diamond industry is here:
http://www.theatlantic.com/magazine/archive/1982/02/have-you-ever-tried-to-sell-a-diamond/304575/
Some pages long, some years old, but really eye-opening. Must-read for anyone who wants to invest time or even money into a diamond. Even "just" for jewellery. In short, "diamond invention". I consider it the largest and most advanced manipulation, if not scam, in human history.
My personal summary: I will never spend a cent for a diamond. And will try to inform others about the depth of this whole mess. I plan, however, to eventually dig out a rough diamond by myself, being a minerals collector :-)
Happy reading!
Ente
Ente, thanks for your interesting post!
To comment a bit about what you wrote:
1) Never buy a diamond from a store for investment, there are other channels. As an example, first hand buying is around 50% of retail for a certified piece, so in fact what you buy in a store is more or less double the actual value depending on quality and certification.
2) Investment diamonds are usually bought through a diamond broker that can leverage the best price and stone from all possible sources (not available to the general public) obtaining a deal usually way below the official Rappaport figures. Those diamonds will always be good for reselling as you obtain the best possible price that any jeweler will be asked as well. Difference is jewelers pay tax, store rent/mortgage, salaries etc etc. and have to make a living too.
3) The link you provided pretty much says it all but nothing especially new although still good info for people to consider, thanks !
In any case that wasn't the point...I am more interested in the technical/operational side of things, bitcoin service implementation, vendor relationship, paperwork, government approvals (if any as this is open source technology I assume there are no strict regulations for trading besides the community approval)?
I will dig deeper into this and see what I can find.
In the meantime, happy bitcoining to everyone!:)
