Starting a bitcoin to diamond exchange service PROS and CONS

[dino_saur]

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 saw someone posting something similar here https://bitcointalk.org/index.php?topic=74266.0 and 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  

 

[dino_saur]

Bump/anyone?

[zeocrash]

The cons are that you're funding a horribly immoral and corrupt industry that causes countless misery and death in Africa.


Not a huge fan of the diamond industry

[dino_saur]

That's a bias and there are 2 different stories here:

1) diamonds are mined all over the world, what you are talking about are the so called blood diamonds. It is like saying you won't ever do business with British people because De Beers used to hold monopoly. I've worked in this industry for a while and I can say that the regulations are more tight than any other place. Check the latest 370 deaths in India caused by the fashion retailers sweat shops...does that mean you are never buying any nikes? http://en.wikipedia.org/wiki/Kimberley_Process_Certification_Scheme
2) I know it may sound defensive but I would rather put my money in diamonds as investment rather than banks;)

[Xenophis]

The cons are that you're funding a horribly immoral and corrupt industry that causes countless misery and death in Africa.


Not a huge fan of the diamond industry

Zeo, my father has been in the jewelry industry for over 35 years, and currently owns a store that deals in fine jewerly (precious gems, yes including diamonds..) and metals, and my sister is a certified gemologist with the G.I.A who has worked at the renowned JB International, whose sole purpose is to deal in high-end diamond jewerly sales. Both of them take their business very seriously (as do many others in the business...) in regards to where their gems come from. Going through reputable dealers, getting the proper certifications, etc helps reduce the chances of being associated with conflict diamonds greatly... Of course no QC process is perfect and some will get through.. But you shouldn't generalize an industry based on a specific scenario...

That's as if people who dislike Bitcoins categorize everyone who uses as criminals because it is used for sites like Silk Road, and provide possibilities for money laundering.

As for the idea of a BTC / Diamond|Precious gems, I don't see why a service such as this won't come up in the future. Companies are already venturing into the BTC / Metals market, so it should just only be a matter of when, not if.

[dino_saur]

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)?