Cobalt Spinel, 2.28ct

Valuation Summary 📝

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To ensure the competitiveness of the investment, we conducted a thorough verification of the purchase price by analyzing B2B and B2C emerald prices. Our analysis confirmed that the price offered, inclusive of all associated fees, is highly competitive and corresponding with the B2B prices that is 40% below the B2C price. To estimate the potential ROI, we used the annualized return of Spinel gems (5ct) for the period of 2015 to 2025. For our conservative scenario, we assumed the value of the stone would grow at the rate of Swiss inflation, reflecting a defensive approach. In the balanced scenario, we assume a 40% probability of realizing a 16.2% (CAGR 2015 - 2025) annual return for the next 7 years. Finally, in the ambitious scenario, we assume a 60% probability of realizing a 16.2% (CAGR 2015 - 2025) annual return for the next 7 years. These potential returns over the next seven years, under both the balanced and ambitious scenarios, are further enhanced by the 40% discount at which this beautiful stone is offered compared to the current B2C market prices.

Exit Options at Maturity 🚪

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We will manage the exit strategy in collaboration with our expert on behalf of our investors, ensuring the best possible outcome based on market conditions at the time. Depending on the prevailing market situation, the stone will be sold to a private buyer or offered as single lots at a gem-auction. An auction is considered if the price has developed to the point where the minimum bid matches the market value and there is high demand for works by the artist. Both options are carefully considered, and we will choose the one that maximizes the return for our investors.

Why Invest in This Category? 🎨

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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.

Why Invest in This Asset? 💚

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Cobalt spinel is among the most elusive and sought-after gemstones in the world, with the Mahenge region of Tanzania known for producing the highest-quality specimens. Unlike more abundant gems, cobalt spinel occurs only under unique geological conditions, making its appearance exceptionally rare. Its distinctive neon-to-violet blue hue, created by trace amounts of cobalt, is natural and untreated — a characteristic that significantly elevates both desirability and value.

What sets this specific 2.28ct spinel apart is not just its weight — which is impressive on its own — but also its unenhanced nature. In a market saturated with heat-treated gems, untreated stones hold premium status among collectors and connoisseurs, often commanding significantly higher auction prices. Furthermore, Tanzanian cobalt spinels are rarely found above 2ct in fine quality, and many mines in Mahenge are now depleted or in limited operation, adding urgency to their acquisition.

The stone’s crystalline clarity, combined with its vivid saturation and scarcity, places it at the intersection of luxury and investment potential. Much like fine art, these stones are admired not only for their beauty but for their store of value, particularly in uncertain markets where tangible assets with global appeal become safe havens.

In summary, this Cobalt Spinel represents a rare opportunity to invest in a high-grade, naturally occurring asset class whose supply is finite, whose beauty is undeniable, and whose trajectory in value has shown consistent growth.

Context in Time ⏳

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Since 2015, cobalt spinels from Mahenge have emerged as a standout category in the colored gemstone market. With increasing global attention on rare untreated stones and declining new supply, these gems have moved from collector obscurity into the spotlight, catching the attention of seasoned investors and luxury buyers alike.

Conclusion 🎯

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This 2.28ct Cobalt Spinel offers a compelling investment case, combining rarity, provenance, and pricing power. With a 40% discount to retail, proven historical returns, and a conservative valuation model, it presents a rare asymmetry between risk and reward. For discerning investors, this is a chance to own scarcity—strategically and beautifully.