The Mint will within a few weeks launch their anticipated unique marketplace for tokenized rubies and sapphires - a first of its kind. NBX is excited to take part in this digital transformation of a real world asset. In this article we will explore the magnitude of reasonings as to why you should be excited as well.
Colored gemstones like rubies and sapphires have recently emerged as non-traditional assets attracting investors world-wide that seek diversification. These gems have gained significant prominence due to their robust value growth, positioning themselves among alternative investments such as diamonds, art, watches, and cryptocurrencies.
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Investing in top-quality colored gemstones has proven to deliver exceptional returns, serving as an effective hedge against inflation and market volatility. Over the past three years, they have consistently outperformed the S&P index, while the prices of natural diamonds have experienced a noteworthy decline. The shift in and of itself is a game changer and those who are not “on the ball” are deemed to be left behind.
The shift itself in investment preference towards colored gemstones (and away from diamonds) can be attributed to several factors, including the changing landscape of consumer demand.
As with any industry, a shift in consumer demand ultimately leads to a shift in supply and the supply-side of colored gemstones remains limited all the while demand keeps increasing. The prominent mines of the world are currently experiencing a depletion of their outputs, leading to diminishing supply to the world market and many of the largest suppliers are under strict sanctions. As for the increasing demand, this is mainly led by Chinese and Indian buyers. At the same time, turbulence in regards to the diamond market, largely induced by the ascent of lab-grown diamonds, has led investors to reconsider their choices.
Record-breaking auctions have witnessed investment-grade colored gemstones fetching prices well above initial estimates. An example of this is the 55.22 carat ruby that was auctioned off by Sotheby`s for 34.8 million dollars last year - the highest price ever for a ruby at an auction. Meanwhile, evolving consumer preferences and the increasing affordability of lab-grown diamonds have underscored the attractiveness of diamonds themselves.
Looking forward, colored gemstones are poised for sustained appreciation, primarily driven by structural tailwinds. In contrast, natural diamonds face a range of challenges, making colored gemstones an increasingly appealing prospect for diversifying portfolios.
The Mint has seized upon this investment trend by introducing a groundbreaking concept: tokenizing rubies and sapphires into NFTs (Non-Fungible Tokens). This move not only aligns with the evolving preferences of investors but also opens up an entirely new marketplace for public exploration.
Each NFT represents ownership of one or more unique rubies, which are securely stored in a vault managed by a trusted third party. NFT owners have the flexibility to retrieve their rubies at any time, with every action meticulously recorded in a tamper-proof digital certificate, ensuring the ruby's authenticity and value.
Environmental concerns related to blockchain technologies have also been addressed by The Mint. They are committed to minimizing their digital footprint through energy-efficient practices without compromising service quality.
While rubies are currently the focal point, The Mint has a forward-looking approach. They plan to explore new asset classes in the future, promising exciting opportunities for investors. Soon, users can explore a whole set of exciting NFTs and access information in regards to both the NFTs themselves and the market where they derive from. This will help shed light on the unique value proposition of these NFT-backed assets.
Support and inquiries are actively welcomed, with a dedicated team readily available for assistance. In essence, The Mint represents a transformative force in the investment landscape, bridging the gap between tangible assets and digital investments, making them more accessible and secure in the digital age.
This text is intended to inform and is not an investment recommendation.
Best regards,
Adam Jakobsen.
NBX Team.
