Are Tanzanite gems & jewels worth investing in?
We have lots of choice on how to invest our savings.
We can choose a mix of pensions and investments, but some people also include Passion Asset investments, such as art, classic cars, fine wines, vintage watches or gems and jewellery. Here are my thoughts on Tanzanite as an investment.
The intense violet-blue hues of tanzanite can rival fine blue sapphire at a fraction of the price – and it is a much rarer stone! Occurring only in a small area of Tanzania, this variety of zoisite has become quite prominent … But does it make a good investment?
Any investment has risks, and, the price of tanzanite has fluctuated greatly since its discovery in 1967. The supply of the stone has wavered depending on the political situation in Tanzania. Events such as floods or mining challenges also have an immediate impact upon supply and price. Illegal mining and smuggling have also moved the price of tanzanite. In 2012 and 2013 large numbers of illegal miners entered the tanzanite mining areas and began to aggressively mine the easy-to-access areas. This occurred at a height of tanzanite prices. They then dumped a flood of illegal production into the market, causing a sharp decline in tanzanite prices during the following two years.
When prices change, commercial-grade gems usually experience the greatest price instability. These are the most abundant grades of tanzanite where price competition is highest. However, top-quality stones (such as the stones I invest in, which are in the top 1% of Tanzanite quality), especially those above 2ct, are very rare. As a general rule, they tend to retain their value in down markets and increase in value in rising markets.
At this point I’ll mention Amethyst … It used to be as expensive as Emerald or Ruby until the 19th Century when large deposits of it were discovered in South America, so there is always the risk with gems that a new discovery can mean supply can exceed demand and the value dips accordingly.
However since the ‘60s when Tanzanite was first discovered, there has been exhaustive searching with the latest technology elsewhere for new deposits. As no other source of Tanzanite has been discovered to date, and, at the current rate of mining, estimates suggest that the mines will be depleted within the next 25 years. So now could be a good time to invest in Tanzanite.
When a mine is depleted, the market turns to selling investment gems and the price sky-rockets. (This has already happened with the top grade 'windolene blue’ Brazilian Paraiba Tourmaline).
Personally, I’ve noticed a steady increase in the cost of Tanzanite since I started buying pieces in 2016/2017. In fact some of the carat sizes I used to buy I’m now priced out from unless I start making jewellery in the £25k plus bracket.
I only buy the top Cuts, Clarity and Colour in Tanzanite - all investment grade.
What about the other colours of Tanzanite?
Normally Tanzanite comes out of the ground a brownish colour and is heated to bring out the blue, but sometimes ‘Fancy’ Tanzanites are found naturally in Purple, Pink, Yellow, Green (and occasionally natural blue if formed in a thermal vent - but that is tricky to prove). Therefore a nicely saturated ‘Fancy’ is at the rarer end of an already rare gemstone.
Why should I invest in Tanzanite jewellery from Jade Thomas Jewellery?
Every Tanzanite I own comes with full provenance - It not only comes laser etched and with a Gem Report, but also a Mining Report showing when and where it was mined and a photo of it in its rough state, and an Insurance Valuation certificate. Which all helps with investment interest and supply chain / ethics transparency.
Now with investing in gemstones, obviously there are lots of choices as to what to do choose - buy and keep gems in the rough; buy them faceted but loose; or buy them set in jewellery and enjoy them whist they are yours!
You can guess which I prefer!
Check out my collection of investment grade Tanzanites below:
