Fancy Coloured Diamond investment scam

Flyboy152

paddyrg wrote: »

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.

Colour diamonds especially "fancy colour" diamonds are the most sought after. Among the rarest of these, the Carbonado (black diamond), is perhaps worth many times more than that of a white diamond of a similar carat.

jimbo168

[FONT=&quot]I have had a company try to sell me Diamonds at stupid prices £10250 for a diamond that i could pick up for £1339 from the company below read below and if you still want to invest go to
[/FONT]
Leibish co at fancy diamonds net
They are a legit company
[FONT=&quot]
[/FONT]
[FONT=&quot]Diamonds as an Investment[/FONT]

• [FONT=&quot]General[/FONT][FONT=&quot]
  Some people believe that diamonds are a good investment. In our experience, this is because jewellery salesmen have repeatedly said so, usually when they are trying to close a sale. This type of opinion should be treated with caution. [/FONT]
• [FONT=&quot]Inflation[/FONT][FONT=&quot]
  Most commodities and consumer goods increase in price roughly in line with inflation, and diamonds are no exception to this. [/FONT]
• [FONT=&quot]Homogeneity[/FONT][FONT=&quot]
  Most commodities need a degree of homogeneity for an efficient market to operate. Diamonds are almost infinitely variable, by weight, colour, clarity, shape, proportion, and a few other factors. Because they are not homogeneous, diamonds are unlikely to ever become an effective investment commodity. [/FONT]
• [FONT=&quot]Terminal Market[/FONT][FONT=&quot]
  Most commodities have terminal markets, and some form of broker exchange, clearing house, and central storage facilities. This does not exist for diamonds, and is unlikely to in the future. [/FONT]
• [FONT=&quot]Efficient Market[/FONT][FONT=&quot]
  By "efficient market", we mean that the items can be bought and sold at low buy-sell spreads in almost any quantity. This does not apply to diamonds. [/FONT]
• [FONT=&quot]Sales Tax[/FONT][FONT=&quot]
  For efficient investment, the goods must not be subject to sales taxes such as Value Added Tax (VAT). Diamonds are subject to VAT in the UK, EU, and sales tax in most developed countries, therefore reducing their effectiveness as an investment medium. [/FONT]
• [FONT=&quot]Commodity[/FONT][FONT=&quot]
  We have mentioned "commodity" several times. One definition of commodity is: "An article of trade or commerce, especially an agricultural or mining product that can be processed and resold." Although diamonds qualify as a commodity under this definition, their lack of homogeneousness detracts from their inclusion as an investment commodity. [/FONT]
• [FONT=&quot]High Mark-ups[/FONT][FONT=&quot]
  Most diamonds are sold through retail shops at very high profit margins. This is partly because retail competition currently favours prime site operators paying high rents. Another reason for high mark-ups is the slow stock turn of jewellery, and the high interest cost, and security costs, of carrying large stocks. [/FONT]
• [FONT=&quot]Individuals Demand Individual Jewellery[/FONT][FONT=&quot]
  Consumers paying high prices for jewellery expect a degree of exclusivity or differentness when buying jewellery. This militates against real discount jewellery operators. [/FONT]
• [FONT=&quot]De Beers Official Policy Discourages Investment[/FONT][FONT=&quot]
  A phoney investment company calling itself De Beers Diamond Investments, Ltd was set up in 1977, selling investment diamonds by telephone. This company had no connection with the real De Beers. It was followed by about 200 more diamond investment sales companies. De Beers itself experimented with a foray into the market in 1978, but soon changed its mind, and later actively discouraged diamond investment parcels. [/FONT]
• [FONT=&quot]Certificates[/FONT][FONT=&quot]
  Diamond grading laboratories issuing certificates for diamonds go some way to making diamonds into a traceable commodity, but it still fails to obviate the infinite variety factor. Buying certified diamonds via the internet is probably of more benefit to canny consumers. [/FONT]
• [FONT=&quot]Fashion[/FONT][FONT=&quot]
  Fashion influences demand, so can cause temporary price increases, which create investment opportunities. [/FONT]
• [FONT=&quot]Top Quality[/FONT][FONT=&quot]
  There will always be more upside potential for top quality in any markets, but this can also add to the downside risk too. [/FONT]
• [FONT=&quot]Possible Investment[/FONT][FONT=&quot]
  There will always be some investment potential for diamonds, but any diamond investor would need to bear the low liquidity of diamonds in mind. In fact, low liquidity could provide patient investors with opportunities. For example, if jewellers are offered large, high quality, high value, diamonds. They may be delighted to find an investor to offload to. It may then be mutually advantageous for the jeweller to try to market the stone for the investor. [/FONT]

whistle_blower_2013

Seems over priced diamonds is common place.

Ive worked in the industry for a company called LANYARD CAPITAL

£400 Diamonds being sold as investments with price tags of £5,000 and

in some cases far more.

Beware of these investment scammers!

Their mark up on all diamonds are on average %800 to %1000.

Crooks!

Pollycat

whistle blower 2013

So you joined MSE just to 'blow the whistle' on this company....?

Are you aware that this thread is almost 2 years old?

Are you a disgruntled ex-employee?

Looked at the company website - seems diamonds (or "rare and precious gems" according to the website) are just a small part of what they deal in.

Mike2014_2

Wow @Jimbo1668 you really know your stuff.
Diamonds have indeed become a commodity very much like gold and silver. Its all about supply and demand. We have noticed the trend over the last few years; as the demand grows, the value increases. More people want diamonds, and especially by Fancy colored Diamonds, the supply decreases. I'm talking specifically about Natural Pink Diamonds, Natural Blue diamonds and Natural Green Diamonds.

Be careful who you purchase your diamond from and make sure you have a certificate from a reputable laboratory like GIA or HRD. Unfortunately I know there are many dishonest diamond dealers.

Michael Aghbashoff

Pollycat

Mike2014 wrote: »

Wow @Jimbo1668 you really know your stuff.
Diamonds have indeed become a commodity very much like gold and silver. Its all about supply and demand. We have noticed the trend over the last few years; as the demand grows, the value increases. More people want diamonds, and especially by Fancy colored Diamonds, the supply decreases. I'm talking specifically about Natural Pink Diamonds, Natural Blue diamonds and Natural Green Diamonds.

Be careful who you purchase your diamond from and make sure you have a certificate from a reputable laboratory like GIA or HRD. Unfortunately I know there are many dishonest diamond dealers.

Michael Aghbashoff

"Jimbo1668 really knows his stuff"?

I'd read Jimbo1668's post again if I were you.

Most of it is clearly copied from a website and his post is advertising a particular company (not your company).