Diamond investment scheme

[Mrlota66]

Has anyone on here heard of a company called Asia Fine Diamonds? I went to a presentation last week and they offered me an asset backed investment plan, where I invest in a "fancy coloured" diamond put it in secure storage with trust company and then after 1 year they guarantee to buy it back for the original price plus 15% or 30% if I left it in for 2 years. To be honest I was quite tempted as the guarantee was with a well known legal company in Singapore. The only thing that stopped me going ahead was the asset itself..the diamond. I have no idea how to value it! They give me projections on future growth etc and historical prices but info on the internet is a bit sketchy! If I knew the company I would probably do it because of the 15% return on my investment..

Have any users heard of this company? Is it a scam?


Thanks

Rana

 

[Tik]

Has anyone on here heard of a company called Asia Fine Diamonds? I went to a presentation last week and they offered me an asset backed investment plan, where I invest in a "fancy coloured" diamond put it in secure storage with trust company and then after 1 year they guarantee to buy it back for the original price plus 15% or 30% if I left it in for 2 years. To be honest I was quite tempted as the guarantee was with a well known legal company in Singapore. The only thing that stopped me going ahead was the asset itself..the diamond. I have no idea how to value it! They give me projections on future growth etc and historical prices but info on the internet is a bit sketchy! If I knew the company I would probably do it because of the 15% return on my investment..

Have any users heard of this company? Is it a scam?


Thanks

Rana

Be very careful if it sounds too good to be true.

 

[limster]

Now waiting for another newly registered account to post that his friend's uncle's second cousin has invested in it and is receiving regular payouts.

 

[Shion]

Too good to be true = Fake

 

[grimmjowj]

Sounds just like another other scam schemes to me, recently I had someone approaching me to buy amber (seriously they are selling tree juice now?), all with the approach of assets-backed investments. They actually have the physical stuff but the way the value vs market is probably like 200x more so basically you're paying for junk.

Payouts might be possible while commissions from getting another person in is usually paid, but this is just to gather as much money as they can and then poof, they gone your money also gone.

 

[frenchbriefs]

LOOOOOOOOOOOOOOOOOOOOOOL.



sound like the gold bar scam,buy the premium gold bar from us,one year later we promise to buy it back from u at 20 percent above valuation.6 month later the boss run road and the company declare bankrupt.

i rather buy the gold bar,at least the gold bar has value and u can recover some losses,i dunno what is a funny coloured diamond worth.

 

[frenchbriefs]

Sounds just like another other scam schemes to me, recently I had someone approaching me to buy amber (seriously they are selling tree juice now?), all with the approach of assets-backed investments. They actually have the physical stuff but the way the value vs market is probably like 200x more so basically you're paying for junk.

Payouts might be possible while commissions from getting another person in is usually paid, but this is just to gather as much money as they can and then poof, they gone your money also gone.

they going to sell the amber to jurassic park to extract dinosaur dna,then genetically engineer some dinosaur and build a theme park to open to visitors.

 

[DestinyDreamer]

smells fishy. Too good to be true.

 

[doody_]

Has anyone on here heard of a company called Asia Fine Diamonds? I went to a presentation last week and they offered me an asset backed investment plan, where I invest in a "fancy coloured" diamond put it in secure storage with trust company and then after 1 year they guarantee to buy it back for the original price plus 15% or 30% if I left it in for 2 years. To be honest I was quite tempted as the guarantee was with a well known legal company in Singapore. The only thing that stopped me going ahead was the asset itself..the diamond. I have no idea how to value it! They give me projections on future growth etc and historical prices but info on the internet is a bit sketchy! If I knew the company I would probably do it because of the 15% return on my investment..

Have any users heard of this company? Is it a scam?


Thanks

Rana

The scam is there.

My gut feel is that 1 or 2 years later, you'll be there to "execute" your guarantee to sell the diamond back to the company, but hey, the diamond isn't in the storage. That makes your guarantee worthless, even if it's by a trustworthy company. They are fully prepared to guarantee it, but you are unable to produce the diamond to fulfil your side of the deal.

 

[wahkao3]

let me teach u how to analyse this investment

they are guaranteeing an option, and this guarantee has to be backed by a crediable asset, or crediable stream of income to their books. Similar to your bank guaranteeing your savings.

ask them for their financial statements, or credit rating by big 3.
If none, ask them for what basis do they have to guarantee this

 

[wahkao3]

after 1 year they guarantee to buy it back for the original price plus 15% or 30%

wow! thats 15% return
huat liao oh!! XX risk, high return!! VoV

 

[Perisher]

Now waiting for another newly registered account to post that his friend's uncle's second cousin has invested in it and is receiving regular payouts.

You pre-empt liao... nobody would do that...

 

[Mrlota66]

15% return per year is very high.

Can you ask them why they dont keep the diamond and save themselves 15%?

Yes I asked the broker something similar and he said, like all investment companies, they grow by using other peoples money to build capital rather than their own or having to borrow at hefty rates...also they are looking for new investors to refer new clients and get money for this and he said the bank would not help them gain new clients? Seems to make sense, but I have never built a business myself so would not know if this is a typical strategy or not.

 

[Mrlota66]

let me teach u how to analyse this investment

they are guaranteeing an option, and this guarantee has to be backed by a crediable asset, or crediable stream of income to their books. Similar to your bank guaranteeing your savings.

ask them for their financial statements, or credit rating by big 3.
If none, ask them for what basis do they have to guarantee this

Thanks Wahkao you for the advice, I am in contact with the broker by email so will ask these questions and post his comments on here.

 

[Mrlota66]

The scam is there.

My gut feel is that 1 or 2 years later, you'll be there to "execute" your guarantee to sell the diamond back to the company, but hey, the diamond isn't in the storage. That makes your guarantee worthless, even if it's by a trustworthy company. They are fully prepared to guarantee it, but you are unable to produce the diamond to fulfil your side of the deal.

Thanks Doody, but I covered that myself ( same suspicion as you) The contract states I can inspect the Diamond and the GIA certificate in the storage 14 days after opening the account, (they say it can take this long to be sent from Antwerp where they keep their stock) I would have thought that if they did not honour that part of the contract I would have grounds to demand my investment returned? What do you think?

Personally I'm thinking if I do go ahead, I have already asked a friend who knows a reputable jeweller to come with me to Christie's Fine Art Storage vault in Changi to make sure the Diamond is not a fake!!

 

[wahkao3]

Thanks Wahkao you for the advice, I am in contact with the broker by email so will ask these questions and post his comments on here.

if u got the financial statements, please post it here and let me analyse for chiu

the financial statements must be audited by a crediable external auditor, cannot ownself create one without any 3rd party verification. Otherwise I also can use an excel sheet and claim I have a great business

 

[wahkao3]

Yes I asked the broker something similar and he said, like all investment companies, they grow by using other peoples money to build capital rather than their own or having to borrow at hefty rates...

"use other people money to build capital instead of borrowing" -- that sounds like equity financing, but could also mean debt financing. Need to see the contract



when you invest, do you own the company?
Or are you owning a trust that is owned by the company?
Or are you owning a promise to pay?
We need to be very clear what we are owning.


If possible also, scan a copy of the investment contract. I will break it down for u. Salesman's words cannot trust. I trust black and white more

 

[wahkao3]

Thanks Doody, but I covered that myself ( same suspicion as you) The contract states I can inspect the Diamond and the GIA certificate in the storage 14 days after opening the account, (they say it can take this long to be sent from Antwerp where they keep their stock) I would have thought that if they did not honour that part of the contract I would have grounds to demand my investment returned? What do you think?

Personally I'm thinking if I do go ahead, I have already asked a friend who knows a reputable jeweller to come with me to Christie's Fine Art Storage vault in Changi to make sure the Diamond is not a fake!!

Dont do anything yet, let me inspect the paper work and I'll advise. I Do it for free.
I am very experience in this kind of scheme.

Most of them end up in smoke.

 

[Mrlota66]

Yes I asked the broker something similar and he said, like all investment companies, they grow by using other peoples money to build capital rather than their own or having to borrow at hefty rates...also they are looking for new investors to refer new clients and get money for this and he said the bank would not help them gain new clients? Seems to make sense, but I have never built a business myself so would not know if this is a typical strategy or not.

if u got the financial statements, please post it here and let me analyse for chiu

the financial statements must be audited by a crediable external auditor, cannot ownself create one without any 3rd party verification. Otherwise I also can use an excel sheet and claim I have a great business

Thanks wahkoa, just a thought would a company that has only been trading around 3 months ( incorporated June 2015) have externally audited accounts?

 

[Mrlota66]

Dont do anything yet, let me inspect the paper work and I'll advise. I Do it for free.
I am very experience in this kind of scheme.

Most of them end up in smoke.

Thank you very much wahkoa! I will see if I can get my hands on the contract...if the broker will email it to me...would that help?