Rock solid investments in a time of crisis - Diamond Security Exchange

Rock solid investments
in a time of crisis

About Diamond Security Exchange©
Do you know which investments have
doubled in value during the past four (4)
years? Allow us to share a well kept secret
with you from the secretive world of
diamond wholesale: the average annual
diamond price for selected qualities has
increased more than 20%!
At the Diamond Security Exchange, our
business consists of investing directly
into rare diamonds and financing genuine
transactions within the diamond wholesale
market. As a member, you will invest
with confidence based upon the consistent
performance we have achieved within the
global diamond market.
Our Founder, Patrick America, has nearly
twenty (20) years of experience in various
international trade and financial markets.
His wife Shirley has been engaged in diamond
trading for fifteen (15) years. Along
with her company, Glory Diamonds, she
is a recurrent member of the Amsterdam
Diamond Bourse, which exports exclusive
diamonds to Asia. It was through these
channels that Patrick was able to leverage
his relationships, and enter the exclusive
world of diamond distribution to both
dealers and jewelers.
Almost immediately, Patrick was able to
identify opportunities within the diamond
wholesale market, and he began to in-
100.00%
80.00%
60.00%
40.00%
20.00%
00.00%
-20.00%
2007-’08 2008-’09 2009-’10 2010-’11
vest his own funds. Within a few lucrative
years, he became a member of the largest
bourses for rough diamonds in the world:
The Antwerp Diamond Kring
(www.diamantkring.be) and the World
Federation of Diamond Bourses
(www.wfdb.com). Patrick soon began to
share the results of his investments with
friends, which subsequently led to the
launch of the DSE in 2007; allowing the
first of many outside diamond investors to
participate. Since its’ inception, the DSE
implemented a strategy that continues
to attract more private and professional
investors.
Annual Diamond Wholesale Price Increases
High quality diamonds
3 Carat
5 Carat
Patrick America WFDB ADK 2263
4 years Average growth
Year Average
3 Carat 22,98%
5 Carat 26,71%
Source: diamond wholesale target prices
As of January 1, 2012, we have introduced a minimum threshold of client investment equal to €100,000 Euro. For all investment
inquiries below this amount, please refer to the Brilliant Investment Fund (www.brilliantinvestmentfund.com)

Diamond fundamentals
The quality of diamonds is determined by
the Four C’s: Cut, Color, Clarity and Carat
weight. These four standards are used to
determine the quality of a diamond. Establishing
this quality is best done by internationally
recognized and accepted laboratories,
such as the GIA - The Gemological
Institute of America (www.gia.edu) and the
HRD - High Diamond Council (www.hrd.be).
Without their independent and thorough
examination, it would be impossible to trade
or invest in diamonds. All of DSE’s investments
possess the required certificates and
lab reports.
Diamond market
The global diamond market is organized
in bourses which operate under the World
Federation of Diamond Bourses (www.
wfdb.com). The annual turnover of the
wholesale diamond market on a global
scale is estimated to be forty (40) billion
US Dollars.
To determine the market prices of the
diamonds, several pricing guidelines have
been developed which function quite well
as an independent market
pricing mechanism.
For certain
categories, these prices have shown an
annual steady increase in excess of 20%.
Although it is possible to reproduce diamonds,
these have been recognized as
‘synthetic’ by independent grading laboratories
and do not qualify for our investment
purposes.
Why diamonds ?
Diamonds are rare. Over the past fifteen
(15) years, no major new producing
mines have been discovered. Add this factor
to the increasing demand from BRIC
nations, and the recipe for future price increases
looks very promising. In addition,
increased risks in other relevant markets
along with potential hyper-inflation, is
causing an influx of investment into the
diamond market. Previously, apart from
“Diamonds to Outpace
Gold on Asian Spending”
Diamond prices are poised to rise for
the next four years, outpacing gold,
as increased spending on luxury
goods in China, India and theMiddle
East outpaces supplies of the
precious stone.
Source: Bloomberg 28-12-2011
the lack of market knowledge, the main
reason for investors to stay out of diamonds
was the terminal market problem;
i.e. where to resell their investment. DSE
have solved these problems for the investor
by conducting our operations in a
completely transparent way. We are fully
accountable to external auditors while
working inside the diamond wholesale
market. We work directly with highly
regarded independent laboratories, using
published market prices. But most of
all, our fees are largely dependent on the
performance of your investment.
If selected by the client, their diamonds
will be stored in the secure vaults of the
Amsterdam and Antwerp (or other global)
diamond bourses, where they are regularly
checked by independent auditors and
accountants.
Design by: www.essencemedia.nl

DSE is ready, willing and able to work
with you by offering the best possible
way to make an investment, while eliminating
or reducing your risks. If requested,
DSE can accommodate custom investments,
such as collateral transactions
and futures contracts, in order to hedge
currency risks with rare diamonds. Investors
also have the option to become a
custodian of the stones themselves.
Examples
In 2007, on behalf of a client, DSE invested
in a 3 carat round stone of the
highest quality for $115,000 US Dollars
(at this time the minimum investment of
€100,000 Euro was not effective). The
stone was stored with its’ certificate on
behalf of the customer. As time passed,
DSE kept the client regularly informed
about the wholesale value. Currently
(December, 2011), this stone has a
wholesale value of about $220,000, with
its’ retail value being appraised at up to
2.5 times this amount. As of this moment,
the annual net return on investment for
this client is 22%, excluding profit share.
Other clients choose to structure their
investment as a loan, and hold the diamonds
in custody themselves. At the end
of the loan agreement, the clients return
the collateral, which is then sold on their
behalf in the diamond wholesale market
by DSE. The profits accrued on this transaction
are the compensation for the loan.
For such investments, DSE charges a 2%
DSE Fees 2012
Management fee 2%
Performance fees: Investor DSE
>=100.000,- Euro 50% 50%
>=500.000, - Euro 60% 40%
>=1.000.000,- Euro 70% 30%
Exit fee 1%
All statements and statistics found in this Brochure are for
informative purposes only and shall not be considered to be
professional investment advice. The minimum investment of
€100,000 Euro per customer is necessary because it provides
exemption for the DSE from required licensing under the Act
on Financial Supervision. This means that we are not subject
to regulation by the Dutch Authorities “AFM”- Autoriteit
Financiële Markten) or the Dutch Central Bank (“DNB”-
De Nederlandsche Bank).
Each DSE investment is
backed by real diamonds.
This fact is verified by
independent chartered
accountants
subscription fee and up to 50% of the
profit realized. With this kind of arrangement,
the return on investment for clients
is typically 7% annually or more.
Whereas, if the DSE were given authorization
to trade the collateral diamonds
continuously, investment yields typically
amount to 10% or more on an annual
basis.
Would you like to know
more?
Please contact us at: info@briljantfonds.nl or
info@diamondsecurityexchange.com.
You can reach us during office hours at:
Phone: +31 (0) 20 6759463
Fax: +31 (0) 20 6736482
Diamond Security Exchange
Located at: Diamantbeurs, Hogehilweg 14,
1101 CD Amsterdam Zuidoost,
The Netherlands
Located at: Diamantkring, Hoveniersstraat 2,
2018 Antwerp, Belgium