FAQs
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Contact your bank and have them contact us.
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The Rapaport list is the most used reference for the price of diamonds in the world. It is published weekly, and your CARATT purchase and sale contract will incorporate the most recently published list. This will be the reference price for the purchased diamonds as well as any discounts or adjustments. A IGI certificate of the quality and characteristics of the diamonds will accompany the purchase documentation as well.
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Like all investments, it is subject to risk, but you have the basic guarantee of the diamonds, which may or may not increase in value. Also, you have an optional liquidity guarantee, to be chosen at your discretion, of 70% of the original investment.
Because you are buying directly from our mining partners, the price of the diamonds is very advantegeous for the customer. It would be difficult without our mining partner arrangement to have access to quality and secure diamonds at these prices.
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The conversion value is 1 CARATT is equal to USD $10,000.
The value of diamonds will fluctuate with market conditions, however a CARATT will always have a guaranteed floor value of USD $7,000.
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Once the sale and purchase contract and deposit are executed and in place for 12 months, you can claim your diamonds or sell them at your discretion to the CARATT Trust for USD $7,000 per CARATT.
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Contemplating such hypothetical situation, the CARATT has its own direct and independent of CARATT Trust guarantees in a mix of 100% of its initial value (investment) in diamonds and money, according to the conditions of the purchase and sale contract and deposit.
Diamonds are held at duty-free warehouses which operate independently from CARATT Trust. Funds are being held in escrow at the banks of origin which operate independently from CARATT Trust. Under force-majeure conditions funds shall be allocated to a different bank of origin. Situations like, political instability, bank financial instability, etc.. The certificates are literally the key to unlocking either one. Whether CARATT Trust is healthy or defunct only the holder of the certificate can unlock its resources backing it.
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CARATT Trust has long-term diamond procurement contracts directly with Governments (national companies) and diamond mining companies, complying with all international norms of ethical and moral standards (Kimberley certificate). The deposit of diamonds is carried out in maximum security international centres specializing in this activity.
When CARATT Trust signs a CARATT sale and purchase contract with the client, CARATT Trust collects the diamonds for the guarantee indicated in the contract and the cash portion of the guaranteed deposit is allocated to the bank.
This enables CARATT TRUST to have appropriate reserves and ensure fulfilment on all contracts.
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Preference to claim money:
If all clients requested to sell the diamonds, the existing cash deposits and inventory are sufficient to meet these requests. The clients on USD $1 million original purchase would receive the USD $500,000 cash allocated deposit and USD $200,000 reserved to buy diamonds.
Preference to claim diamonds:
If all clients requested to claim their diamonds, on USD S1 milliont original purchase they would receive USD $500,000 in allocated diamond deposits, and the remaining cash value would be used to purchase the required additional diamonds. If at settlement the diamond industry conditions made the latter purchase unattainable, the client would receive the balanced owed in cash. Under this scenario, it should be noted that the client’s original allocated diamonds could have possibly seen their value grow significantly.
Both scenarios are outlined in the CARATT contract.
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Yes, a CARATT is a transferable certificate of deposit.
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CARATT Trust's recommendation is that the holder of CARATTs (via a gift, payment, acquisition, etc.) verifies their authenticity and validity at the time of receipt.
For verification and validity, contact CARATT Trust which will offer an appointment at one of its customer service offices located in many financial centers (see below*) within 15 days.
The verification will state if the CARATT is “authentic” and “valid” (activated by having made the purchase and initial deposit contract), and it will provide the date of contract execution (validity of the deposit for 8 years, date to dispose of the diamonds or cash). Additionally, it will also indicate how many times the CARATT has been verified.
Each verification has a cost of 1% of the value of the initial investment, to be deducted upon withdrawal of the deposit in either diamonds or cash.
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If the CARATT certificate is lost or stolen and is not recovered (it is similar to the banknote or a $100 bill), the deposit is lost, same outcome if the deposit is not withdrawn within the term of the contract.
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No, in both cases it is necessary to carry out the transaction by bank transfer.
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CARATT Trust, if the client so desires, will acquire their diamonds at the time of withdrawing their deposit, through a contract of purchase thereof, under the conditions indicated in the original contract of sale/purchase
The client will indicate a current account of which he is the owner, and CARATT trust will send the transfer to the bank with a copy of the diamond purchase contract to the client.
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The client must decide whether the tax declaration is necessary, and the tax treatment will depend on their jurisdiction.
Our recommendation is to file the tax return and pay what is legally appropriate (by donation if it is a gift, or income if it was in exchange for a benefit).
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The client signing the initial contract will examine all the conditions before signing, it is an adhesion contract with fixed conditions. The CARATT sale and deposit contract will not entertain different conditions and will not be negotiated.
If a holder is the holder by delivery from a third party, during the verification process, he will be able to know and resolve any doubts regarding the contract.
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No, each CARATT is attached to a contract and has specific guarantees.
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CARATT Trust will dedicate funds to the protection of the “big five” animals in Africa's most important natural parks.