From Rough Stone to Asset Protection: Precious Gems as an Investment Strategy
Interview with Dr. Thomas Schröck, Managing Director of The Natural Gem GmbH
They are considered fascinating, exclusive – and increasingly as stable tangible asset investments: gemstones. In a world of economic uncertainties, their significance for long-term asset protection is increasingly coming into focus. The Austrian company The Natural Gem GmbH specializes in certified gemstones as a capital investment. In conversation with Dr. Thomas Schröck, founder and managing director of the company, it's about the transformation of investment culture, international markets, digitalization, sustainability and future visions.
Wirtschaftsforum: Dr. Schröck, how long has The Natural Gem been in existence and how has the company evolved?
Dr. Thomas Schröck: I have been in the gemstone business for 35 years. In 2008, the idea emerged to offer gemstones as an investment product – inspired by a customer looking for a mobile and stable-value alternative to real estate and gold. The Natural Gem has been in its current legal form since 2018. Today, I own 85% of the company through my own holding, with the remaining 15% held by a Swiss investor.
Wirtschaftsforum: How large is your company currently, and how is it structured?
Dr. Thomas Schröck: We are a small, efficient team of seven employees. Our turnover is currently around 10 million EUR. We offer all services related to natural-colored gemstones – from the composition of a portfolio to storage and jewelry manufacturing. Our gemstones start at 2,500 EUR, with some pieces valued up to 800,000 EUR. We have approximately 3,000 gemstones in stock with a total value of about 15 million EUR.
Wirtschaftsforum: What makes your gems particularly special?
Dr. Thomas Schröck: We specialize exclusively in naturally colored gemstones – that is, stones that are untreated and exist in their natural color. This applies to only about 3 to 5% of the rubies, sapphires, and emeralds mined worldwide. All stones are externally certified, especially by Swiss laboratories. These have established themselves as an international standard. For gemstones over 20,000 EUR, a Swiss certificate is a matter of course for us.
Wirtschaftsforum: How do you ensure safe storage and consultation for your customers?
Dr. Thomas Schröck: We provide access to duty-free storage in Liechtenstein and Singapore. The annual costs for storage and insurance there are about 1 to 1.5% of the value of the goods. In addition, we advise on bank safe deposit boxes and safe solutions. We facilitate the contact, but only work with trustworthy partners. If desired, we also assist with insurance. Our claim is: Full service, worldwide, discreet and reliable.
European Business: Who are your clients and how is the resale process?
Dr. Thomas Schröck: Our clients range from private investors with 10,000 EUR to family offices and ultra-high-net-worth individuals. Almost all of them are already investing in gold and are looking for a complementary investment. We recommend a holding period of at least five years. Afterward, we offer buybacks. Alternatively, there are options through international dealers, auction houses, or larger jewelers. A sale is always possible – but without speculation. Precious stones serve as wealth preservation.
Wirtschaftsforum: How do you reach your target groups?
Dr. Thomas Schröck: Through three channels: First, through asset managers and financial advisors. Second, through our own lectures and events – we regularly organize info evenings as part of our tour across Germany. Third, through our online shop for smaller purchases. Additionally, we heavily use social media: YouTube, Instagram, and TikTok. Information is our priority – not the quick sale. That is our philosophy.
Wirtschaftsforum: What role do digitalization and sustainability play for your company?
Dr. Thomas Schröck: Our internal processes are digitalized – with ERP and CRM systems. All certificates are stored online. Furthermore, through our subsidiary in Liechtenstein, we have developed a tokenized portfolio of precious stones. Blockchain is increasingly in demand, for example for seamless traceability. In terms of sustainability, Sri Lanka is our showcase country – there we can fully document the mining process. In regions like Mozambique or Madagascar, it is more challenging, but we only work with long-term partners.
Wirtschaftsforum: What are your goals for the future?
Dr. Thomas Schröck: We want to further tap into the family office market. Globally, there are around 10,000 such structures with a total wealth of about 6 trillion EUR – so far, only 0.4% of this is invested in precious stones. For comparison, about 4% is invested in gold. This imbalance shows the enormous potential we see here. Additionally, we are holding discussions with institutional investors, about the possibility of certificated products or further tokenized portfolios. Geographically, we also aim to grow – we already deliver worldwide, but want to expand our presence in the USA, South Africa, and Southeast Asia. In parallel, we are investing in the technological development of our offerings, such as digital provenance verification via blockchain.