By Stuart Wallace
Oct. 22 (Bloomberg) -- Following are comments from Victor van der Kwast, chief executive officer of the International Diamond and Jewelry Group at ABN Amro Bank NV, writing for the Antwerp World Diamond Centre.
“I do not believe there is a recovery taking place despite the strong rises in rough diamonds that have taken place since May-June.
In my opinion, this is nothing more than a stabilization process or what you might call a pre-recovery stage. I see a lot of companies in the industry trading with each other, but I do not see much new money coming in.”
“The supply of goods to the market is again becoming too large which can be seen in the $1 billion of diamonds sold by the various miners (De Beers, Rio Tinto, Alrosa, BHP, etc.) in the last sights.
Firms just need to say ‘no’ and stop buying due to an out-of-date loyalty to the diamond business, as this is not profitable and can even be risky.” Source
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FICTION ONLY
ONCE UPON A TIME IN A LAND FAR FAR AWAY, THERE WAS A
ONCE UPON A TIME IN A LAND FAR FAR AWAY, THERE WAS A
TRADE ALERT
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" Dear Lord, barry me under de chook shed
when ma time cums to meet ma maker
but in de meantime
if you have sum spare cash please send it ma way, Amen "
PS. Invoice me Lord and I will send you de cheque in de mail
~
The Assetless St Francis of Assisi prays for a miracle
~
Further proof there is more
Ass than Class
in
Australia's Diamond Ponzi Scheme
Australia's Diamond Ponzi Scheme
~
This above story applies to Antwerp only. The old money of Europe does not attract new money.
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Europe, like the USA is now suffering for giving credit and needs to consolidate after ridding themselves of their self-inflicted debt.
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The big three South American, Chinese and Indian markets are thriving all based on diamonds for cash policy only.
This is how diamonds should be transacted. Cash only no credit.
All three are developing new growth markets. They will prove to be the diamond industry's life savers unlike the stagnant USA and European markets.
*
This is in stark contrast to a prominent Australian drop shipping website dealer pretending to be diamond experts trying to raise US$5m through what they call "diamond backed securities" promising a 12% return per annum over three years.
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They are establishing a separate company in order to hide their real financial position. Debt ridden already, these incompetents still living in corporate heaven are trying to absolve themselves of debt replacing it with new debt hiding behind a thin facade of respectability by issuing a press release that really says nothing. Who are they trying to fool ? Possibly themselves first.
Europe, like the USA is now suffering for giving credit and needs to consolidate after ridding themselves of their self-inflicted debt.
*
The big three South American, Chinese and Indian markets are thriving all based on diamonds for cash policy only.
This is how diamonds should be transacted. Cash only no credit.
All three are developing new growth markets. They will prove to be the diamond industry's life savers unlike the stagnant USA and European markets.
*
This is in stark contrast to a prominent Australian drop shipping website dealer pretending to be diamond experts trying to raise US$5m through what they call "diamond backed securities" promising a 12% return per annum over three years.
*
They are establishing a separate company in order to hide their real financial position. Debt ridden already, these incompetents still living in corporate heaven are trying to absolve themselves of debt replacing it with new debt hiding behind a thin facade of respectability by issuing a press release that really says nothing. Who are they trying to fool ? Possibly themselves first.
*
Diamonds are a cash driven commodity. " No money no funny " is an expression coined by Bangkok sex workers. Do they give credit for their commodities ? As distasteful as this analogy may offend where is the difference ? Simply they do not give out until they are paid in advance.
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If these Ponzi schemers were not a credit risk why are they searching for outside investors ? Offering diamonds as security is very risky for outside buyers.They have no control.How are they protected against embezzlement and loss ?
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Why are the directors not securing their own personal assets on diamonds giving themselves the 12% per annum returns instead ? Such charitable behaviour can only be praised and admired when wishing to share their wealth with so many others surely ?
*
Virtually none of the directors are genuine diamond people with no recognisable diamond pedigrees or connections within the international diamond industry.
They are outsiders who purport to be diamond experts. This is a lie. They do not understand diamonds.
They hide behind diamond certificates as marketing tools and employ token gemmologists who know just a bit more to cover up for their own inadequacies.
*
I believe this retail website dealer is insolvent and bordering on collapse. They owe money to local equally desperate dealers they can not pay. They are trying to raise new money to pay their old debts no different to a dog chasing it's own tail.
*
No respectful diamond dealer borrows capital to buy diamonds for stock unless it's a sure thing and the debt is paid off within a week. They should already be cashed up and do business within their means without trying to appear cooperate-like and bigger than they actually are. Some of the most successful diamond merchants work out of single offices, no staff and a single leather satchel without pretence, with low profiles and while always remaining humble still manage to turnover a few million dollars a year with a minimum of fuss.
*
Recently, according to my confidential sources, their " institutional investors " withdrew their USD$250,000 because they failed to make any profits. It's a euphemistic way of saying someone is not to be trusted.
*
High overheads of office rent and staff wages is eroding any small profits made and are simply unsustainable. They are a time bomb waiting to happen.
*
Considering they have existed more than eight years now and still carry sweet f#*k all in stock why are they trying to borrow money ? supposedly now to buy diamond stock which they never wanted to carry in the past.
*
Virtually none of the directors are genuine diamond people with no recognisable diamond pedigrees or connections within the international diamond industry.
They are outsiders who purport to be diamond experts. This is a lie. They do not understand diamonds.
They hide behind diamond certificates as marketing tools and employ token gemmologists who know just a bit more to cover up for their own inadequacies.
*
I believe this retail website dealer is insolvent and bordering on collapse. They owe money to local equally desperate dealers they can not pay. They are trying to raise new money to pay their old debts no different to a dog chasing it's own tail.
*
No respectful diamond dealer borrows capital to buy diamonds for stock unless it's a sure thing and the debt is paid off within a week. They should already be cashed up and do business within their means without trying to appear cooperate-like and bigger than they actually are. Some of the most successful diamond merchants work out of single offices, no staff and a single leather satchel without pretence, with low profiles and while always remaining humble still manage to turnover a few million dollars a year with a minimum of fuss.
*
Recently, according to my confidential sources, their " institutional investors " withdrew their USD$250,000 because they failed to make any profits. It's a euphemistic way of saying someone is not to be trusted.
*
High overheads of office rent and staff wages is eroding any small profits made and are simply unsustainable. They are a time bomb waiting to happen.
*
Considering they have existed more than eight years now and still carry sweet f#*k all in stock why are they trying to borrow money ? supposedly now to buy diamond stock which they never wanted to carry in the past.
*
Who in their right mind is going to lend USD$5 million to a bunch of losers who have never had the confidence in building up their own diamond stock levels but expect others to have the same confidence to buy diamonds from them ? One word... Schmucks !
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It's too late. Diamond buyers want to see real diamonds when they are buying not a spread sheet of bogus website listings claiming hundreds of thousands of diamonds below cost price. It's an insult to any buyer's intelligence.
*
Drop shipping has reached the diamond industry and there are now an ever increasing number of diamond websites and diamond internet dealers selling "virtual diamonds".
*
This is a big risk and potential buyers are exposed to possible fraud.
*
Only deal with those diamond vendors who have real diamonds in stock not virtual diamonds.It's business not a popularity contest.
*
It's too late. Diamond buyers want to see real diamonds when they are buying not a spread sheet of bogus website listings claiming hundreds of thousands of diamonds below cost price. It's an insult to any buyer's intelligence.
*
Drop shipping has reached the diamond industry and there are now an ever increasing number of diamond websites and diamond internet dealers selling "virtual diamonds".
*
This is a big risk and potential buyers are exposed to possible fraud.
*
Only deal with those diamond vendors who have real diamonds in stock not virtual diamonds.It's business not a popularity contest.
*
The Australian Diamond Ponzi Scheme will not fail simply because I do not believe it will ever get off the ground unless by a single stroke of luck a sucker appears from no where. For the schemers they can only but hope they win the lottery jackpot prize to save their sorry asses but it serves a valuable lesson and warning how desperate some people have become in the online diamond wars or as W.C. Fields famously stated " never give a sucker an even break ".
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*Beware of Cheap Diamonds
Remember : Low price doesn’t necessarily mean a good deal
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ALL OUR DIAMONDS ARE IN STOCK !
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Daniel F Katz
GG (GIA) RFC (Aust.)
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Part of the Stick This In Your Affidavit Joke Book Series
Any names or similarities are purely coincidental
This is a work of fiction
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