Fancy Coloured Diamond investment scam

polygoose

This post has been deleted as the dispute has been resolved.

paddyrg

Blimey! Well at least you got a pretty rock from them, could have been nothing at all. Diamond values are tied to clarity and brilliance, colour is impurity.

polygoose

This post has been deleted as the dispute is resolved.

paddyrg

Hmmm like for like, I think you'll find more people want natural pure stones, and that they hold value better. Coloured stones are very often artificially enhanced to make them more colourful, so lower grade stones are treated and hyped. Much like pink champagne now commands a premium despite originally being an impurity which was re-marketed as premium. Funny old world.

But except as an engineering material, I find diamond somewhat overrated myself, so I'm not the most enthusiastic evaluator! It is unfortunate for you that the people whose valuations you used were the people doing the selling - it's a bit kike the jewelry stations on TV who can sell a ring "worth" £13000 for £699 - they create a false value to make it seem like you have a deal.

geordieracer

paddyrg wrote: »

But except as an engineering material, I find diamond somewhat overrated myself, so I'm not the most enthusiastic evaluator! It is unfortunate for you that the people whose valuations you used were the people doing the selling - it's a bit kike the jewelry stations on TV who can sell a ring "worth" £13000 for £699 - they create a false value to make it seem like you have a deal.

To be fair they got told off for saying it was 'Worth' that much(auction world i think) and now they use that as a starting price for their reverse auctions and dont claim that it is worth that.

sumona30

I have recently been contacted by a colored diamond specialist with similar claims.Hence I would be grateful if the name of the rogue trader be divulged.

soolin

sumona30 wrote: »

I have recently been contacted by a colored diamond specialist with similar claims.Hence I would be grateful if the name of the rogue trader be divulged.

I'm not sure that the name really matters and most dodgy companies will routinely change the name they use anyway to try and stay under the radar.

I assume you told them where to go?

paddyrg

sumona30 wrote: »

I have recently been contacted by a colored diamond specialist with similar claims.Hence I would be grateful if the name of the rogue trader be divulged.

Why is the name important? The actions are what marks a scam. Is somebody trying to sell you a product you don't understand and the only sources for valuation you have come from that person? If he said his forename was James not John, would that make a difference?

But see all the hallmarks - THEY contacted YOU, selling a complex product with promises of riches in return for an upfront investment from yourself. This is no different from the tourists who go to Thailand and meet gemstone sellers and end up buying a bag of gems worth pennies against the pounds they 'invested'.

Pollycat

Buying ordinary diamonds as an investment is a risky thing to do without specialist knowledge, speculating on 'fancy diamonds' is an even bigger minefield.

Some are heat treated (irradiated) to enhance the colour.
That's OK as long as the seller is up-front about this.

I wonder if the OP was promised natural fancy diamonds and if he was, if the diamond he was finally sent was natural or treated.

paddyrg

And even if it was, the small guy is in NO position to evaluate a diamonds value for inclusions, cut, opacity, fluorescence, etc., you need labs for that - and it is hardly difficult to invent a cool-sounding self-certification lab.

polygoose

This post has been deleted as the dispute is resolved.