10.94ct Violet Sapphire, Sri Lanka, Unheated
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Main reasons to invest
Return potential: An investment of €500 could reach an estimated value of €1,242 in 7 years.
Cost-to-return ratio: After deducting 2.4% in annual total costs, your net return could reach 13.9% per year.
Discount-Driven Upside Potential: Exceptional 10.94 ct untreated color-change sapphire from Sri Lanka, shifting from violet to pink. Acquired 35.8% below reference value, combining rarity and attractive entry pricing.
Description
| Metric | Value |
|---|---|
| Investment Horizon | From 5 to 7 years (target exit 2031–2033) |
| Potential net ROI p.a. (Balanced) | 13.9% p.a. |
| Potential net ROI p.a. (Ambitious) | 16.3% p.a. |
| Price Verification (prior fees) | -45.3% vs. market value |
| Price Verification (after fees) | -35.8% vs. market value |
| Sharpe Ratio | 0.80 |
| Value at Risk (VaR) | 98.9% probability to exceed initial investment after 7 years |
| Standard Deviation | 15.4% |
| Track Record (Comparable Sales) | 14 sales points |
| Overall Risk Rating | A (9.2 / 10 – Strong Stability Profile) |
- 5–7 year horizon: Planned exit between 2031 and 2033 to benefit from long-term scarcity and collector demand cycles.
- 13.9% net ROI p.a. (balanced): Assumes a 75% probability of achieving the historical 9% CAGR (06/2010–06/2023, Doris Hangartner presentation), enhanced through disciplined entry pricing.
- 16.3% net ROI p.a. (ambitious): Assumes a 100% probability of achieving the historical 9% CAGR over the investment horizon.
- -45.3% entry discount (prior fees): The asset is priced at €27,450, representing a substantial discount to reference market value.
- -35.8% entry discount (after fees): Even post-fees (€32,150), the pricing reflects a meaningful margin of safety.
- Sharpe Ratio 0.80: Ex-ante Sharpe ratio of 0.8045 indicates a moderate but efficient risk-return profile.
- VaR 98.9%: According to the Value at Risk model, there is a 98.98% probability the asset exceeds the initial investment after 7 years, highlighting strong capital preservation characteristics.
- 15.4% standard deviation: Volatility assumption applied using comparable datasets, resulting in low-to-moderate variability consistent with the gemstone segment.
- 14 comparable sales: Growth and pricing assumptions are based on 14 key market comparables.
Colored gemstones have long captivated investors and collectors alike, offering a unique blend of aesthetic beauty and financial security. Unlike traditional assets, their value is driven by rarity, cultural significance, and increasing global demand. The market for fine emeralds, sapphires, spinel and rubies has seen a steady appreciation, supported by limited supply and growing interest from emerging markets. Unlike diamonds, where synthetic alternatives pose a pricing challenge, top-tier natural colored gemstones maintain strong value retention due to their individuality and limited production. With auction records continuously being set, investing in premium colored gemstones is not just about appreciation—it’s about owning a tangible piece of history with enduring worth.
This 10.94 ct untreated color-change sapphire represents an investment in geological rarity at its highest level of purity. Formed over millions of years in Sri Lanka—historically one of the world’s most respected sapphire origins—the stone combines two of the most powerful value drivers in the gemstone market: completely untreated status and a natural color-change effect. Unlike the majority of sapphires enhanced through heat treatment, this gem remains entirely untouched, preserving its original crystal structure and authentic character. For sophisticated collectors, such natural integrity significantly elevates long-term desirability.
Its rare ability to transition from refined violet in daylight to vivid pink under warm light is not merely aesthetic—it is scarcity made visible. Color-change sapphires constitute only a small fraction of global sapphire production, and examples above ten carats become exponentially rarer. As global mining output declines and untreated large stones become increasingly difficult to source, structural supply constraints support long-term resilience.
Beyond rarity, high-grade gemstones offer strategic portfolio advantages. They are portable, globally tradable, and carry one of the highest value densities of any tangible asset. Storage costs are minimal relative to value, and ownership remains discreet and private. Growing demand from Asian and Middle Eastern collectors for untreated stones further reinforces international liquidity. The combination of disciplined entry pricing, geological uniqueness, and enduring cultural prestige positions this sapphire as a compelling long-term store of value within a diversified alternative asset portfolio.
Expert
Carat Investments is a Swiss-based investment boutique specializing in real assets, with a primary focus on colored gemstones. Founded on a heritage of excellence and discretion, the company bridges centuries-old gemstone expertise with modern financial acumen to offer clients exclusive, inflation-resistant investment opportunities. Built on values of sustainability, integrity, and long-term vision, Carat Investments empowers clients to preserve and grow their wealth across generations.
