The most precious gem will soon join the ranks of gold and other commodities on trading screens, with the world's first exchange in physically settled diamonds set to launch in Singapore in September.
The Singapore Diamond Investment Exchange (SDiX) is bringing exchange technology to the diamond market in an attempt to create a shiny new asset class for the financial community without the need to go through private diamond brokers who have little or no regulatory oversight.
"The diamond industry primarily trades though locations where people meet and discuss price transactions ... By analogy of any stock or commodity exchange, what you see today is business to business (B2B) inventories and people trading over the counter," Alain Vandenborre, founder and chairman of Singapore Diamond Investment Exchange (SDiX) told CNBC.
But that could be a thing of the past if the SDiX is successful.
The exchange, which counts billionaire Jim Rogers as an angel investor, assembles baskets of lab-graded diamonds as well as single stones for accredited traders and investors. The diamonds are priced at the equilibrium of market supply and demand at any particular time; supply of the stones will be initially provided by India's Bharat Diamond Bourse.
The exchange's features include a real-time price discovery mechanism and a trading engine that can match more than 500,000 transactions per second. The platform is reportedly the first of its kind globally and differs from existing systems like the Singapore Diamond Exchange, which only allows individual investors to buy diamonds, not trade them.
"This will be the first global commodity exchange concentrated on one asset but trading globally," Vandenborre said.