Someone has approached me with a huge amount of money (not yet available though) to buy diamonds by hypothecation. Apparently a credit line will be raise against the diamonds. Is this like standing surety or something like that? Will it be wise to get involved in something like this if the returns are very good?
Please help

Kind regards,

Sorry but I'm confused. Are you selling or buying diamonds. If you are in the diamond wholesale/retail business, I know nothing about these things.

I am starting in the business and this person approached me to buy from me diamonds of mult million $ value. I am a bit cautious and wanted to know if anyone knows something about this way of paying for diamonds i.e. by hypothecation.
I hope this helps a little more,

Kind regards,

Then you could get more professional advice at www.diamonds.net