With its intense color and single-source exclusivity, Tanzanite has become a point of interest not just for jewelry enthusiasts but also for those exploring gemstone investments.
However, like any investment, it’s crucial to consider market factors, potential risks, and how Tanzanite’s value has evolved. Below, we break down the key points to help you decide if Tanzanite has a place in your portfolio.
LIMITED SUPPLY, HIGH DEMAND
Tanzanite’s primary draw is that it originates from a very small region in Tanzania. Many gem experts speculate that the mines may face depletion in the coming decades. This scarcity narrative often supports higher prices, especially for larger or more vividly colored stones. If demand continues to rise while supply remains limited, prices could trend upward.
COLOR AND QUALITY PREMIUMS
Not all Tanzanite is created equal. Top-grade stones, often exhibiting a deep “velvety” blue with flashes of violet are significantly rarer than lighter or less saturated stones. Such premium pieces can command impressive prices and hold their value more robustly.
At The Bilal, we see consistent interest in these higher-grade stones among both collectors and investors.
HISTORICAL PRICE PERFORMANCE
Tanzanite saw notable spikes in market value after Tiffany & Co. introduced it to the mainstream in the late 1960s.
While there have been fluctuations, it often tied to global economic conditions or shifts in consumer demand and the overall long-term trend has been positive, particularly for high-quality pieces. However, gemstones do not behave exactly like stocks or real estate, the market can be more niche and less transparent.
RARITY VS LIQUIDITY
One challenge with gemstone investments is liquidity, how easily you can sell them when you want to. Tanzanite, while rare, may have fewer dedicated marketplaces than more universally traded precious stones like diamonds or rubies.
Consequently, securing a buyer who appreciate Tanzanite’s value might take more effort. Working with reputable dealers or auction houses can streamline this process.
CERTIFICATION AND PROVENANCE
Before investing in Tanzanite, insist on reputable gemological certificates (e.g., from GIA).
Documentation that confirms the stone’s authenticity, origin, and any treatments can boost resale value. Provenance or a well-documented supply chain also adds credibility, particularly important in an age where ethical sourcing matters to many buyers.
DIVERSIFYING YOUR PORTFOLIO
As with any investment, diversifying is crucial. If you already have a balanced portfolio of stocks, bonds, and real estate, adding a few high-grade Tanzanite pieces could be an alternative asset with potential for appreciation.
However, it’s wise not to rely solely on gemstones as a primary investment, given the market’s specialist nature.
The Bilal’s Perspective
At The Bilal, we often advise clients to buy what they love first and foremost. If you adore Tanzanite’s unique hue and rarity, owning it can be personally rewarding, regardless of market fluctuations.
For serious investors, we provide guidance on selecting top-tier stones more likely to retain or increase in value. Whether it’s a single statement piece or a curated set, we can connect you with options that align with your goals.
Tanzanite’s single-source rarity, remarkable color, and growing global awareness can make it an intriguing investment. Yet, as with all alternative assets, potential gains come with risks, including market volatility and liquidity challenges. If you decide to invest, focus on high-quality, certified stones and work with reputable gemologists or jewelers.
At The Bilal, we’re here to help you navigate these considerations, so you can make an informed decision that fits both your aesthetic desires and financial objective.
After weighing Tanzanite’s investment potential and exploring how it could fit into your portfolio, it’s essential to understand how to properly maintain and protect your gemstone. In our next post “How to Care for Your Tanzanite: A Simple Guide” we’ll show you the best ways to keep your Tanzanite looking radiant for years to come.