Warning For Families Selling Diamonds

Published on 05/08/09

Hard-up families who are tempted to sell gold and diamonds though the internet in the hope of obtaining higher prices than elsewhere have been warned that they risk becoming victims of fraud.

A number of international companies run online "cash for gold" and "cash for diamond" schemes and promise to give customers better prices than they would get from conventional dealers.

Customers are instructed to send their precious stones and jewellery to the operators using free shipping facilities. The schemes are aimed at the North American market but are growing popular in the Middle East as anyone who refers new customers receives a 10 per cent commission on each transaction.

Many people in the region are selling jewellery as they cope with the effects of the economic downturn. But local traders advise customers to conduct business face to face in the UAE.

"Such schemes offering to pay you money after you send in your loose diamonds or jewellery could be fraudulent because once you courier the stones, there is no way you can recall it," said Amit Dhamani, Chief Executive Officer and Managing Director of trading company Dhamani.