Why are diamonds not fungible?
Assets like diamonds, land, or baseball cards are not fungible because each unit has unique qualities that add or subtract value. For instance, because individual diamonds have different cuts, colors, sizes, and grades, they are not interchangeable, so they cannot be referred to as fungible goods.
Why are diamonds not a commodity?
At first glance, diamonds have all the right ingredients for a commodity investment. They are tradable, liquid and there is a supply/demand imbalance. The only problem is that there is no institutional investment vehicle in the marketplace.
What are fungible goods?
According to Article 415 of the NAFTA, fungible goods are goods that are interchangeable for commercial purposes, and have essentially identical properties.
What’s the opposite of fungible?
Opposite of able to be substituted for something of equal value or utility. noninterchangeable. incompatible. unsubstitutable.
Why are diamonds a commodity?
Diamonds are “definitely a commodity. You buy and sell them for cash,” he said. “They’re a natural resource with limited supply; they’re well defined; they’re certified; they’re analyzed, graded, tradable around the world.”
Are diamonds commodity?
Unlike precious metals, diamonds have variety, with multiple factors like carat weight, color, and clarity. These diamonds are optimized into sets, and assembled into a physical, market-traded spot commodity. In Q1 2021, Diamond Standard Coin launched at $5,000 per coin.
What is substantial fungibility?
Finance. Fungibility is different from liquidity. A good is fungible if one unit of the good is substantially equivalent to another unit of the same good of the same quality at the same time, place, etc.
What’s another word for fungible?
What is another word for fungible?
| exchangeable | switchable |
|---|---|
| substitutable | changeable |
| convertible | swappable |
| transposable | replaceable |
| interconvertible | reciprocal |