Tanzanite History and Information

If you ask any colored gemstone connoisseur, they will tell you that tanzanite is becoming the most desired gem in the United States. We also see this trend manifesting itself in Europe. American and European designers, collectors and tanzanite jewelry manufacturers are keenly aware that with only one relatively tiny and unique geological source in Tanzania, tanzanite pricing fluctuations have sometimes been extreme and tend to move with the current news and season of the year. In fact, wholesale tanzanite prices have more than doubled since early 2004, with regular price increases being passed to retailers on an ongoing basis.

It is tanzanite’s color and relative scarcity which has caused these dramatic price fluctuations. We all remember the days when one could purchase a very deeply colored tanzanite for around $300 per carat. There were even smaller tanzanites in the 1 to 2 carat range that had rich color. Just try finding one of these today! These tanzanites were mined mostly in the D shaft of Merelani Hill, just outside of Arusha, Tanzania. This area has since been depleted and new shafts have been opened. The color being produced by these new shafts is not quite what Block D produced. This notwithstanding, much richly-colored tanzanite is still being produced and is available.

With the current supply of tanzanite being ‘controlled,” essentially, by TanzaniteOne Ltd., prices are expected to continue to increase over time, though at a more stable rate than in years past due, in large part, to a sightholder distribution network comprised, at present, of 5 sightholders. In fact, many projections indicate that some day tanzanite could be the most expensive gemstone on earth. So, the opportunity exists today to purchase tanzanite relatively inexpensively, even at $600 to $700 per carat, when compared to the prices of fine rubies, sapphires and alexandrites which sometimes sell into the $1000’s per carat.

For local tanzanite miners, when it comes to tanzanite, the process of obtaining any type of permit to mine can be expected to be met with a great deal of resistence. One only needs to look at the history of Afgem (Johannesburg) to determine this. Before TanzaniteOne Ltd. purchased all of Afgem’s interests, there existed a great deal of turmoil between the local miners and commercial tanzanite mining operations.

As of 2005, all tanzanites sold in the USA are sold under “The 2002 Tucson Protocol” which essentially states that the contents of shipped/invoiced tanzanite parcels have been mined in Tanzania and have been traded through legitimate sources. The seller warrants that the proceeds from the sale of tanzanite are/were used for legitimate purposes. The seller affixes the tanzanite warranty sticker to all tanzanite they sell.