The gem that fuelled a £6 billion asset sheet and is now worth just £100

This tale, which could become a totemic example of the financial boom and bust, involves Wrekin Construction, from Shropshire.

As Management Today explains:

Wrekin Construction, a builder based in Shropshire, had a slightly unusual balance sheet: its biggest asset was a massive uncut purple ruby, known as the Gem of Tanzania, which was supposedly worth £11m…

Someone called David Unwin used the gem to finance a short-lived rescue of the loss-making firm back in 2007. Somewhat dubiously, Wrekin apparently used this £11m valuation to issue preference shares and transform the state of its balance sheet; according to trade mag Contract Journal, £8m of liabilities became £6bn of assets in the space of just six months, which presumably made it easier for the company to trade and borrow. And as the company (which was once a £100m business) collapsed in the recession, the gem was soon the most valuable asset on the books…

After all the big gem dealers turned their noses up at it, it’s now for sale in a magazine aimed at crystal healing advocates – and some experts reckon it might garner a measly £100.