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Gem's An Investors Best Friend?

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  • Description

    Purefunds CEO Paul Zimnisky on global demand for diamonds and gemstones.

  • Duration 2:23
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This transcript is automatically generated

I'm -- they say there forever.

-- firm many girls there also -- little best friend but our next guest says diamonds can also be an investor's best friend.

Polls in this key purify and CEO and the man behind -- -- one of the most anticipated ETFs of the past year joins us now.

Right well you recently -- jams that's the name of -- ETF could.

Why diamonds are people buying time things.

-- the supply demand forecast for diamonds is actually quite intriguing global.

Diamond demand growth dispose of these 6% over the next fifteen years but supplies can be less than 3% over that same period of time.

The majority of that demand has been driven by our growth middle class and China and India so this is overseas like -- Are Americans find that's the select investors are -- have a hard assets -- -- -- -- our investment goal and so -- be looking to diversify.

That portfolio on that -- it tends be high network.

Individuals buying very high cost.

When right -- -- last -- of course apps news -- this issue -- -- -- kind of thing a thing but let's talk about the fun though because in the fund basically you're not buying the actual stone right you're buying stocks of companies.

Correct the fund invests and the industry through through compensated -- minor produce diamonds or through companies that sell polished diamonds and they're the reason we did that was because diamonds can be very difficult to invest -- they lack fund's ability mean they all have different character.

This -- BC thing BC 12 clarity whatever.

RX but the miners it seems to me if you're saying there's a supply demand issue the miners are really the way to go out.

Right correct -- they have inventory.

In the ground they have rough diamonds in the gonna need to be produced.

That said they have an inventory it's it's it's very easy to to -- and put put New York to quantify what they have in the ground.

And you know -- -- definitely have operating you know margin leverage as a present -- entry.

It's faster rent costs Ehlers is not really quickly right yet Tiffany's in their sales and a Blue Nile.

That there are good margins are really under pressure on that he had these companies do well when they turn over inventory very quickly they need you know lots of transactions that take place I prefer to -- miners you know -- exposure to the retail guys are in the ETF ETF.

Jim's love the name stay cool announcement that while things are being thank you so much -- -- If you -- by the still.

That's one of the most popular people give time for any public.

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