By Money Metals News Service

We get some great questions from customers and readers. From time to time we like to share them. Sound money and alternative investing are important subjects for the times we live in and are always worth discussing.

QUESTION: I see Money Metals recently added diamonds to the product lineup. Why would someone invest in diamonds in addition to precious metals? Diamonds aren’t money. The market is largely controlled by DeBeers. And jewelers make big margins selling them. Anyone who buys a diamond for investment has traditionally lost some real value as soon as they buy it.

ANSWER: It’s a fair question. We’ll respond to your points one by one. Diamonds are not money, that is true. They have never been a medium of exchange. But VULT is working to make diamonds more investable. The VULT diamonds do have some money-like characteristics. Diamonds have always acted as a store of value, and they are a highly concealable and portable form of wealth.

Now VULT makes them fungible and liquid. The value of each model VULT is the same, making them standardized and interchangeable. You might think of them as “diamond coins” with different denominations.

DeBeers does control large pieces of the diamond market. That does not make diamonds a poor investment. Investors can assume DeBeers is interested in both growing the market and seeing prices rise. VULT figures to be a game changer, in that exchange tradable and liquid diamonds open the market to investors of all stripes, not just the tiny handful who are willing to take their chances in the opaque market for loose diamonds.

The bid/ask spread on VULT diamonds is currently 1.5%. Assuming zero gains or losses, investors can buy the diamonds today and sell them tomorrow for 1.5% less than the purchase price. That transaction cost is exceptionally low for a tangible asset — — that’s even an even tighter spread than when buying and selling physical gold and silver!

It is also worth noting that VULT guarantees the price of the diamonds during the introductory period. Anyone buying today has 30 days to evaluate and return them for 100% of the purchase price if they choose.

Ultimately we view VULT diamonds as a great way for bullion investors who have built a meaningful holding in metals todiversify. We often have customers asking about what other tangible assets we can recommend.

Diamonds are widely valued, private and portable — which remains our focus at Money Metals. However, the market for them is driven by different fundamentals. Particularly now, as high quality stones have suddenly become investable. Learn more here…

QUESTION: How do I determine if I am eligible for some of the money in the settlement with Deutsche Bank? Physical bullion investors have been hurt by price rigging in London and in the futures market too. Any chance we can get compensation?

ANSWER: Yes, there is a chance and perhaps even a good one. The details around what qualifications will be needed to join the settlement class are still being hammered out. There are also a number of other class action suits in the works, each of which could represent investors with different qualifications.

The good news is that bullion investors have a shot at some justice. The evidence Deutsche Bank just turned over, which attorneys have characterized as a “smoking gun”, makes the case much stronger. The $100 million that Deutsche Bank is offering figures to be augmented dramatically by the other banks involved.

We intend to monitor the situation carefully and alert you to any opportunity to file a claim. We’ll also continue to report on newsworthy developments in the litigation. So please keep an eye on our coverage.

The Money Metals News Service provides market news and crisp commentary for investors following the precious metals markets.