• “Experience in risk-taking played a big role in the valuation of this stone’

• It meets the 3Cs – Clarity, Colour and Carat

• ‘It’s a perfect natural asset for the super-rich and celebrities to invest in’

by Sanath Nanayakkare

Subash Karunarathne, chairman at Subash Gems in Pelmadulla told The Island yesterday that he purchased the 99-carat Blue Sapphire for Rs. 430 million because it was a nature’s masterpiece, and it could take decades for another one of such unique characteristics to be found.

Subash bought this precious rare stone found in a gem-mine at kahawatte, at an auction held last week where officials of the National Gem and Jewellery Authority (NGJA) certified it as a 99-carat natural Blue Sapphire.

When The Island visited him at his residence in Pelmadulla, a lot of gem miners had gathered there to see how much Subash would be willing to pay for their gem stones, nevertheless, he gave us his time saying that he wanted to share his views with the mainstream media which wouldn’t sensationalise the deal and look at it objectively and realistically.

During the interview Subash said:

“Experience in risk-taking played a big role in the valuation of this stone. Also, the great confidence I have about the international growth markets including the United States, the European Union, India and the Middle East for rare precious stones encouraged me to bid a high price for it. You can’t avoid risks nor guarantee a successful return all the time, but knowing your trade is crucial to making it work.

Whichever gem stone you choose to invest in, you need to know that you are never 100% safe from losing money because risks and returns go hand in hand in the gem industry. However, it is commonly known that the more risks you are willing to take the higher the returns. Taking risks is a choice. Without taking risks, you’ll never know what you’re capable of achieving. I am confident that I can make a significant gain from this investment.”

“Global investors would look at the price tag on this stone in the context of supply and demand because natural resources such as this stone are hard to come by anywhere in the world. Furthermore, the discovery of this stone is a very positive thing for Sri Lanka gem industry and it will boost Ceylon Sapphires’ international fame.”

When asked whether he was sure he offered the right price for the stone, Subash said,” I see value in it that goes beyond the price because price is not always the value. This blue sapphire is sparkly and brilliant and rare. There is no doubt it has an aura making it unique and special. And it is a perfect natural asset for the super-rich and celebrities to invest in. They can use it to show off their wealth or as a tangible investment. Besides, on the financial side of things, rare gems provide a hedge against inflation and are crisis-resistant. It will never depreciate in value. This blue sapphire meets 3 vital Cs- Clarity, Colour and Carat. The fourth C is the Cut, and it is a delicate job for a clever craftsman of international standards to maximize its value.”

In response to a query posed by The Island, a spokesman at Subash Gems said that the deal at the auction was subject to the tax laws of the country. “The selling party got their amount after the deduction of withholding tax, and we made them the payment with the cash flow after taxes,” he said.