Info 1: diamonds definition
Info 2: how diamonds work
Info 3: diamonds vs commodities
Info 4: example of diamonds.
Opening information:
Diamonds are a simple name, which is named for one type of natural substance, which is carbon-acquired elements.
So now let’s have a look at what is diamonds, how diamonds work in the public market, and what is the difference between diamonds and commodities, finally one clear example about diamonds.
Info 1: diamonds definition
There are lots of full carbons, elements, and metals on the earth, their each of them are unique substance with unique abilities.
Among the tens and more of elements in the universe one kind of element which occupied with a cube-like atom.
However, those atoms have a high thermal connectivity, which helps to provide more than 2500 watts, and which is more powerful than any other materials such as copper, silver, iron extra…
Thermal is heat that transfers from one atom to another and so on, which means it could produce and be used for more electricity.
This carbon which is taken from the Earth and very deep with rarity makes such elements of atoms more valuable and price full assets in this world when compared to any other simple elements in land.
Moreover when people view such carbon crystals of atoms with huge value, where it’s also used in people’s lives for different purposes such as weddings, gifts, proposals extra…
Based on its supply and demands such element prices would be exchanged among the people in the world market. Here this element is what is named as diamonds. So let’s dive into how these diamonds work in the public market.
Info 2: how diamonds are involved in the public market
Diamonds do not represent any specific things or objects, instead, it’s an elements that are used to trade among the public general Investors.
Therefore any of the people who bought such elements for trade in the public market, which that element are called diamonds.
Supposedly these carbon elements, which are not traded despite their exchange using other materials of metals are not considered diamonds.
Diamonds are things that are used and taken by the land deeply under 100 feet and diamonds are included in the category of natural substance.
In the public market, natural substances are the commodities traded by millions of Investors every day in the commodities market.
Diamonds the part of the whole commodities, which are listed in the public market among the people who are allowed to trade like any other stock.
The majority of the people’s investors didn’t speculate on the diamonds, because it’s might be less liquidity when compared to any other individual stocks or Gold.
Diamonds are the ones which doesn’t refer the any taxes until such a position is sold and bought from it. It doesn’t matter how much Investors of the elements diamonds are holding for a long time as long as the Investors hold, it’s being non-taxed. Once the investors close the Investment they must pay taxes on the gain of such a position.
In the public commodities market, the diamonds are not purchased in a real physical manner, despite they are only traded through the dematerialized account in the commodities market.
But that doesn’t it couldn’t be real diamonds, it’s real but it’s only purchased and sold through the platform because the public market constructed the way it is.
Most people confuse diamonds and commodities in regulations, so let’s jump into the key difference in it anyway.
Info 3: diamonds vs commodities
The difference between diamonds and commodities is, that diamonds are the one kind of element which are yielded from the earth as a natural substance.
Any of the natural substances are not taken by anyone and are not manufactured by any particular one, which are commodities related. So diamonds are becoming the diamonds became the commodities.
Diamonds are a part of commodities, and securities are regulated by the Commodities Future Trading Commission (CFTC). So diamonds are also regulated by the CFTC in the public market.
To make you more clear about the diamonds, let’s look into one brief example below.
Info 4: example of diamonds
Say you and your friend had bought a separate type of security in the public market, which securities would be two natural substances.
You had purchased the item of metals which are yielded from under the earth, next your friend had purchased the crops which are one kind of plant-related product.
Here two of your items a natural substances, so they are included in the category of commodities, but none of the items is diamonds because diamonds are not metals it’s an element of crystal carbon.