However, there are other ways to generate value within the portfolio without having to sell the gemstones within it. Nowadays there are finance facilities which will offer you a yearly interest rate for ceding your prized asset into their fund. Finance can be structured to secure precious stones in return giving the asset holder a return on investment. The way the structure works is that owners of latent/non performing assets can assign their gemstones/precious metals etc., into these specialized funds. Asset holders still retain ownership and sit back and let the assets yield an annual return. This is a great way to unlock value within the asset.
There are many humanitarian and renewable energy projects worldwide who need funding to help communities thrive and prosper. Gemstones can help securitise a structured funding model for projects come to life. They become collateral. Collateral backs a project and with the finance model in place, banks can structure a loan to fund the projects. Thereby not only are the asset owners unlocking latent value within the asset, they could also be contributing to good causes by assigning their assets into the fund which in turn enables the program to fund projects.
There are other hard assets that could be accepted include;
- Government Bonds
- Precious Metals
- Rare Earth Metals
- Base Metals
- Real Estate / both commercial and residential properties