France's AMF Warns About Diamond Investments

Last week, it was reported that India was set to become the first country in the world where polished diamonds can traded on a commodity Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term.

The Indian Commodity Exchange Ltd (ICEX), which has already received the in-principle approval from the regulatory body for the launch of diamond contracts, is reportedly in the final stages of launching contracts that will allow trading in the precious stones with a formal launch by the Securities and Exchange Board of India (SEBI) expected by March.

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However, in spite of their dazzling appeal, diamonds have come under scrutiny in France by the Autorité des Marchés Financiers (AMF) which has warned the public against offers in their investment.

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Diamonds are often presented as a safe haven, with promises of exceptional and even unrealistic returns, but the AMF is calling on individuals to be vigilant.

The warning has arisen after the AMF noted a sharp increase in offerings of investment diamonds to the French public and received a number of complaints of aggressive solicitation from these platforms, along with difficulties experienced in recovering investments.

It was further noted that the postal addresses of these platforms or companies in prestigious places are often fictitious, in a similar way to illegal Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and binary options trading platforms.

The AMF has warned that due to the high degree of uncertainty as to the nature of such offers, investors should refrain from acting on the solicitations of these entities and should not relay them to third parties in any form whatsoever.

The AMF has also taken the opportunity to remind investors that these investment offers are risky, and in case of fraud they should file a complaint providing the judicial authorities with all possible information.