Diamonds, it turns out, are not for ever. Diamond Circle Capital, a new company formed to invest in the precious stones, has put its $400m (£198m) London float on ice after investors proved reluctant to stump up cash for the novel venture.

The float had been designed to tap growing appetite for alternative investments, with hedge funds and commodities becoming mainstream and some investors being willing to put money into off-beat funds investing in football players and violins.