Pink Sapphire – no heat, 4.02ct

Investment Thesis 📝

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Strong Return Opportunity Supported by Market Data
This investment is structured over a 5–7 year horizon, leveraging historical sales data and recent market trends for unheated pink sapphires.

Balanced Scenario (CAGR, 2025–2030):
→ €78,680 | CAGR: 14.3% p.a. (after fees)

Optimistic Scenario (CAGR, 2025–2030):
→ €134,138 | CAGR: 23.3% p.a. (after fees)

Historical CAGRs for comparable sapphires average 14.3% (2010–2023), with the asset acquired close to fair market value, providing upside potential. The projected Sharpe ratio of 1.07 reflects a strong risk-adjusted return, supported by robust demand for high-quality, untreated pink sapphires.

Risk Profile and Volatility Benchmarking
Risk modeling applies the standard deviation from comparable untreated sapphires (2010–2023), multiplied by 1.5x for added protection, resulting in a conservative 12.4% volatility estimate.
Value at Risk (VaR): There is a 95% probability the asset’s value will exceed €37,400 after 5 years, offering meaningful protection against capital loss.

Asset Acquired Below Market Value via B2B Channel
The purchase price of €30,300 (plus fees) is close to the current B2C market value, based on a conservative benchmark using a less intense comparable stone. This approach provides potential upside, as the asset’s vivid color and no-heat status are likely to command a premium on resale. Acquisition via a B2B channel ensures competitive pricing and increased margin potential.

Distinctive Features Enhancing Market Value
This vivid pink, unheated sapphire is rare and highly sought-after, especially in the no-heat category, which commands a market premium. Its 4.02ct size, round cut, eye-clean clarity, ALGT certification, and Madagascar origin further enhance its desirability. Demand is driven by collectors and investors seeking natural, untreated stones with vibrant color and clear provenance.

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 such high-quality gemstones. 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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This 4.02ct no-heat pink sapphire from Madagascar is a certified ALGT gemstone of exceptional quality—vivid pink with purple undertones, round cut, and eye-clean clarity. Free from thermal enhancement, its natural beauty commands a premium in global gem markets. With dimensions of 8.35 x 8.28 x 7.38 mm and an extremely rare round shape, this piece sits at the intersection of optimal gem aesthetics and long-term collectibility.

What sets this stone apart is not only its color, clarity, and untreated nature, but also the precise balance of rarity and recognizability. Unheated pink sapphires of this intensity are seldom found in this size and cut, and most comparables currently available on B2C platforms suffer from inferior tone, clarity, or color saturation. This stone’s deep pink hue with purple overtones makes it visually stand out in its category.

With a purchase price of €27,064 via a B2B channel (vs. B2C values closer to €30,300+), the asset enters the portfolio at a conservatively benchmarked price—leaving room for margin expansion upon resale. Historically, comparable sapphires have achieved CAGR returns between 12–23% over the last 13 years, supported by increasing global demand for natural, untreated colored stones. Certified, conserved, and clearly positioned for long-term value growth, this sapphire’s rarity is more than aesthetic—it’s strategic.

Conclusion 🎯

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With a Sharpe ratio of 1.07, low volatility, and strong historic CAGR, this no-heat pink sapphire blends elegance with investment-grade resilience. Conservatively priced, structurally rare, and globally desired, it’s a timeless gemstone backed by sound data and scarcity logic. A poetic asset—with a compelling payoff.