[GLBSE] GEM - Invest in Diamonds!!!

[c0ffer]

One pic showing some of the diamonds has been added to the original post. More to come

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[bluefirecorp]

Very very nice stones. 

Wish I had some extra bitcoins to invest into these. I can't believe how cheap wholesale diamonds are compared to the end market. I feel 'jipped' for the recent engagement ring I bought.

[OgNasty]

This fund has fallen nearly 10% and the current highest bid is a 90% drop. Are you going to provide any price support for this fund? Wouldn't repurchasing shares at a lower cost be a way to meet your goal of adding additional assets per share?

[OgNasty]

This fund has fallen nearly 10% and the current highest bid is a 90% drop. Are you going to provide any price support for this fund? Wouldn't repurchasing shares at a lower cost be a way to meet your goal of adding additional assets per share?

Altough, the USD/btc price rose about 10% the past couple days, so if a diamond is still worth about the same and a dollar is still worth about the same, then the btc/diamond price should go down 10%, right?

That doesn't answer any of my questions.

[c0ffer]

I have noticed activity in the shares even though the volume is quite low.

Although, the USD/btc price rose about 10% the past couple days, so if a diamond is still worth about the same and a dollar is still worth about the same, then the btc/diamond price should go down 10%, right?

Although we are dealing with minimal numbers right now, this makes the most logical sense. The shares were initially released with BTC at about $3. BTC has gone up about 10% but the value of the stones remains the same so it would make sense that shares might trade at the difference.

I am examining options right now for ways to increase the value of the shares.

In the long term it will be interesting to see how this progresses.

[c0ffer]

Very very nice stones. 

tyvm

... I can't believe how cheap wholesale diamonds are compared to the end market....

I wouldn't feel that way if I were you. In this form they are the elements of what could become jewelry. When you get to the stage of a final piece, there are many other elements that come into play that affect the value. If you were to weigh the gold in that ring you would find the spot value comparison to also be high. How much does silicon cost compared to chips, steel to cars, etc.

Once stones like these have found their way into a fine piece of jewelry the overall value increases and of course, you can't quantify the value of your fiance's appreciation for a nice ring

[Turbor]

What's the clarity of the diamonds ? Colour ?

[OgNasty]

Anyone wanting to buy in to this fund, please put up a bid offer on the GLBSE.

[OgNasty]

Anyone wanting to buy in to this fund, please put up a bid offer on the GLBSE.

Does this mean you did not like the answer you got, and now you are selling your shares to the highest bidder?

I still did not get an answer. Yes, I am selling sold the rest of my shares. I was anxious to get out of this.  It seems to me that it is nothing more than us paying the OP to expand his inventory.  He will issue shares until infinity and shareholders will never see a profit.

[c0ffer]

There are currently 100 shares. One share is worth one diamond, weighing 1pt. valued at $3 when issued. When the shares were issued, the ask for one share was one BTC, worth approximately the same as one of the diamonds represented in the holding.

The diamonds in the holding are still worth $3. BTC is worth more than $3 right now so if anyone else is selling shares, they are asking for a little less than 1 BTC since the dollar to BTC conversion works that way. The diamonds still weigh 1pt and there are still 100 of them in the holding.

This fund has fallen nearly 10% and the current highest bid is a 90% drop. Are you going to provide any price support for this fund? Wouldn't repurchasing shares at a lower cost be a way to meet your goal of adding additional assets per share?

It fell 10% in BTC while the value of BTC went up. Since this is an experiment in tying the value of the shares/BTC to the value of diamonds, this looks to be correct, even though the volumes are not worth mention.

For price support, the market seems to be working fine based on the initial stated objectives of tying shares/BTC to 1pt diamonds.

I have pulled my initial 1BTC ask and may list a lower offering. I may also list a higher one if the BTC/dollar conversion drops again. I may add another carat and add another 100 shares. I may be successful in turning over enough carats to switch the holdings to 2pt diamonds or better making the shares worth significantly more. There are many variables in play and that is the excitement and fun of this experiment.

Growth of the fund can also come from profitable turnover of the holding and the value of shares adjusted accordingly. I am actively pursuing this route to grow the value of the shares and the overall holdings which is to my benefit and that of shareholders. This is all a learning process and will happen over time, it is not for everyone, but clearly a winner in a lot of ways. Also, the likelihood of the holdings depreciating in dollar value is almost non-existant.

I will eventually post more details at my site on the specific status of shares, holdings, valuations, etc.

The market will also drive the price I would hope

What's the clarity of the diamonds ? Colour ?

Clarity is VS to SI 1. I am waiting to hear back on the exact colour range for the lot. Obviously VS stones are more valuable than SI and colour is a factor too. The wholesale value price quoted is an average based on the high to low of the lot. One carat of the best quality diamonds in the lot would cost more than $300, where the same weight of the lower quality ones would cost less. More details will be coming on the website soon.

[kgo]

This fund has fallen nearly 10% and the current highest bid is a 90% drop. Are you going to provide any price support for this fund? Wouldn't repurchasing shares at a lower cost be a way to meet your goal of adding additional assets per share?

If I understand the way things work, I don't want c0ffer buying shares back to keep the price at 1 BTC.  I want him buying more diamonds when the price of BTC (hopefully) hits 6.

[kgo]

Very very nice stones. 

Wish I had some extra bitcoins to invest into these. I can't believe how cheap wholesale diamonds are compared to the end market. I feel 'jipped' for the recent engagement ring I bought.

FWIW, the price of gemstones scales exponentially size.  A 1 carat diamond costs more than 100 1-pt diamonds even though the total weight is the same.  It's not like precious metals where 2 half-ounce coins are basically worth as much as a single one once coin.  You can't melt down and combine gems.

[c0ffer]

If I understand the way things work, I don't want c0ffer buying shares back to keep the price at 1 BTC.  I want him buying more diamonds when the price of BTC (hopefully) hits 6.

...

FWIW, the price of gemstones scales exponentially size.  A 1 carat diamond costs more than 100 1-pt diamonds even though the total weight is the same.  It's not like precious metals where 2 half-ounce coins are basically worth as much as a single one once coin.  You can't melt down and combine gems.

Very well said on both accounts.

The point of the shares is not to keep them at 1BTC but to increase the overall value of the holdings that the shares are tied to. The value of BTC is what makes things additionally interesting. If shares are at 1BTC, but BTC are worth $6, I would say we are all doing well

And you are correct on the exponential value side. A one carat diamond is worth significantly more than 1 carat total weight of 1pt diamonds. That was why I mentioned aiming for 2pt stones. 1ctw of 2pt stones is worth more than 1ctw of 1pt stones.


The colour range on this lot is G-H.

[Turbor]

  how much more do u have to pay for IF or VVS diamonds ? Since the stones are very small, the clarity won't be a big problem. Colour seems to be fine.

[c0ffer]

I had not looked into pricing for clarity higher than these for this holding of stones. Additions to the holding will be of a similar nature in order to keep the the shares easier to manage.

Since the value of the shares is directly tied to the actual stones, it is important to be able to keep them in an exchangeable form. This is why there is an equal number of stones for an equal number of shares. Increasing the physical holdings affects the value of the shares from both the BTC side and the potential for redeeming shares for physical goods.

Of course, any way I can find to increase the value of the holding will be explored.

[Mushroomized]

how exactly would I go about buying a share from https://glbse.com ?

[tonto]

how exactly would I go about buying a share from https://glbse.com ?

I'm curious about this as well.

[OgNasty]

how exactly would I go about buying a share from https://glbse.com ?

I'm curious about this as well.

This is how you buy shares in companies on the GLBSE.  That being said, GEM hasn't had a single trade in well over a month and I would caution investors to review the facts and think hard before investing in it.

How to Buy Shares:

1.) Sign Up and Create an Account

• open browser to https://glbse.com/client/glbse/index.html, enter a password to encrypt locally stored data, click "Go"
• You should now be in "Account Managment", click "Register New Account"
• You should now be in "Create New Account", click button "Generate new KeyPair" and enter an account name (any name will do) in "Enter a name for this account", click "Register"
• You should be back in "Account Managment" and see the newly created account. Click the "Use" button next to the account name you entered before.

2.) Deposit funds

• On the "Account Page" (It says "Global Bitcoin Stock Exchange" as title and there's a menu on the left), you can see your bitcoin balance on the top left below the title. Lets deposit some bitcoins by choosing "Deposit Funds" from the menu.
• You're now on sub-page "Deposit Funds", click button "Get Deposit Address". You will see a bitcoin address in the text field below the button you just clicked.
• Send some bitcoins to that address and wait for (I think) 7 confirmations. Click the "refresh"-icon to the right of your balance to see if the funds have arrived. (I sometimes get an error "verification failed due to incorrect signature", also when using other menu items. Dont worry too early, it seems to reliably work on second try)
• You should now see your funds in the balance (top left)

3.) Buy shares

• Choose "buy" from the menu.
• Enter "MergedMining" into field "Enter the asset id"
• Enter "5" (for example) into field "Enter the quantity you want to buy"
• Enter "1" into field "Enter the price you are willing to pay"
• Click button "Buy"
• To verify you have bought the shares, you can choose "Portfolio" from the menu. You should also see the transaction in "Bitcoin History" and "Assets History".
• To see the status of the Asset, choose "Asset" from the menu, enter "MergedMining" into field "Enter the Asset id" and click button "Get Details"

4.) Backup the keys

The keys for an account are stored as local data somehow in your browser. Maybe not a safe enough place... to make a backup, do the following:

• go back to the "Account Managment" page by clicking button "Accounts List"
• click button "Export Accounts"
• click mouse in the big text area that appears and hit Ctrl-A or otherwise select all the text
• paste that text into a new text file and store safely somewhere

[c0ffer]

I would imagine there have been no trades because there are no shares available for trading.

There were 50 shares issued initially and only 35 were purchased, with some people buying more than one share, the number of owners is low.

The shares are directly tied to the value of a 1 point diamond with Bitcoin and when the shares came out BTC was at about $3.50. With BTC higher now the shares would be less than 1BTC (the initial offering ask) so I would guess people are just sitting on their shares and waiting.

I am investigating ways to spur some trading activity, but in the meantime I am also waiting (like many others) to see the results of GLBSE 2.0.

Of course at any time shareholders can redeem their shares for the actual diamonds themselves.

[OgNasty]

I would imagine there have been no trades because there are no shares available for trading.

I see that there are plenty of shares for sale.  No buy orders at any price though.  That is why I urged caution.