Is tanzanite a good investment? That’s the question on every collector’s lips. The blue-violet gemstone, known for its rarity and unique color, is soaring in popularity – and with that comes an increase in value. But is this surge in demand sustainable, or is it just a passing trend? As with any investment, there are risks involved, and it’s important to weigh the pros and cons before diving in.
For anyone unfamiliar with tanzanite, it’s a gemstone that was only discovered in the 1960s in the hills of northern Tanzania. It quickly gained a following due to its exotic beauty, but it’s also coveted for its scarcity. The gemstone is only found in a few small mines in Tanzania, making it truly one of a kind. This exclusivity has naturally driven up the price, and many investors are wondering if the trend will continue to hold. With the rise of alternative investments like cryptocurrencies, is tanzanite still a strong choice for those looking to make a profit in the market? Let’s take a closer look.
Ultimately, the decision of whether to invest in tanzanite will depend on a variety of factors – including personal taste, risk tolerance, and market trends. While it may not be for everyone, there’s no denying that this gemstone is a unique and intriguing addition to any investment portfolio. Whether you’re a seasoned collector or just starting out, it’s worth considering whether tanzanite’s rarity and beauty make it a good investment choice for you.
Benefits of investing in gemstones
Investing in gemstones is a unique and intriguing way to diversify your portfolio. Gemstones, such as tanzanite, can offer numerous benefits to investors, including:
- Stability: Gemstones have a low correlation with traditional asset classes, such as stocks and bonds, which can provide stability during market volatility.
- Tangible asset: Unlike other investments, gemstones are tangible assets that can be held, displayed, and enjoyed in their natural beauty.
- Limited supply: The supply of high-quality gemstones, like tanzanite, is limited, making them a rare and valuable commodity.
Gemstone investing may also offer potential for high returns, as they often appreciate in value over time. In fact, some gemstones, like tanzanite, have increased in value significantly in recent years.
The allure of tanzanite
Tanzanite is a particularly appealing gemstone for investors, as it is only found in one location in the world – the Merelani Hills of Tanzania – and its limited supply is nearing depletion. Additionally, tanzanite boasts a unique and mesmerizing blue-violet hue that has captivated collectors and investors alike.
According to gem experts, tanzanite has appreciated in value by over 50% in the past decade, making it a potentially profitable investment. However, it’s important to note that investing in gemstones, like any investment, comes with inherent risks and uncertainties.
Factors to consider before investing in gemstones
Before investing in gemstones, it’s important to do your research and consider the following factors:
- Quality: The quality of a gemstone can vary significantly and can greatly impact its value. Factors such as color, clarity, cut, and carat weight should be taken into consideration.
- Market demand: The demand for certain gemstones can fluctuate over time, affecting their value. Research market trends and the popularity of certain gemstones among collectors before investing.
- Authentication and certification: It’s important to ensure the authenticity of a gemstone before investing. Seek out reputable dealers and have the stone certified by a third-party gemologist.
Investing in gemstones can be a rewarding and unique addition to your investment portfolio. With their stability, tangibility, and potential for high returns, gemstones like tanzanite offer numerous benefits to investors.
| Gemstone | Price per carat (approximate) | Average annual appreciation rate (approximate) |
|---|---|---|
| Tanzanite | $500-$1,000+ | 5-10% |
| Emerald | $500-$1,000+ | 2-5% |
| Ruby | $1,000-$3,000+ | 5-10% |
| Diamond | $3,000-$10,000+ | 2-5% |
Table: Average prices and appreciation rates for popular gemstones (source: International Gem Society)
Historical Value of Tanzanite
Tanzanite is a precious gemstone that was discovered only recently in 1967. It is mined only in one place in the world, the Mererani Hills in Tanzania. The story of its discovery and how it got its name is fascinating. According to legend, the first tanzanite crystal was discovered by a Masai tribesman, Ali Juuyawatu, who was out herding his cattle. He stumbled upon a cluster of blue crystals that he thought were sapphires. The crystals were taken to a local merchant who recognized them as something new and unusual, not like any sapphire he had ever seen before.
Since then, tanzanite has become increasingly popular, especially after Tiffany & Co. recognized its value and named it after the country of its origin, Tanzania. The demand for tanzanite skyrocketed, and it has since become one of the most sought-after gemstones in the world.
- Tanzanite has a unique color that is rarely seen in other gemstones. It is a blue-violet hue that changes depending on the angle of the viewer.
- Tanzanite is a relatively new gemstone, which means it has limited supply. As such, it is becoming increasingly rare and valuable with time.
- Due to its limited supply, tanzanite is only be available for a limited time. Experts predict that the mines will be depleted in the next 20 to 30 years.
Despite being a relatively new entrant in the world of precious stones, tanzanite’s historical value is undeniable. Its unique color and limited supply make it an attractive investment option for those looking to diversify their portfolio. Additionally, as more and more people become aware of tanzanite and its value, the demand for the gemstone is only expected to rise.
Here’s a look at how tanzanite has performed as an investment asset in the past:
| Year | Price (per carat) |
|---|---|
| 1998 | $200-$400 |
| 2002 | $200-$500 |
| 2006 | $350-$700 |
| 2010 | $500-$800 |
| 2014 | $600-$1,000 |
| 2018 | $800-$1,200 |
From the table, it is clear that tanzanite has shown a consistent increase in value over the years, making it a good investment option. However, as with any investment, past performance is not a guarantee of future results, and it is crucial to do your due diligence before investing in tanzanite or any other precious stone.
Tanzanite Market Trends
Tanzanite is a rare gemstone found only in one specific location in Tanzania. Due to its beauty and limited availability, it has become a highly sought-after gemstone in recent years. However, like any other investment, it is important to be aware of market trends before investing in tanzanite. In this article, we will look at some of the latest trends in the tanzanite market.
- Increasing Demand: One of the biggest trends in the tanzanite market is its increasing demand. As people become more aware of this gemstone, they are beginning to see it as a valuable investment opportunity. This demand is reflected in rising prices as well as increased production.
- Quality Matters: Another trend in the tanzanite market is the importance of quality. As more people invest in tanzanite, they are realizing the importance of buying high-quality stones. This means that stones with superior clarity, cut, and color are in high demand and can command premium prices.
- Sustainability: Tanzanite is a gemstone that is mined in a very specific location in Tanzania. This makes it important for the industry to be sustainable to ensure future availability of the gem. There is a growing trend in the tanzanite market towards ethical and sustainable mining practices.
It is important to keep in mind that the tanzanite market can be affected by a number of factors such as political instability, world events, and global economic conditions. However, with its increasing demand, focus on quality, and commitment to sustainability, the tanzanite market is poised for growth in the coming years.
To gain a deeper understanding of the tanzanite market, let’s take a look at some of the latest statistics:
| Year | Average Price per Carat | Total Export Value (in USD) |
|---|---|---|
| 2015 | $485.58 | $46,043,822 |
| 2016 | $557.64 | $46,737,067 |
| 2017 | $550.65 | $47,756,597 |
| 2018 | $551.16 | $42,885,500 |
As we can see from the table, the average price per carat has remained relatively consistent over the last few years, with a slight increase in 2016. However, the total export value has fluctuated. It is important to note that these statistics only represent a small portion of the tanzanite market and should not be taken as a definitive predictor of future trends.
Durability of Tanzanite for Investment
When considering gemstones as an investment, durability is a crucial factor to consider. Tanzanite, a relatively new addition to the gemstone world, has an impressive hardness rating of 6.5 to 7 on the Mohs scale. This makes it a suitable gemstone for investment purposes, as it can withstand daily wear and tear when set in jewelry. Additionally, tanzanite is relatively resistant to damage from heat, light, and chemicals, making it durable enough to last for generations.
- One of the reasons tanzanite is so durable is due to its crystal structure. Tanzanite is a member of the zoisite mineral family and forms as orthorhombic crystals.
- Another factor that contributes to tanzanite’s durability is how it is often treated before being set in jewelry. Thermal treatment, a process that involves heating the gemstone to a high temperature, is commonly used to enhance tanzanite’s color and clarity. However, this treatment can also improve the gemstone’s durability, making it less prone to cracking or chipping.
- While tanzanite’s hardness rating is not as high as other precious gemstones like diamonds or sapphires, it is still a considerable level of durability that is suitable for investment purposes. As long as tanzanite is cared for properly, it can retain its beauty and durability for years to come.
It’s important to note that even if tanzanite is durable enough for investment purposes, it is still a precious gemstone that should be handled and worn with care. It is recommended to store tanzanite jewelry separately from other pieces to avoid any scratches or chips. Additionally, regular cleaning and maintenance can help preserve its beauty and durability.
| Durability factor | Tanzanite rating | Other precious gemstone rating |
|---|---|---|
| Hardness | 6.5 to 7 on the Mohs scale | 10 (diamond) / 9 (sapphire) |
| Resistance to heat | Relatively high | Relatively high |
| Resistance to light | Relatively high | Relatively high |
| Resistance to chemicals | Relatively high | Relatively high |
In conclusion, tanzanite is a suitable gemstone for investment purposes due to its impressive durability. It may not have the same level of hardness as other precious gemstones, but it can still withstand daily wear and tear when set in jewelry. As long as it is cared for properly, tanzanite can retain its beauty and durability for generations to come.
Rarity of Tanzanite
Tanzanite is a rare gemstone that was only discovered in the late 1960s. It is found exclusively in a small area near the Merelani Hills in Tanzania, making it one of the world’s rarest gemstones. This rarity is attributed to the fact that tanzanite is only found in one location, meaning that the supply of this stone is quite limited.
- Tanzanite is around 1,000 times rarer than diamonds.
- Only a small portion of tanzanite is suitable for being cut and polished, with most of the rough stones being unusable.
- The average lifespan of the tanzanite mines in Tanzania is estimated to be around 30 years, which further adds to its rarity.
In addition to its limited supply, tanzanite is also known for its unique coloring. Its blue-violet hue is caused by the presence of vanadium and is unlike any other gemstone in the world. This uniqueness and beauty make tanzanite even more of a rarity in the gemstone market.
To visually understand the rarity of tanzanite, let’s look at the following table which compares the annual production of tanzanite to some other popular gemstones:
| Gemstones | Annual Production (in carats) |
|---|---|
| Diamond | 1.5 billion |
| Ruby | 13 million |
| Sapphire | 50 million |
| Emerald | 20 million |
| Tanzanite | 2 million |
As you can see, tanzanite has an annual production that is significantly lower compared to other gemstones. This rarity has led to an increase in demand from collectors and investors alike, making it a valuable asset to add to any investment portfolio.
Comparison of Tanzanite with Other Gemstones for Investment
When it comes to investing in gemstones, it’s important to not only consider the aesthetic value but also the financial value. Tanzanite is often compared to other gemstones for their investment potential. Let’s take a closer look at some of the most popular gemstones and how they compare with tanzanite.
- Diamonds: Diamonds have been a symbol of luxury and wealth for centuries and are undoubtedly valuable. However, diamonds have seen a decrease in value in recent years due to oversupply and decreased demand. Tanzanite on the other hand, has shown a steady increase in value over time.
- Emeralds: Emeralds are a popular gemstone due to their rich green color and are often associated with royalty. However, emeralds are prone to inclusions and as a result, it can be challenging to find high-quality emeralds. Tanzanite, on the other hand, is relatively inclusion-free which makes it easier to find high-quality stones.
- Rubies: Rubies are known for their vibrant red color and are often considered a symbol of passion and love. However, rubies are relatively rare and expensive. Tanzanite, while also rare, is less expensive than rubies and can offer a higher return on investment.
While all of these gemstones have their own unique qualities, it’s important to consider the overall market demand and potential for growth when investing in gemstones. Overall, tanzanite offers a solid potential for return on investment due to its rarity, increasing demand, and long-term value.
For comparison purposes, here’s a table showcasing the current market value of tanzanite and other popular gemstones:
| Gemstone | Current Market Value |
|---|---|
| Diamond | $3,000-$20,000 per carat |
| Emerald | $300-$5,000 per carat |
| Ruby | $1,000-$10,000 per carat |
| Tanzanite | $500-$1,500 per carat |
As you can see, tanzanite offers a relatively affordable option for those looking to invest in gemstones without breaking the bank. However, it’s important to remember that market fluctuations and other factors can impact the value of gemstones over time.
Caring for your Tanzanite Investment
When it comes to investing in a Tanzanite gemstone, it is essential to take proper care to maintain its value over time. Tanzanite is a relatively soft gemstone that requires care and attention to keep its brilliance and color intact. Here are some tips for caring for your Tanzanite investment:
- Store your Tanzanite jewelry in a safe and secure place, preferably in a box or pouch that will prevent it from getting scratched or damaged.
- Avoid exposing your Tanzanite gemstone to high temperatures, such as leaving it out in the sun or wearing it in a sauna or hot tub.
- Do not wear Tanzanite jewelry while doing rough work or activities that could cause it to get bumped or scratched.
One of the most important things to keep in mind is to clean your Tanzanite gemstone regularly. Cleaning your Tanzanite properly will help to restore its natural beauty and protect its value. Here are some steps to follow when cleaning your Tanzanite:
First, use a soft-bristled brush to remove any dirt or dust that has accumulated on the surface of the gemstone. Next, prepare a bowl of warm water and add a small amount of dish soap. Dip the brush into the soapy water and gently scrub the Tanzanite. Rinse the Tanzanite with clean water and dry it with a soft cloth. Do not use harsh chemicals or ultrasonic cleaners on Tanzanite, as these can damage the stone.
By following these simple care instructions, you can help ensure that your Tanzanite investment remains a valuable asset for years to come.
| Do’s | Dont’s |
|---|---|
| Store your Tanzanite gemstone in a safe and secure place to protect it from scratches and damage | Expose your Tanzanite to high temperatures or extreme changes in temperature |
| Clean your Tanzanite regularly with a soft-bristled brush, warm water, and a small amount of dish soap | Use harsh chemicals or ultrasonic cleaners on your Tanzanite, as this can cause damage to the gemstone |
| Wear your Tanzanite jewelry on special occasions or when doing light activities | Wear your Tanzanite jewelry while doing rough work or activities that could damage the gemstone |
Remember that investing in Tanzanite is not just a financial decision, but also a commitment to care for and protect a valuable gemstone. By following the right steps, you can ensure that your Tanzanite will remain a beautiful and valuable investment for years to come.
FAQs: Is Tanzanite a Good Investment?
1. What is tanzanite?
Tanzanite is a blue to violet gemstone that was originally discovered in Tanzania. It’s relatively new to the gemstone market, having been first identified only in 1967.
2. Is tanzanite rare?
Yes, tanzanite is considered to be a rare gemstone. It’s found in only one location in the world, which is the Merelani Hills in Tanzania.
3. Is tanzanite more valuable than diamonds?
No, diamonds are generally more valuable than tanzanite due to their widespread popularity and demand. However, tanzanite can be more valuable per carat than diamonds of the same size and quality.
4. Is tanzanite a good investment?
Tanzanite can be a good investment, but it’s important to do your research and buy from reputable sources. The price of tanzanite can fluctuate based on supply and demand and changes in the market.
5. How should I store tanzanite?
Tanzanite should be stored separately from other jewelry to prevent scratching. It’s also recommended to keep it away from direct sunlight, high temperatures, and harsh chemicals.
6. Can tanzanite be used in jewelry?
Yes, tanzanite is a popular gemstone for jewelry such as rings, necklaces, and earrings. Its unique color can make it an eye-catching addition to any piece of jewelry.
7. How is the quality of tanzanite determined?
The quality of tanzanite is determined by its color, clarity, cut, and carat weight. The most valuable tanzanite has a deep blue color, high clarity, excellent cut, and larger carat weight.
8. Should I invest in tanzanite jewelry or loose stones?
Both options can be good investments, but it’s important to know your goals and what you’re looking for. Investing in loose stones may be more of a speculative investment, whereas investing in tanzanite jewelry may provide both an aesthetic and financial benefit.
Closing Thoughts: Thanks for Reading!
We hope this article answered some of your questions about investing in tanzanite. Remember, tanzanite can be a worthwhile investment as long as you’re informed and buy from reputable sources. Whether you’re looking to invest in loose stones or jewelry pieces, always do your research and consult with a professional before making any major purchases. Thank you for reading, and be sure to check back for more informative articles in the future!