Risk Notice: This webpage is a promotional communication. For professional investors only. Please note, the intricacies of the gemstone market and other external influences introduce a level of uncertainty, making it crucial for investors to carefully analyse and assess these factors before making investment decisions. All the advantages of the presented opportunity are also offset by considerable risks detailed in the Offering Memorandum of the product. Please note, that past, backtested or predicted performance are not a reliable indicator of future performance.
Rough Gemstone I & II
quantumrock is in the process of launching a series of gemstone investment products. The first one, Rough Gemstone I, was launched in September 2023. This initial offering has a target size of 175 million USD and is structured for professional investors, family offices, and high-net-worth individuals. The structure was seed funded with a stock of rough gemstones valued at USD 125 million.
Gemstones emerge as an enticing, passion-evoking new investment frontier. Their beauty and rarity, as well as long history of yielding appealing returns position coloured gemstones as a viable professional asset class. However, the ultimate value increase is achieved during the polishing phase.
quantumrock Is Making Gemstones Professionally Investable For The First Time
Since its founding, quantumrock has utilised its deep understanding of financial markets to uncover unique investment opportunities for our clients. We launched our first investment product “quantumrock Absolute Return” in July 2016, available through Deutsche Bank. Our second product ”quantumrock Equity Alpha” followed in 2018. Now, we are leading the way in introducing coloured gemstones as a new professional asset class.
quantumrock draws parallels to the revolutionary roles of State Street and BlackRock, who were the first to launch Gold ETFs in the early 2000s, radically transforming the Gold market. Gemstones emerge as an equally enticing investment frontier. Their beauty and rarity, historical resilience to inflation, as well as long history of yielding appealing returns position coloured gemstones as an attractive asset class. Moreover, unlike other asset classes, they possess the unique ability to evoke passion.
Our innovative investment solution addresses a critical challenge of the coloured gemstone mining industry: the challenge of financing the cutting and polishing stages. Many miners possess valuable stocks of rough gemstones but find themselves constrained by a lack of working capital necessary for processing their inventory, due to the substantial capital investments required in their mining activities. This predicament typically forces them into a corner where they must either sell their rough gemstones at a fraction of their potential value to intermediaries – losing out on the significant markup (up to two to five times) achievable post-polishing – or resort to selling lower-quality rough stones to fund their operations, thus withholding premium-quality gemstones from the market. Additionally, miners are hamstrung by the difficulty of leveraging their physical stock as collateral for loans.
In response to these challenges, our solution presents miners with an unparalleled opportunity to realise the full value of their gemstones. By participating in our structured program, miners can convert their stock of coloured gemstones into bankable and tradable exchange-listed certificates. This innovation not only empowers the gemstone mining community by alleviating financial constraints but also allows our investment offerings to tap a steady flow of top-tier gemstones.
In collaboration with esteemed institutional partners such as CMS and Société Générale, we have established a scalable securitisation platform in Luxembourg. The management team includes the former Deputy Prime Minister of Luxembourg. Through this platform, we offer exchange-traded, asset-backed, secured, and short-term investment products.
These products invest in the acquisition and refinement of rough gemstones into polished gems, aiming to capture the resulting value appreciation.
We have secured a multi-billion dollar source of high-quality rough gemstones enabling the launch of gemstone investment products with a potential volume of approximately 5 billion USD within the next 24 – 36 months. The first structure, Rough Gemstone I was launched in September 2023 with a volume of 175 million USD – the world’s first professional investment product for gemstones.
The Ultimate Value Increase Is Achieved During The Polishing Phase
Polished coloured gemstones have shown good value appreciation in the past, however the ultimate value increase results from the expert beneficiation of rough gemstones into cut and polished gems, which can unlock significant value appreciation with increases in gemstone value of up to 5x (pre-cost).
By owning and controlling the entire value-add process from the mine to the finished product, we efficiently and effectively capture the generated value.
Important Disclaimer: Please be aware that the value of a polished gemstone is influenced by several key factors, such as its rarity, colour, clarity, cut, carat weight, origin, and market demand. Consequently, the value multiple estimations shown on this slide are based on expert experience, and the actual results may vary significantly. The projected increase in value is determined by two main factors: 1. the composition, qualities, and sizes of the structure’s stones and 2. the initial value of the rough gemstones.
Rough Gemstone I Was Launched In 2023 With A Volume Of $175m
quantumrock is in the process of launching a series of gemstone investment products. The first one, Rough Gemstone I, was launched in September 2023 and is closed to new investors.
Rough Gemstone II Was Launched In 2024 With A Volume Of $350m
Building on the success of Rough Gemstone I, quantumrock proudly announces the launch of Rough Gemstone II on 15 November 2024 with a target volume of $350 million, of which $250 million are already seeded.
From rough to refined.
© Quantumrock Securitization S. à r.l.. All right reserved.
© Quantumrock Securitization S. à r.l.. All right reserved.