Investing in Tanzanite
Tanzanite has a unique niche that makes it very attractive for investment and its rarity and exclusivity makes tanzanite and tanzanite jewellery excellent investment options. It is one of the world’s rarest gems, found in one place – a short area at the foothills of Mount Kilimanjaro in Tanzania called Merelani. Scientists and gemologists believe that it was the unique conditions brought on by the eruption of Mount Kilimanjaro that resulted in the formation of tanzanite. The combination of elements and chemicals present in the ground, along with extreme pressure and high temperatures created one of the world’s most beautiful gems. Because of the specific conditions that lead to the formation of tanzanite, scientists believe that it is highly unlikely tanzanite will ever be discovered in another location.
There is no other investment that will yield as great a return as investing in tanzanite of the highest quality. The demand for tanzanite is ever increasing. Like in all industries, supply and demand are the main factors contributing to a commodity’s value. In the case of tanzanite, both the supply and the demand contribute to its high value. Thanks to extensive marketing to promote this beautiful gem, the world has fallen in love with tanzanite, making loose tanzanite stones and tanzanite jewellery very desirable. The demand for the stone has become increasingly high, especially in the United States. The supply of tanzanite, however, is limited. As it is only found in one place in the world, and it is expected to become depleted in the next 10 to 12 years, the supply is becoming less and less.
We are living during what has become known as the 'Tanzanite Generation'; those fortunate enough to already own tanzanite, and those who acquire it in the next decade or so, will be the only first-time owners. Thereafter, tanzanite will become a precious heirloom passed from generation to generation.
With the demand increasing and the supply decreasing, the value of tanzanite is expected to increase exponentially in the upcoming years. Already increasing in value every year, tanzanite has always appreciated as time goes by. But many investors believe that the stone’s real value lies in the potential for the gem to reach colossal prices once it has been mined out. In a similar situation, Paraiba tourmaline was found in Brazil in the 1980s, and was mined out by the mid-1990s. Today, it can reach up to US$ 20 000 per carat.
Buyers looking to invest in tanzanite are advised to consider a few different factors when embarking on an investment:
Colour: the more intense and vivid the colour, the higher the value of the stone. Thus, tanzanite stones of deep blue or violet colour are more likely to yield a larger return on your investment.
Carat weight: the larger the stone, the greater its value.
Cut and shape: the shape of the tanzanite will not have an effect on its value, and investors should select shapes that appeal to their personal preferences. The cut of the stone, however, is of great importance. The better the cut, the higher the value of the stone. Invest in tanzanite that offers fantastic light return and maximum brilliance.
There are various channels through which tanzanite can be purchased – from the internet to retail stores. When buying tanzanite in South Africa, or anywhere else in the world, the most important thing is to find a reputable source that offers high quality tanzanite at fair prices. Be sure to ask for Tanzanite International certification, and be certain of the gem’s colour, cut, clarity and carat weight grading before purchasing.
The beauty of investing in tanzanite is that this item of exquisite beauty can be worn and enjoyed while its value increases. Shimansky offers a wide range of tanzanite jewellery creations, as well as loose stones. Find your perfect tanzanite earrings, rings, necklace or loose stone at your nearest Shimansky store.