The diamond trading industry is just another yarn of deceitful boiler room operations where victims are tricked into investing their hard-earned money so as to get super-attractive returns.
A high-end diamond scam will use technical jargon, mock websites and impressive job titles to lure in victims into what would later emerge as a pyramid scheme.
This is one of the markets that lack transparency. It therefore makes it vulnerable to manipulation and trickery from con artists.
One such company that has been accused of fraudulently asking people to join its diamond investment scheme is called Pay Diamond.
Police have received a number of complaints from people who got ripped off by Pay Diamond. The reason why that website hasn’t been pulled down is beyond my comprehension.
Pay Diamond operates in Manitoba. It’s one of the few regions in the world where investment in precious stones is poorly regulated.
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This could explain why Pay Diamond is still operating with impunity despite complaints being forwarded to the local police department.
Pay Diamond is simply a recruitment scam and ponzi scheme that purports to offer a golden investment opportunity for those who want to earn attractive returns on a weekly basis.
It is alleged that Pay Diamond is a company that purchases, processes and sells diamond so that it can share the proceeds with its recruits using a reasonable price model.
At one point, Pay Diamond listed its address as SUITE 3601, Two Exchange Square 8 Connaught Place, Central, Hong Kong.
We do not know whether or not they still own this address because the website is clearly written in Spanish and not in the language that is spoken in Hong Kong.
Also, most internet sites which are operated out of Hong Kong are written in English.
There’s a possibility that Pay Diamond switched hands and now it’s under a new management with a totally different face behind it.
First off, the basis upon which this company operates is that they are combining multi-level marketing with a high-valued product that has high liquidity round the clock.
When you want to participate in Pay Diamond investment scheme, you are supposed to purchase a package which will earn you a weekly bonus of 5% up to 50 weeks.
50 weeks is one investment cycle — according to the company.
Once this period comes to an end, you can use your accumulated bonuses to buy another package, and so the cycle continues.
Pay Diamond is also encouraging its members to buy more packages during any investment cycle. After all, it only ”makes sense” to pump in more dollars to earn more commissions.
Joy package makes you $10 a week if you put in $200. Light package gives you $20 per week when you put in $400.
Plus package gives you $60 per week when you put in $1,200.
Master gives you $180 when you put in $3,600. Finally, premium earns you $1,800 per week when you invest $36,000.
From what you can see above, it is clear that this is a sophisticated mix of ‘diamond trading’ with multi-level marketing.
This is nothing short of a pyramid scheme. In fact, the claim that diamonds are traded by this company so that profits are distributed among members is questionable at best.
Maybe diamond is not involved at all. Maybe the company is only collecting money from members of the public in the name of diamond investment when that’s not the case.
A pyramid scheme will eventually collapse when low-tier members stop funding the sharks at the top.
Furthermore, this website does not indicate whether or not they are professionals in diamond dealings.
Most people who trade diamond for profit buy the stones through a specialist. That is the only way to be certain that you are getting fair pricing.
Selling the stones also come with a host of challenges. It involves haggling with a specialist.
The problem with Pay Diamond is that their ”specialist status” cannot be verified.
Also, the lack of strong regulations is to blame. The people who operate Pay Diamond are gutless and faceless people.
They hide behind a computer or a telephone when targeting naive investors who have heard that diamond investment is the new ”make me rich quick” scheme.
It is worth mentioning that Pay Diamond currently has bad standing with the local authorities.
It was reported that the local Police Service in conjunction with the Manitoba Securities Commission (MSC) issued a warning against joining Pay Diamond.
Authorities claim that they have enough evidence that this website is operating a pyramid scheme as opposed to genuine diamond trading.
There is also a lot of confusing because this company initially stated that it was being operated in Hong Kong. Now it is operated in Manitoba.
In my opinion,claims that Pay Diamond is a pyramid scheme can be substantiated.
You see, the business model highlighted above says it all. Victims contribute into a pool of funds so that they can make some profit out of it.
The issue of diamond investment is then brought into the limelight as an excuse so that investors will never question where their profits will come from at the end of the week.
The truth is that you may get paid once or twice because such scams can go on for months before collapsing.
Even if you’re paid a tiny fraction of what you have contributed, the owner will never take a loss because he keeps the rest of the money.
While still at it, they may encourage you to keep investing so that you can earn more. Chances are that you will also tell your family and friends about this ”great new opportunity” that you came across. After all, you’ve received the first paycheck, and so you think it’s genuine and worth pouring in your lifetime savings. Be warned.
The guys at Pay Diamond are doing a clever job. Even if they pay you a small fraction of what you contributed and keep the rest, they will have profited from you a great deal.
No wonder this website has caught the attention of the local police. It means that things aren’t good.
How about learning that this company is not registered to sell securities in its country of operation?
You see, this is only possible when we are talking of a classic ponzi scheme.
Those who recruit others earn commissions. The problem is that the company will always benefit a great deal before giving its final blow and disappearing with its affiliates money.
I wouldn’t give a penny to any of their investment packages. It’s a waste of time and money.
It’s a classic example of a diamond ponzi scheme which I feel no one should be involved with.
On the same note, we conducted due diligence to find out which legitimate companies were trading diamond and profiting those who invest with them.
Of course not everyone is rogue in this industry. A few companies like Diamond Privilege are doing legitimate business here. As you can see, they are registered and have the necessary infrastructure to conduct this business efficiently.
Also, a quick check on the website reveals that Diamond Privilege offers a deep level of transparency so that investors can know what quality of diamond they are buying or selling. It’s a safe bet. You can sign up here.
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