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GEMBlock
Banking-compatible gemstones for investment and wealth diversification as a new asset class
GEMblock, a Swiss FinTech organization, is reshaping global finance for affluent individuals and institutions by offering gemstones – like rubies, sapphires, and other select precious stones – as a stable, market-agnostic investment option.
By establishing a new asset class, GEMblock unlocks a multi-billion dollar market.
About Us
Our Mission
GEMblock pioneers the integration of gemstones into the global financial landscape, offering a stable, market-resistant investment.
By leveraging our proprietary Digitally Melting™️ technology, we create a new, fungible, and banking compatible asset class, safeguarding wealth against the volatilities of traditional investments.
Our Vision
The vision of GEMblock is to redefine and dominate the global gemstone market by establishing a new and universally recognized asset class based on investment grade coloured gemstones.
What does "new asset class" mean?
GEMblock brings gemstones into a structured financial framework, meeting the criteria necessary for an emerging asset class.
When an asset becomes recognized as an asset class, it signifies a major development in the financial markets. An asset class is a grouping of investments that exhibit similar characteristics, and behave similarly in the marketplace.
The recognition of an asset as an asset class typically means it has achieved:
Widespread Acceptance
The asset is widely recognized by investors and analysts as a distinct category suitable for investment. This acceptance is often underpinned by a consensus regarding the asset's value proposition and the role it can play in diversification and risk management strategies
Trustworthy Framework
The asset is supported by a framework that provides guidelines for its trade and ownership. This framework helps in establishing trust among investors, ensuring that the market for the asset operates smoothly and transparently.
Market Liquidity
The asset possesses a degree of market liquidity that allows investors to buy and sell it with relative ease. Liquidity is crucial as it affects the asset's price stability and the ability of investors to enter or exit positions without causing significant price disruptions.
Investment Vehicles
There are specific investment vehicles and instruments available that enable investors to gain exposure to the asset. These can include direct investments, funds, and other financial products designed around the asset, making it accessible to a broader range of investors.
Risk and Return Profile
The asset has a distinct risk and return profile that differentiates it from other investments. Investors and financial analysts understand these characteristics and can evaluate how the asset fits into diversified investment portfolios.
Market Infrastructure
There is an established market infrastructure for trading, clearing, and settling transactions involving the asset. This infrastructure supports the operational aspects of investing in the asset, contributing to its acceptance as an asset class.
All these criteria are met by gold today. However, before 1987, gold had not been established as an asset class as it is now. Individuals could only buy and sell coins or bullions in banks, and trade was predominantly between governments.
On 14 December 1987, the London Bullion Market Association (LBMA) was formally incorporated, establishing guidelines that led to the creation of gold as an asset class.
Today, the LBMA actively participates in market development, including the evolution of financial products related to gold, such as exchange-traded funds (ETFs) and over-the-counter (OTC) instruments. This innovation has diversified the ways investors can access gold, broadening its appeal and opening up a multi-trillion-dollar market.
Bullion market dinner in the mid 1980s (c) LBMA
Why Gemstones?
For over 5000 years, gemstones have symbolized wealth and power, consistently representing value and prestige.
Unmanipulated
Unlike gold or diamonds, the market for colored gemstones, such as rubies, sapphires, and emeralds, remains free from oligopolistic controls. This independence ensures a level of market integrity and openness not always found in other asset classes.
Rare
With an estimated annual value of newly mined gemstones at $35 billion, their rarity is unquestionable. This market size is substantial enough to form its own asset class, yet remains intricately small and complex, deterring governmental control, unlike gold.
Unrestricted
History lacks precedent for the banning or confiscation of gemstones, unlike other precious assets such as silver or gold. This freedom adds an extra layer of security for investors.
Unique
Formed over the span of millions of years, each gemstone is a masterpiece of nature, unparalleled and distinctive, much like a fingerprint, making every piece a unique investment.
Wealth
Historically, gemstones have maintained their buying power, demonstrating resilience against market volatility and preserving wealth over time.
Low Volatility
Focusing on safety and stability, gemstones present an investment path with lower volatility. This approach prioritizes long-term security over the pursuit of quick, high-risk returns.
Unlinked
The value of gemstones is not tied to the fluctuations of traditional financial markets, providing a strategic hedge in diversified investment portfolios.
Endurance
Rare, high-quality gemstones have shown a consistent appreciation in value, underpinned by their scarcity and sustained demand. This long-term growth potential makes gemstones a compelling choice for the investor.
A Low-Volatile Investment
Gemstones represent an exceptional investment avenue, distinct from the volatile swings of cryptocurrencies and stocks. They provide a solid foundation for growth, with a trajectory that's both steady and predictable. Impressively, they stand toe-to-toe with the returns of esteemed stock indices such as the MSCI World, S&P 500, or DAX, showcasing their competitive edge.
The Reasons for the GEMblock Ecosystem
GEMblock offers a liquid, tradable asset. The value is not only preserved but also set for growth across various applications. Below, we detail some of the innovative applications for financial products:
Estate Planning
Ensuring wealth preservation for future generations is fundamental for long-term financial planning.
Resilient Growth
Offers a pathway to growth with a shield against economic turbulence.
Diversification
An asset class that offers diversification is essential in any robust portfolio.
Risk Management
Bridging the divide between traditional finance and digital assets, promoting broader acceptance and trust.
Potential Usecases
GEMblock offers a liquid, tradable asset. The value is not only preserved but also set for growth across various applications. Below, we detail some of the innovative applications for financial products:
Collateralization
Given the growing significance of DeFi and the need for stable collateral, GEMblock's potential here is paramount.
Asset Backing
GEMblock is providing intrinsic value, ensuring stability and the reduction of price and market volatility.
Liquidity
GEMblock offers high liquidity, allowing investorts to easily convert their holdings into other forms of assets or cash.
Treasury
Becaus of gemstones purchasing power preserving characteristics, it makes GEMblock a perfect investment for the treasury of institutional investors, banks and HNWI's.
Insurance Products
The stable nature of gemstones makes them an ideal asset for innovative insurance and pension fund products, as well as a hedge against more volatile investment types.
Future Applications
The future holds applications beyond our current imagination, set to revolutionize industries we've yet to conceive.
Meet The Team
Meet the dedicated team behind GEMBlock's vision and innovation.
Alexander Streeb
Co-Founder, CEO
Alexander has been in the financial realm for over 35 years and was the founding member and former CEO of GECAM AG (German Capital Management AG), a top-ranked German asset manager, and co-founder of DEH.
Gordan Kljajic
Co-Founder, CMO
Gordan is a marketing and sales expert with more than 20 years of experience. As the co-founder of DEH he helped to establish the company as the leading investment gemstone company in Germany within a few years only.
Mikail Rahman
CTO
Mikail has a formal background in Mathematics, Computer Science, and Physics with a rich web3 consultancy background, specializing in building strong, fast-to-market technical infrastructures for startup acceleration.
Strategic Partners
Through the power of strategic partnerships, we elevate our technical and logistical capabilities to new heights. Our collaborations bring together unmatched expertise and cutting-edge partners, ensuring our infrastructure is not just robust but a model of innovation and excellence.
What We Are Looking For
In the heart of our operation, we challenge the conventional limits of both traditional equity and typical cryptocurrency projects. Positioned at the intersection of the legacy financial system and the emerging digital economy, we've adopted a hybrid approach. To realize our vision, we are targeting three distinct types of investors.
Strategic Investors
Our quest is to connect with partners who offer more than financial resources. These strategic investors come equipped with deep industry knowledge, extensive networks, and a genuine dedication to our mission. They provide crucial financial support alongside invaluable insights and strategic guidance.
Strategic Partners
We are focused on establishing partnerships that open doors to fresh market prospects, integrate the GEMBlock ecosystem across diverse industries, and spark collaborations that fuel significant growth and breakthroughs. Our goal is to work hand-in-hand with entities ready to explore untapped potentials, ensuring the GEMBlock ecosystem becomes a cornerstone of innovation and expansion in the global market.
VC Investors
Leveraging their vast experience and networks, VC investors align with our vision, enhancing our credibility and opening doors to fresh opportunities.
FAQ
1. How do we differ from other investment opportunities?
Multi-billion dollar potential
Establishing an asset class in the investment market is a multi billion dollar opportunity. With our team's distinct blend of expertise and a proven track record, we present an opportunity that's hard to overlook. The potential market size, our traction, and the terms of deals we secure make choosing this project a straightforward decision.
Track Record
The experience of GEMblock's founders has shaped a business approach perfectly suited for the financial market, designed to exceed its unique needs. This strategic foundation positions us as leaders in a competitive market, offering a project with significant growth potential.
Working Business Model
Our business model is validated by real-world achievements since 2018, providing us with insights into the market's actual demands and opportunities. We offer strategies that are practical, impactful, and have demonstrated success.
Huge Market Size
We aim to leverage an existing market with a vast wealth pool. Targeting a slight fraction of a 178 trillion dollar market could lead to a considerable opportunity, showcasing the immense potential for growth and impact.
2. How do we differ from other gemstone projects?
Vision
Our project stands out because of our broader perspective. While the allure and luster of gemstones are widely recognized, their capability to compactly store and preserve significant value across generations is less known. This feature holds exceptional appeal for the financial market. Our aim is to capitalize on this value, not just the physical gemstones, making it a strategic asset for financial portfolios.
Digitally Melting™
Our approach of Digitally Melting™ sets us apart by creating a standardized commodity that is secure, tradable, and fungible through blockchain technology. This innovation is our signature in the market, offering a new and unique commodity.
Proven Business Model
As the blockchain extension of DEH based in Switzerland, our business model is well-established and tested since 2018, covering all aspects from procurement and delivery to the valuation and secure storage of gemstones in Swiss vaults. This comprehensive process demonstrates our capability and success in the field, showcasing our expertise in bringing a product to market effectively.
We scale an existing business model globally.
3. Why Digital Melting™
Stability
At the core of our strategy is the pursuit of stability. While gemstones are an inherently stable investments due to their low volatility, we've further mitigated risk by assembling a diversified portfolio of investment-grade gemstones. This approach amplifies stability, cushioning against market fluctuations.
Diversification
Our portfolio embodies the diversification principle, smoothing out price variations within the gemstone market. Leveraging blockchain technology we transform inherently unique gemstones into a tradable asset class, broadening their appeal and accessibility to the investment community. This innovative step not only diversifies investment options but also enhances liquidity in the gemstone sector.
Interoperability
Our concept positions us to lead the market by enabling the integration of various gemstones and gemstone projects into our ecosystem. This capability establishes us as a central hub within the gemstone investment sphere, catering to those who value the enduring qualities of gemstones stability, wealth preservation, and independence from the broader financial market's fluctuations.
4. Why are gemstones an interesting investment, especially for institutional investors?
Focus on Value Preservation
Institutional investors, tasked with managing third-party funds, prioritize the preservation of capital. Traditionally, this leads them to opt for conservative assets like fixed-income securities, real estate, and government bonds. However, these are not immune to economic downturns, currency devaluations, inflation, and sovereign debt crises, which can transform a seemingly secure investment into a volatile one. Or even losing one.
Practically Risk-Free Asset
Unlike other assets, land and gold, while generally safe, carry their own sets of risks, such as potential for conquest or expropriation. Gemstones, by contrast, stand out as a scalable and secure investment. Their tangible nature, scarcity, and resistance to arbitrary expansion position them as an unparalleled choice for foundational investments. This makes them an excellent cornerstone for conservative portfolios, offering a platform for more adventurous investment strategies without sacrificing stability.
Interest is the price one pays for the risk of an investment.
What does it mean, therefore, that there is no interest on gold and gemstones?
The absence of interest on assets like gold and gemstones signals their low risk profile. For entities like insurance companies or pension funds, the primary objective is not profit maximization but loss prevention. Gemstones align perfectly with this goal by safeguarding value over time.
Centuries-Long Upward Trend
Gemstones have demonstrated a consistent upward value trend across centuries. While other assets may show higher short-term gains, few can match the long-term availability and value retention of gemstones. From the 17th century to today, gemstones like rubies have not only preserved but increased in value, outliving even the oldest of stocks and highlighting their lasting appeal.
5. What are the key advantages and solutions of GEMblock?
Bridge Function
As the digital asset market evolves, the demand for grounded, practical blockchain applications intensifies. GEMblock stands as the architect of a crucial connection, merging the reliability and tested success of traditional business models with the world of blockchain technology. This strategic linkage not only validates the relevance of blockchain but also propels its integration into established marketplaces.
Digitization Resolves Complexity
The transactional journey of buying and selling gemstones, historically fraught with complexity, is now streamlined by our innovative digital solutions. We have transcended previous barriers by utilizing blockchain technology to render the inherently unique nature of gemstones into a tradable form. This breakthrough significantly broadens accessibility, inviting a diverse audience to engage with the gemstone market like never before.
Problem-Solving
GEMblock introduces a suite of solutions tailored to address the nuanced challenges of the gemstone trade. Our platform ensures:
– Enhanced security in purchasing,
– Streamlined resale processes,
– Expert valuation services,
– Achievable tradability and interchangeability, facilitating trade on a unified marketplace akin to that of gold,
– The standardization of unique gemstone assets.
These advancements redefine the trading, offering unprecedented ease and security to investors and enthusiasts alike.
6. What is the total risk of loss for an investor?
The risk of total loss for investors in GEMblock is exceptionally low. We strategically allocate a large portion of all raised funds during the fundraising process directly into precious stones for liquidity. This approach ensures that, even in the least favorable outcomes, the tangible value of these assets remains accessible to investors, significantly reducing the financial risk involved. Engaging with GEMblock translates into an investment opportunity where the risk is remarkably contained.
7. What advantages do I have as an investor?
GEMblock prides itself on providing an exceptionally investor-friendly environment. This begins with choosing Switzerland as our base, known globally for its legal stability and security, offering investors peace of mind regarding their capital.
The intellectual property (IP) of GEMblock is securely held within the investment entity GEM IP GmbH, also based in Switzerland. This structure allows investors the opportunity to take up to a 90% stake in this SPV. Additionally, GEMblock's operational model mandates the purchase of gemstones via the SPV, ensuring that the trading margin is retained within the company. This setup not only safeguards capital flow but also grants investors comprehensive oversight over GEMblock GmbH's business activities.
As an investor with GEMblock, you stand at the forefront of market innovation, contributing to the establishment of a new, vibrant market segment. Your investment aids in showcasing the exceptional potential of gemstones, making their distinct properties accessible to a wider audience.
Our model is designed to minimize risk while aiming for a return on investment (ROI) within just a few years. Moreover, we value the prospect of forging long-term, reciprocally beneficial partnerships with our strategic investors, emphasizing mutual growth and success.
Contact Us
office @ gemblock . cc
Telephone
Telephone: +60 (0) 13 - 3245841
Contact Form
GEMBlock GmbH
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