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Paul Sandberg

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Everything posted by Paul Sandberg

  1. Hi Bryony and the others here, Nice to hear from you. I'm glad to confirm that Richard Chamberlain of Glenmuir (the Trustees of Pure Diamonds) completed the return of my capital investment (£32,000) to me last month. My investment has been a failure, but at least I got my money back. This does not include compensation for my travel to Geneva in 2011 and my accommodation there of course. But it's still a relief!
  2. Thanks to everyone for their feedback. If I don't get the promised audit or I am not satisfied with it, my next step will be a legal process with the aim of forcing disclosure. As I told the Trustee, as a shareholder in the company, I believe I am owed transparency.
  3. Thanks for all your great comments on this thread started by me. The Trustee has promised me an "audit" before the end of 2015, so I will see what information is released in due course. It will be the first audit I have had (in the three year investment period so far), and the Trustee seems only to have agreed to release the audit following pressure by me. The audit will include dated photos of the diamonds in the Geneva vault, as proof they are still safely held there (dated at the time of the audit). I will share on this forum the outcome of my investment when I finally have it. As per contract, the diamond portfolio is to be sold at any time between 3 and 5 years of the investment commencement date (with the proceeds then released to the portfolio co-owners on a pro rata basis - i.e. according to our respective investments). The company directors decide on the exact time to sell within that period according to market forces, with a view to obtain the best returns they can for mutual benefit, as explained above. So, that is how they benefit from our investment. The gems are all colour diamonds (e.g. pinks and yellows). The claim is that so far, the value of colour diamonds has been increasing year on year as predicted. Diamond mines are being closed, with the expectation that the value of good quality diamonds will keep rising as supply does not meet demand. I only hope that the diamond market doesn't follow the performance of precious metals in the last few years!
  4. Hi davidelevi, I much appreciate your advice. I have replied to the Company and have made use of your advice. In particular, I requested a full inventory itemising each gem in my portfolio or syndicate. I said that the inventory should include the GIA certificate copy for each gem, with details of their shape, weight, colour, clarity, cut, polish and symmetry. I added that the inventory should be confirmed by the Trustee and disclosed to me by him. I accepted that an inventory can substitute for an audit. I was told that there is a total of 28 members/investors in my syndicate. The syndicate members co-own the diamonds, since the Company purchased them on our behalf (after we remitted the funds to their account), and keeps them in the Geneva vault. Allegedly the portfolio was purchased at a cost of about £1million near the end of 2012. Exit from the investment is between 3 and 5 years (starting from September 2012); the precise exit time is determined by the Company with a view to optimising the returns. There is a Trustee who oversees the inventories and checks that the diamonds are stored in the Geneva vault. However, he has not shared the inventory with me, and I have insisted that this information must be disclosed to me. Finally, I added this paragraph: "Since the diamonds were purchased with my money, and I co-own them, I believe I have a right to know the Company's purchase price of each diamond in my portfolio, and that I should be able to compare this with the final selling price on exiting the investment. Moreover, all the investment costs, including fees taken by the Company, are set out in the Memorandum, so I see no reason for the withholding of the purchase price of the diamonds. Knowing the purchase price would be useful for me to gauge the plausible or realistic market value of my portfolio, taking into account the market trends. It would also compensate for the absence of an independent valuation of my portfolio. If the Company decides not to release this information to me (the purchase price), I may contest this omission legally."
  5. Again, thank you for the reply. Once this investment of mine is done and dusted, I'll let you know how it worked out!
  6. Hello again! I wrote to Pure Diamonds demanding to see the audits and inventories of the diamonds owned by the syndicate of which I am a part/member (bearing in mind that I started my diamond investment nearly three years ago, and I have received no audits or inventories so far). The trustee has just replied to my email. He has sort of thrown the ball back into my court. I would appreciate any advice you might have as to the reply I might make to his questions. I intend to reply to him in the next couple of days. The trustee is a broker and investment provider (called Glenmuir Ltd. UK), and is part of the board of this diamond investment (I withhold his name for now). On starting my investment, I was told that each syndicate (including my own) would hold diamonds purchased at approximately 1 million pounds sterling; many of the diamonds are pinks and yellows, and the total number of diamonds in my syndicate is about 12 (I saw them in the Geneva vault in the beginning of 2013. Allegedly, they were owned by my syndicate).. In his email below, the Trustee indicates that there are 28 members in my syndicate.The plan is to distribute the proceeds of the sales, when sold, on a pro rata basis to the respective syndicate holders (I invested and remitted £32,000 in my holding, so the other syndicate members would have made up the remaining £1000,000 balance). I hope this explains it all sufficiently. I copy below his email reply to me, as follows: Dear Mr Sandberg, I wish to provide a response to the various matters contained within your recent email. To ensure I fully understand your points, can you please provide a response to the following questions; Matter of Transparency: Can you please clarify what you feel has not been provided to you in this regard. Audits: What do you feel should be contained in the annual “audit†and how do you fee this should be produced? Vague Newsletter: Can you explain what you mean by this. The investment being a buy/hold/sale based investment cannot be so specific especially with values. Inventory Check: Again what are you expecting see in the form documentation to cover this matter? Finally on the matter of your final two questions. A definitive value of your syndicate holding is not possible without incurring considerable cost. Any valuation by a third party would be based upon personal preference. The purpose of the newsletters was to provide a factual transaction value of similar diamond specifications that had been sold via sources likely to be chosen by PDA. The number of syndicates that hold investment is not relevant to your investment as each is segregated with its own portfolio. Within your syndicate there are 28 investors. I look forward to receiving your reply to points 1-4 above and will then provide a more detailed response. Kind Regards,
  7. Many thanks for your great replies. You are right that there are storage costs in the Geneva vault (Malca-Amit), which I did not factor in (see below). This, plus other costs, makes my investment in a portfolio of diamonds (with PDH) far less profitable or worthwhile than I had anticipated. I will keep you posted. At least my contract with PDH stipulates that I (with the other investors) actually own the diamonds (stored in the vault) although we can't touch them, since we co-own them as part of a syndicate. They are held on our behalf by a GDC vehicle called "Pure Diamond Assets". I do feel "disempowered" by the structure of the investment, since we are only given a rough timescale for the sale of our diamonds (3 to 5 years), with the exact timing decided by the directors of PDH. Would-be investors really should be much more careful or wary with this type of complex investment than I was. My contract with PDH stipulates: "An important element of this structure means that the investors own a pro rata share of the diamonds completely unencumbered. So there is a real asset underpinning the investment, which the investor owns outright through their shareholding.....The investment period is based on holding the diamonds for up to 5 years in order to benefit from the capital growth within this investment class. However the Directors of Pure Diamond Holdings Ltd in conjunction with the Investment Administrators will have discretion to instruct the sale of any or all of the diamonds held from year 3 onwards, should market conditions prove particularly advantageous and this serves to benefit the investors...At the end of the five-year investment period, a potential gross return of between 65% to 80% is expected." Target returns are given as 13+% per annum (NB any returns over the expected 13% are shared equally between the investor and the company). The Trustees (overseeing the project) are Glenmuir International Ltd, UK). The contract says that the investment is insured and underwritten by Lloyds of London. The investment fees (a little hidden away in the Memorandum, I'd say) are as follows: Subscription Fee A Subscription Fee in relation to the Offer has been fixed at 3% of the funds raised pursuant to the Offer. This is payable to the Investment Administrators for services provided. Introductory Commission Fee An Introductory Commission of 4% of the funds raised pursuant to the Offer and is payable to the authorised financial adviser or registered agent. Storage, Insurance, Laboratory Fees & Management Fees The Directors have allocated a fixed cost to the secure storage, insurance, laboratory testing of the diamonds and management costs, which over the five-year investment term is 7.5% of funds invested. The Investment Administrators shall also be entitled to an Annual Management Charge equal to 1% of the funds invested. This shall be deducted from returns paid to investors. There will be no further fees, costs or expenses applicable to the investment detailed within the Memorandum. I appreciate your interest and advice!
  8. Thanks for the reply. Pure Diamond Holdings claim that they auction the diamond portfolios owned by the investors at a suitable time (determined by them) between 3 and 5 years after the investment began (I started my investment in September 2012). Investors co-own a portfolio of precious diamonds purchased at about 1 million pounds per portfolio (my purchase was £32,000). The diamonds are stored in Malca-Amit's vault in Geneva. The portfolio is sold at the end of the investment period (e.g. by public auction or to private buyers), and the proceeds immediately distributed to the investors pro rata of investment. Their projection is that the value of the diamonds will have risen by about 13% (or more) per annum. Here is the link to "Pure Diamond Holdings" http://purediamondholdings.com Any profit above 13% is shared equally between Pure Diamond Holdings and the investors.
  9. Has anyone in the forum experience with investing in "Pure Diamond Holdings Ltd." (the C.E.O. is Mr. Andrew Segal). I invested in a portfolio of diamonds with this company in 2012. The investment exit is supposed to be between 3 and 5 years.
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