Warning About Investment Scheme Backed by Fancy Colored Diamonds

Opinion piece
09/10/2015 10:20

Yaniv Marcus of the Diamond Investment & Intelligence Center questions the fundamentals behind an investment scheme created by Precious Investments Inc. Precious Investments' October 5 press release claims that "BitGems" will be the "first asset based Ether coin on the cyber currency market, which will be values [sic] and supported by the color diamond portfolio in PNIK... with a total appraised retail value of $5,000,000". Marcus details Precious Investments' (formerly FIGO Ventures Inc, formerly AAA Energy Inc.) dubious history, and points out that "up to the latest financial statement filed with the SEC had almost a $1 million total deficit, not a single dollar in sales or revenue, and no activities." Yet, "It now claims it purchased a $4 million dollar Fancy color diamond portfolio at wholesale price from Mr. Kashif Khan." (Hopefully it did not include this one).

Dr. Nataliya Hearn, CEO of Precious Investments Inc. says: “We are very excited to be the first asset based ether coin (BitGems tokens) and allow people to own and trade a currency backed by a real asset. Every BitGems token represents a part of our color diamond portfolio and can be traded for any currency, including cryptocurrency such as Ether and Bitcoin, and can be redeemed for diamonds from PNIK’s portfolio. Given that the value of color diamonds has seen a steady appreciation of about 15% per year since 1950’s, BitGems will provide one of the most stable international investment instruments that are currently available." Marcus is not buying it, concluding that, "Although the idea of BitGems is different and may one day work if there is enough support, based on current information available, this project will not be successful." In short: "Investors beware!"