Is Tanzanite A Good Investment in 2022? (With Buying Tips)

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Gemstones are always regarded as a good investment option, and for years, many people have invested in gold and other gemstones because of their increasing value and, for others, the perceived value of the gemstone or mineral. One of these gemstones in tanzanite.

It is a rather rare gemstone, and it fetches a good amount on the market, but would it be a good investment option? Should you invest in tanzanite?

Keep reading to find out all there is to know about the Tanzanite and it’s viability as an investment option. But before we get into the details, let’s start with the basics.

 

What is Tanzanite?

A trade name was first used by Tiffany & Co for the high-quality gem specimens for the mineral called zoisite, which is blue in color. While the company could have chosen to sell the jewelry under its mineralogical name, the blue zoisite, they opted for the name the tanzanite.

This name stimulated customer interests, and it made it easier to market the gemstone. So, why the name tanzanite? Well, the name was derived from the fact that the gemstone was mined from the world’s only known deposit in Northern Tanzania.

Therefore, the name is largely representative of the gem’s limited origin, geographically. The mines are located near the base of Mount Kilimanjaro in Arusha.

So, what is it?

Is Tanzanite A Good Investment

The tanzanite, also known as the mineral zoisite, refers to the beautiful, naturally occurring mineral that’s available in a wide range of colors from yellow and brown to pink, blue, green, violet, gray, and others are colorless.

The name of this mineral, the tanzanite, has been used as the overall name for a number of zoisite minerals/ gemstones, specifically, the ones that range from blue to bluish purple and violet.

Notably, the color variety of the tanzanite isn’t really unusual, especially because the name ‘ruby’ has been used to refer to the red and the slightly purple-red specimens.

The tanzanite’s blue color is said to originate from the small amount of the material called vanadium, which is present in the zoisite structure. Essentially, when the vanadium-bearing zoisite is heated up to a high temperature of up to 600 degrees for 30 minutes, vanadium’s oxidative state and color change.

And this results in the improvement of the gemstone’s blue color.

 

What color of tanzanite is most expensive?

The most expensive variant of the tanzanite is the blue tanzanite; specifically, the blue tanzanite with a strong-to-vivid blue color, as well as the tanzanite’s that come in purplish-blue and the violetish-blue color. These colorful stones are the most valuable pieces.

That said, it’s worth noting that the tanzanite is one of the pleochroic gems, which means that the gemstone’s physical properties will look different at different crystallographic directions.

So, while some of the tanzanite specimens have a nice, distinct blue color viewed in one direction, and it may also look violet or red if you look at it from a different direction. The top, most valuable color of the tanzanite is vivid blue.

Is Tanzanite A Good Investment

Does tanzanite increase in value?

Though beautiful, with some inherent value, the tanzanite, unlike the diamonds and other gems like the Tsavorite, won’t increase in value from the day you purchase the gemstone.

The value of the gemstone won’t increase on a carat basis or as per a carats bracket basis.

Its value is, however, tied to its rarity; specifically, the fine color clarity and its high-quality cutting grade.

 

Is Tanzanite (jewelry) a good investment?

Should you invest in high-quality tanzanite jewelry? Generally, the blue gemstone boasts the best features and a great deal or rarity, which results in its high value.

But if you are looking to invest in tanzanite, here are some of the compelling reasons why you may want to invest in jewelry made of this gemstone.

It’s rare – the tanzanite is one of the rarest gemstones around primarily because it’s only found in one part of the world. The tanzanite’s rare blue makes it a unique piece of jewelry that you may want to invest in.

It’s beautiful, and it’s popular in the Asian markets – Generally, it may be an excellent idea to invest in the tanzanite because of its increasing demand in the Asian markets.

However, you shouldn’t buy tanzanite jewelry if you expect to make much money out of it. Yes, it’s rare, but it’s not going to gain much value over the next few years in the way that the diamonds would.

Why is tanzanite a good investment?

The tanzanite is one of the rarest gemstones on earth, and its rarity is the reason why it makes a great investment.

Regarding its rarity, the tanzanite is only found in one part of the world – Northern Tanzania. It has a mining area in a rather small part of the country, specifically in an area of 6,000 square kilometers.

Besides its rarity, the other reason why the tanzanite is a good investment has to do with the booming markets in Asia, especially with the rapid changes in the third world markets. The Asian market is a big market for the tanzanite, especially with the rapid increase in the middle and upper class interested in buying the best of the fine gemstone. This increase has been there over the years.

Speaking of the popularity of the tanzanite, it’s worth noting that the tanzanite’s popularity is only second to the popularity of the sapphire. And when it comes to colored gemstones, the tanzanite is the number one popular gem in the colored gemstones market. Tanzanite is both addictive and mesmerizing, with the deepest of the tanzanite colors being high in demand across world markets.

What this means is that there isn’t any other investment that would yield as great of a return as the investment in the tanzanite, especially if you invest in tanzanite jewelry of the highest quality.

Like many other industries, the demand and supply for tanzanite are the primary reason for the increase in the value of the commodity.

With the world falling in love with the tanzanite, the loose tanzanite stones are now one of the most desirable kinds of gemstones on the market.

Here is a topic you might love to read: Is tanzanite is more expensive than a diamond?

 

Tips for investing in Tanzanite

If you are going to invest in tanzanite, there are several important considerations and tips that you need to keep in mind. Generally, you need to buy or invest right, which is why you need these tips.

Is Tanzanite A Good Investment

1.Controlling the cost basis

The first thing you need to do is for you to buy right. Make a good margin safety and make sure that you choose the right price. For this, you need to buy the tanzanite from the right sources.

What this means is that you cannot pay the retail price for the gemstone if you expect to sell the gemstone for a profit after some years. For you to buy low, you have to do your homework and find the Tier 1 dealers that mine, cut, and sell the gemstones.

You could also buy from the secondary dealers who buy from the wholesalers. Option 3 involves developing a good network of jewelers wishing to either sell or liquidate the colored gems.

And if you are looking at spinels, make sure that you get a great deal on it and an even better deal on the sapphires.

 

2.Don’t buy from a bad buy.

While the value of gemstones increases depending on the rate of inflations, you should know that a bad deal today will never be a great deal tomorrow.

So, don’t settle for what feels like a bad deal today just because. It’s also important to keep in mind that the value of the gems could rise and then fall again very drastically.

 

3.Find buyers you can sell the gemstones at retail prices.

This is important because these retailers often pay the full wholesale prices for the gems.

Your best buyers include auction houses, jewelry stores, and online auctions. And since you won’t get great retail prices if you are a small business owner, you may want to start making connections with different potential buyers.

That said, you might want to improve your sales skills to invest in the gems; just make sure you don’t go against the rules.

 

5.Consider Markup before buying gemstones.

For high markups, you need to buy the lower-priced gems. But keep in mind that the gemstone markups would decline for most of the popular and expensive gems.

 

6.Value Addition

To improve the value and the profit potential of your gemstones, consider recutting and then repairing the gemstones to improve their profitability.

You’d also want to polish, market, and set the gemstones in a way that makes them more appealing to your target market.

 

Conclusion

If you are thinking of buying tanzanite gemstones, this article shares everything you need to know about the gemstone. With its rarity and the increase in the value of the gemstones with time, investing in the vivid blue rare tanzanite gemstones might be a great idea for you.  

For more useful tips, please read here or here. Thanks for reading!

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