In this article, we’ll articulate our opinion and belief, as to why Tanzanite, among other gemstones such as sapphire or emerald, is representing an interesting addition to the asset mix of a portfolio.

In the world of gemstone investments, tanzanite stands out as a captivating and unique option. Renowned for its mesmerizing blue-violet hues, tanzanite is not only a stunning gemstone but also a valuable addition to a diverse investment portfolio. To truly understand its investment potential, it is essential to delve into the history of tanzanite and the story of the TanzaniteOne mine, which has played a pivotal role in shaping the gem’s prominence in the global market.

A Gemstone with Unique Characteristics

Tanzanite, scientifically known as blue-violet zoisite, is a gemstone that is treasured for its extraordinary and vibrant blue-violet colour. It is incredibly rare and found in only one location worldwide: the Merelani Hills of Tanzania, in East Africa. The gemstone was discovered relatively recently, in 1967, making it one of the newest additions to the world of precious gemstones. Its rarity, combined with its captivating colour, has garnered significant attention from gem enthusiasts and investors alike.

Formation of Tanzanite: A Geological Marvel

Understanding the formation of tanzanite is crucial to appreciating its scarcity. This unique gemstone is created through a geological process that spans millions of years. It all starts with the presence of certain minerals, including calcium, aluminum, and silicate, deep within the Earth’s crust. As these minerals are subjected to extreme heat and pressure, they undergo a transformation, eventually emerging as tanzanite.

Tanzanite owes its mesmerizing blue-violet colour to the presence of vanadium and iron within its crystal lattice. These trace elements impart a unique and striking colour that ranges from a deep blue to a violet hue, depending on the lighting conditions.

The Discovery of Tanzanite

There are two stories of Tanzanite’s discovery that are generally ventured forth. Let’s highlight both of them briefly:

The fascinating history of tanzanite begins in the late 1960s when a local Maasai tribesman named Ali Juuyawatu stumbled upon transparent blue crystals while searching for food in the Merelani Hills. Little did he know that he had uncovered a hidden treasure. These crystals were initially thought to be sapphires, but they were soon identified as a new and distinct gemstone: tanzanite.

The rapid rise of tanzanite in the global gemstone market can be attributed to Tiffany & Co., the renowned American jeweler. In 1968, Tiffany & Co. recognized the gem’s potential and introduced it to the world. The company named it “tanzanite” in honor of its country of origin. This bold move transformed the gemstone into a highly sought-after commodity.

The other story of its discovery revolves around a man named Manuel de Souza, a tailor who was prospecting for sapphires in the Merelani Hills in 1967. However, he did not find sapphires but instead uncovered a new and enchanting gemstone. Souza’s find opened the door to a gemmological treasure trove, and Tanzania quickly became the sole source of this exquisite stone.

Whichever story is true, we let historians decide. What both have in common, is the high degree of serendipity that gifted this beautiful gemstone to the world.

 

TanzaniteOne Mine: The Epicenter of Tanzanite Production

One of the key factors that have shaped tanzanite’s role as an investment gemstone is the TanzaniteOne mine. Situated in the heart of the Merelani Hills, this mine has been the primary source of tanzanite production since the gem’s discovery. The establishment of the TanzaniteOne mine has significantly influenced the gem’s market dynamics and investment potential.

The TanzaniteOne mine has been instrumental in improving the mining techniques and standards for tanzanite extraction. This has resulted in a more consistent supply of high-quality tanzanite in the past, further enhancing its reputation as a valuable gemstone for investors. The mine has also contributed to local employment and economic development, benefiting the region’s communities.

Investment Potential of Tanzanite

Tanzanite’s rarity, combined with its exquisite beauty, has piqued the interest of collectors and investors worldwide. Here are some key reasons why tanzanite is considered an attractive investment option:

 

1. Rarity: Tanzanite is among the scarcest gemstones in the world, and its single-source origin in Tanzania makes it even more unique. With the mine’s finite resources, tanzanite is likely to become even rarer over time, potentially driving up its value.

 

2. Colour and Quality: High-quality tanzanite exhibits a vivid blue-violet colour and exceptional transparency. Gems with such characteristics are highly sought after in the market, making them a valuable investment option.

 

3. Rising Demand: The global demand for tanzanite continues to grow, particularly in emerging markets. As more people recognize its allure and rarity, the demand for this exquisite gem is expected to increase.

 

4. Investment in Jewellery: Tanzanite is frequently used in jewellery, including rings, necklaces, and earrings. Jewellery pieces featuring tanzanite as the central gemstone are sought after by collectors and enthusiasts, adding to its investment appeal.

 

5. Current Supply Outlook: In our latest observations, we noticed that high quality Tanzanite pieces with an attractive size and quality characteristics are harder and harder to find. A trend we noticed to gather strength in recent years.

Further, our latest trip to Tanzania only reinforced this opinion of limited supply in the near future.

6. Change in Marketing. Currently, Tanzanite is simply being sold off via take-off agreements. The gov. of Tanzania proposes to change this dynamic by introducing an auction system, allowing for better price discovery to closer reflect the present supply and demand dynamics of Tanzanite.

 

In summary, it can be said that Tanzanite is a gemstone with a compelling investment story, rooted in its unique geological formation and discovery. The TanzaniteOne mine has played a pivotal role in shaping the gem’s prominence in the global market and enhancing its investment potential. With its breathtaking beauty and rarity, tanzanite continues to captivate collectors and investors, making it a remarkable addition to diversified investment portfolios. However, it’s essential for potential investors to conduct thorough research, seek expert guidance, and consider their investment objectives before delving into the world of tanzanite investments. As with any investment, careful consideration and due diligence are key to maximizing the potential benefits of tanzanite as a valuable addition to a diversified portfolio.