Lavender Sapphire – No Heat, 7.17 ct

Investment Thesis 📝

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1. Exceptional Purchase Discount Creates Immediate Value Buffer
The lavender sapphire is acquired at a 29% discount to current B2C market valuations, enabled by a trusted supplier with strong upstream access and B2B pricing advantages.
- Average retail value: €21.3k
- Purchase price: €15.2k pre-fees
- Purchase price after fees: €17.5k

This attractive entry point enhances the margin of safety and significantly improves the asset’s Sharpe ratio. With a 5–7 year horizon and a base case CAGR of 14.7% p.a. (net of platform and variable costs), the asset is positioned to outperform traditional assets, while offering a unique exposure to hard luxury.

2. Asset Quality: Rare, Untreated Ceylon Sapphire Drive Long-Term Scarcity Value
The stone is a certified, eye-clean, no-heat sapphire sourced from Sri Lanka (Ceylon)—a premier origin known for consistently producing high-grade stones.
Its 7.17 ct size, paired with an oval cut and purplish-blue (lavender) coloration, places it in a narrow category of collector-grade gems rarely seen in fractional formats.
The presence of an ALGT certificate, combined with its untreated status, reinforces marketability and supports a scarcity-driven value narrative, especially within high-net-worth and institutional collector segments.

3. Valuation: Return & Risk Scenarios using VaR
VaR modeling based on historical gemstone performance (CAGR 2010–2023: 9.2%) outlines the following return scenarios:

• Base Case: €46.5k in 7 years → 17.3% CAGR
• Optimistic Case: €64.7k in 7 years → 23.0% CAGR

The analysis signals a favorable risk/return balance, with downside protection and a Sharpe ratio of 0.90, highlighting strong expected performance across market conditions. Even net of all fees, the base case return equates to a solid 14.7% CAGR.

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 fine unheated stones. 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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The offered sapphire is a 7.17-carat unheated gem of Sri Lankan origin, known globally as the premier source for high-quality sapphires. Certified by ALGT with no signs of heating—a major premium in the gem world—it retains its full geological purity and intrinsic value. Most sapphires on the market are heat-treated to enhance color, but this piece is entirely natural, which places it in the top 1–2% of all sapphires traded globally.

Its lavender hue, described as purplish-blue, delivers emotional and collector appeal across both Western and Asian markets. The gem is eye-clean, with a finely cut oval shape (12.76 x 10.98 x 5.97 mm), giving it exceptional brilliance and versatility for high-end jewelry.

The acquisition price of €15,187 (or €2,100/ct) positions it very favorably against online comparables: a 7.78ct violet sapphire with more inclusions is listed at ~$24,000 on The Natural Sapphire Company, while others with less saturation or more visible flaws are priced even higher per carat.

With rising awareness of untreated stones and growing demand for non-standard sapphire hues—especially lavender, padparadscha, and cornflower blue—this stone is well-poised for appreciation. Furthermore, sourcing unheated sapphires of this clarity and size is becoming increasingly difficult due to rising extraction costs and tighter mine regulations in Sri Lanka. The 7ct+ weight class is ideal for both collectors and HNW buyers seeking statement gemstones with growth potential and market scarcity.

Context in Time ⏳

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With the colored gemstone market gaining traction among alternative asset investors, unheated sapphires—particularly those over 5ct—are in high demand. The scarcity of larger untreated stones and consumer preference for natural over enhanced materials give this sapphire long-term appeal in a market shifting toward authenticity.

Conclusion 🎯

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The Lavender Sapphire – No Heat offers investors and collectors a beautiful balance of purity, rarity, and pricing power. With growing global interest in untreated colored stones, this 7.17ct gem delivers both emotional allure and investment merit—secured in crystal, sealed in scarcity, and ready to shine in any portfolio.