Red Ruby – No Heat, 1.508ct

Investment Thesis 📝
 

Metric	Value
Investment horizon	5–7 years
Expected CAGR (balanced)	13,6 % p.a. after fees
Ambitious CAGR	25,0 % p.a. after fees
Entry discount	32% below market value
Sharpe ratio	1,1 (vs. SMI: 0,61)
Value at Risk (VaR)	95% probability that €23,200 will be exceeded
Standard deviation	12,4 %
Risk rating	A (8,8/10 – low risk)

 

• 5–7 Year Horizon: Aimed at capturing long-term value appreciation of an untreated ruby.

• 13.6% CAGR (Balanced): Based on a 70% probability of replicating the historical CAGR of 14.3% (2010–2023), enhanced by a strong acquisition discount.

• 25.0% CAGR (Optimistic): Based on a 90% probability of replicating the historical CAGR of 23.3% (2016–2019), enhanced by a strong acquisition discount.

• ~32% Discount to Fair Value: Acquired well below B2C benchmark pricing, verified through four comparable gem sales.

• Sharpe Ratio of 1.1: Excellent return relative to volatility, outperforming traditional asset classes including the Swiss Market Index (0.61).

• 95% VaR Threshold: Model indicates high downside protection, with a 95% chance of exceeding €23,200 after 5 years.

• Standard Deviation (12.4%): Low-to-moderate volatility in the context of hard asset investments.

• Risk Rating “A”: Strong profile for investors seeking a tangible, low-volatility asset with proven historical growth.

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 sapphires, 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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Red rubies have long held a unique place in the world of gemstones, combining emotional resonance with enduring financial value. Known as the “king of gemstones,” rubies are celebrated for their deep, vivid color—often associated with passion, strength, and prosperity. Their appeal stretches across cultures and centuries, with demand rooted not only in aesthetics but also in historical symbolism and tradition. Today, rubies rank among the most sought-after colored gemstones, often surpassing sapphires and emeralds in terms of value per carat.

One of the key factors driving investment interest in rubies is their scarcity. Fine-quality rubies, particularly those displaying the highly prized “pigeon blood” hue, are exceptionally rare. Unlike diamonds, which benefit from large-scale production and consistent supply, rubies are found in much smaller volumes, and untreated stones are even less common. This natural rarity creates a supply-demand imbalance that underpins long-term price stability and growth.

Beyond scarcity, rubies benefit from strong cultural and institutional recognition. They are staples in high jewelry collections by houses such as Cartier, Van Cleef & Arpels, and Graff, ensuring continuous visibility at the highest levels of the luxury market. Auction records also reflect this desirability, with exceptional stones consistently achieving top-tier prices at Sotheby’s and Christie’s.

For investors, red rubies represent both diversification and resilience. Their intrinsic beauty, combined with scarcity and global demand, makes them a tangible asset capable of preserving and potentially growing wealth across generations. Collecting rubies is not only a financial decision but also a participation in a legacy of elegance and prestige.

Conclusion 🎯

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With certified origin, natural no-heat status, and a 32% entry discount, this ruby offers intrinsic value and robust appreciation potential over a 5–7 year horizon. Its strong risk-return profile makes it an excellent addition to diversified long-term portfolios.