Formation and Valuation of the Gemstone Portfolio

The Diamore portfolio consists of carefully selected investment-grade gemstones. The portfolio strategy is focused on diversification by category and rarity to balance liquidity with the potential for value appreciation. Overall, assets fall into three main categories:

• White Diamonds – Classic colorless high-quality diamonds (color D–H, clarity IF–VS, etc.). This is the most liquid segment: pricing is more transparent due to existing market benchmarks (e.g., Rapaport Diamond Report) and a large number of market participants. White diamonds exhibit moderate long-term price growth and low volatility, making them the foundation of portfolio stability.

• Colored Gemstones – This includes natural colored stones other than diamonds: rubies, sapphires, emeralds, and others. These gems add diversification, as their markets follow unique dynamics and cycles. Large, high-quality colored stones (especially top-tier rubies and sapphires) are valued nearly as highly as diamonds and can appreciate significantly due to their rarity. However, they have lower liquidity and more subjective valuations. Diamore may include select shares of such stones to enhance portfolio returns, relying on expert gemological assessments for valuation.

• Fancy Color Diamonds – Exceptionally rare colored diamonds in vivid shades (such as pink, blue, intense yellow, etc.). These stones are extremely valuable — auction records for pink and blue diamonds reach millions of dollars per carat. They have the greatest long-term price appreciation potential due to extreme scarcity. For example, after the closure of the Argyle mine in Australia, prices for pink diamonds surged. Fancy color diamonds are included in the portfolio in limited proportions as a “venture” component — offering high potential returns while recognizing their low liquidity (hard to sell quickly) and valuation complexity.

Valuation is performed individually for each stone and then aggregated. Data is sourced from certification labs (GIA, IGI) regarding stone characteristics, supported by independent expert appraisals and, when applicable, opinions from auction houses for rare specimens. White diamonds are valued closer to wholesale (B2B) prices; colored stones are priced based on recent comparable sales; fancy color diamonds are assessed with expert valuation and conservative discounting due to their uniqueness.

The result is an estimated total portfolio value, cross-checked with current market indices and trends. For example, the global diamond index shows a steady upward trend (1–5% annually) with rare downturns and low correlation to the stock market. This supports the thesis that diamonds are a defensive asset of timeless value.

To enhance reliability, Diamore insures the portfolio (covering risks of loss or damage during storage) and regularly audits the physical presence of all diamonds with the custodian. These measures give investors confidence that the digital tokens are fully backed by real, high-quality physical assets.

Example Portfolio Structure by Gemstone Category: In a sample illustration, white diamonds make up ~50% of the value, colored gemstones ~30%, and fancy color diamonds ~20%. This structure balances security and yield: half the portfolio is allocated to the most predictable assets, while the rest is in rarer stones with growth potential. The actual proportion may vary based on market opportunities and DAO decisions regarding asset rebalancing.