Editor’s Note
This article outlines the founding motivation of Provenance Proof AG, a Gübelin family startup. It highlights the industry’s need for transparency and traceability in gemstones and precious metals, driven by Raphael Gübelin’s vision to leverage technology for disclosing origins and enhancing supply chain clarity.
Provenance Proof is a family-owned and startup company, Gübelin. It all began with the demand for greater transparency and traceability in the gemstone and precious metals industry. Innovation has always been a core element in the tradition of the company Gübelin. The vision of Raphael Gübelin to more accurately disclose the origin of gemstones and make the supply chain more transparent through cutting-edge technology was the driving force behind Provenance Proof launching the initiative in 2017. This allows for testing the entire value chain of the gemstone industry to enhance transparency and trust.
In 2019, the world’s first blockchain-based platform was launched, enabling the mapping of the journey of every gemstone, from rough stone to finished jewel, in a tamper-proof manner. In the same year, Provenance Proof AG was established as an independent subsidiary of Gübelin to serve as a neutral third party, ensuring transparency in the gemstone and precious metals industry.
Blockchain can be described as a kind of digital ledger. All stakeholders involved in a gemstone’s value chain add their own ‘page’ containing their information. Simultaneously, the Provenance Proof Blockchain can create a digital inventory for each mined gemstone along the entire supply chain. A unique ‘digital twin’ is created for each gemstone, which can only be viewed by the gemstone’s owner. Blockchain technology provides a high level of data encryption and immutability. This allows authorized individuals to gain a deep understanding of the supply chain and the gemstone’s origin. Consumers who own the ‘digital twin’ of their purchased gemstone not only obtain complete documentation but also gain access to fascinating information about the world of gemstones that was previously inaccessible.
The advantages of this technology are diverse. First, complete traceability provides transparency and trust regarding a gemstone’s origin. Consumers can be assured that the raw stones are ethically mined and fairly traded. Furthermore, using the blockchain solution helps avoid counterfeit or illegally traded gemstones, as every gemstone is given a unique digital fingerprint. Finally, because all information on the blockchain is available in real-time and the technology prevents manipulation, it helps improve the efficiency and security level of the supply chain.
A good example of our solution is the collaboration with Moyo Gems, a local initiative selling ethically mined gemstones from Tanzania. The goal of this collaboration was to transparently improve the working conditions of small-scale artisanal miners, primarily women, in the Tanzanian gemstone industry. The results were as follows: This transparency pressured local authorities to make greater efforts for women’s safety. Demand for such traceable gemstones also increased significantly. Both jewelers and end customers are prepared to pay a higher price for the transparency created. This successful collaboration is an impressive case demonstrating that true value can be created for all stakeholders through transparency and ethical trade.
For decades, Lucerne has established itself as a globally significant location for the luxury watch and precious metals industry. In addition to major retailers located in central Switzerland, Lucerne holds an important position on the gemstone industry map. Gemstones sent to Lucerne from around the world are analyzed at Gübelin’s Gem Lab on behalf of renowned auction houses, jewelry brands, and museums. By operating our company in the same city as these institutions with such a special status, we gain additional trust and reputation, opening doors to the global market. For many, Lucerne is a city closely associated with gemstones and watches.
Furthermore, thanks to its central location and easy accessibility, Lucerne is also a compelling city as the headquarters for Provenance Proof. This allows us to build an optimal network not only within Switzerland but also in all directions across Europe and the world. Additionally, our visitors, including clients and business partners, highly appreciate Lucerne’s charm and enjoy their visit experience.
