GemShares is seeking patent to turn diamonds into tradable securities, writes Jason Zweig for the Wall Street Journal.

The Chicago-based financial firm created an index or benchmark "basket" for diamonds, the story reads.

The firm arranged the diamonds in 10 layers of comparable quality. The most expensive will be at the top, while the cheapest is at the bottom.

Andrew Feldman of GemShares said that by giving precise definitions of the attributes of the baskets and layers, they may be able to make the diamonds "fungible." To avoid the same controversy faced by gold ETFs when it comes to transparency, Feldman said they are looking into posting online images of the diamonds in the basket.  

Edited by: HFD


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