Tanzanite has earned a reputation as one of the rarest and most coveted gemstones in the world. But is tanzanite truly as rare as it seems? In this article, we’ll take an in-depth look at the rarity, value, and uniqueness of tanzanite.
What is Tanzanite?
Tanzanite is the blue and violet variety of the mineral zoisite. It was first discovered in the 1960s near Arusha, Tanzania and was named after its country of origin. Tanzanite is noted for its remarkably strong trichroism, meaning it appears alternately sapphire blue, violet, and burgundy depending on crystal orientation.
Tanzanite rates 6.5 to 7 on the Mohs hardness scale, making it suitable for use in jewelry. It has a refractive index of 1.69 to 1.70 and a specific gravity ranging from 3.35 to 3.38. While tanzanite occurs in a wide range of hues, a strong violetish-blue is considered the most valuable.
How Rare is Tanzanite?
Tanzanite is only found in one small area near the Mererani Hills in northern Tanzania, within an area approximately 7 km long and 2 km wide. This extremely localized occurrence contributes to tanzanite’s rarity.
The unique geological conditions needed to form tanzanite are only found in this remote part of the world. Tanzanite forms when the mineral zoisite undergoes natural heating events, causing it to change composition and assume its characteristic blue color. The heat required for this transformation is supplied by the intrusion of hot, underground magma into the surrounding zoisite-bearing rocks. This occurred around 25 million years ago as the Great Rift Valley in East Africa was forming.
The only major deposit of tanzanite sits adjacent to the dormant volcano Mount Kilimanjaro. Tanzanite crystals weather out of subterranean lava flows cooled by surrounding metamorphic rocks. This unusual set of geologic circumstances came together in just one small place, limiting tanzanite formation to the Mererani Hills.
Additionally, within this small area, only a handful of mines have yielded significant tanzanite deposits. Important localities include the AFG mine, the B block mine, the D block mine, and the Merelani mining center. As existing deposits become exhausted, new mining opportunities are scarce.
Geologists estimate that only a few thousand tons of tanzanite may exist worldwide, and the major deposits could be depleted within just a couple decades. No significant new finds have emerged for several years. For this reason, tanzanite is described by many experts as a thousand times rarer than diamond.
Limited Supply
Tanzanite has only been commercially mined since the late 1960s. Over 50 years of mining has exhausted a significant portion of identified deposits. Large scale mining only occurs in a few small sectors of the Mererani mining block.
Initially, the Tanzanian government nationalized tanzanite mining. However, the Tanzanian Mining Act of 2010 opened the industry to private investors. Nonetheless, active tanzanite mining remains centered around just a handful of major companies:
- TanzaniteOne Mining Ltd
- Kilimanjaro Mining Company
- D Dawda Mining and Manufacturing
- Maasai Green Mining Company
- Malisa and Merali Mines Ltd
The amount of tanzanite produced each year strongly depends on the operations of a few key players in this relatively small, concentrated market. Global production has fluctuated widely from as little as 200,000 carats in 2003 to over 2 million carats in 2011. Annual supply hovers around 500,000 to 1 million carats in most years.
While technological improvements have increased the efficiency and output of tanzanite mining, overall reserves continue to dwindle. The finite supply from Tanzania’s small mining block ensures tanzanite will only become more scarce. Experts project commercial deposits could be exhausted within the next 25 years.
Difficult to Source Rough Material
Another factor that limits the supply of tanzanite is that rough stones are hard to source outside the main mining area in Tanzania. Government policies restrict the export of raw tanzanite crystals, encouraging local manufacturing. Most tanzanite is cut locally in Tanzania before entering the global market.
This local processing requirement makes it extremely difficult to obtain rough tanzanite. The limited availability of rough drives up costs since the material cannot be easily accessed at source. Most dealers must rely on parcels of pre-cut tanzanite from Tanzanian cutters.
Illegal smuggling of raw tanzanite still occurs, but carries significant risks. Security around the mines has increased in recent years, making unauthorized access challenging. The presence of the Tanzanian military and private security firms deter smuggling activity.
Sourcing cut tanzanite directly from Tanzania also has become more challenging. In 2017, Tanzania’s president ordered the seizure of a tanzanite mining concession from a private company after claims they discovered the illegal smuggling of undeclared stones. The government cited concerns over lost tax revenue and foreign exchange earnings.
Situations like this demonstrate the tight control maintained over the tanzanite supply chain in Tanzania. This limits export opportunities for miners, dealers, and custom cutters worldwide.
Unstable Mining Area
Another issue complicating tanzanite mining and supply is that the Mererani mining region suffers from tumultuous conditions. The area sees high rates of poverty and illegal artisanal mining by unlicensed locals is common.
Major mining companies contend with trespassing and theft on their concessions by illegal miners. Sometimes hundreds of illegal miners will storm a site in search of schedules tanzanite crystals. Clashes over access with security forces often become violent, resulting in injuries and even fatalities.
In 2019, a mudslide triggered by unregulated mining killed at least 45 people near the tanzanite mines. These precarious conditions periodically force mine closures and suspensions in operations.
The presence of artisanal miners also disrupts and slows down production. The large mining companies bear the costs of increased security and risk to their workers. The criminal elements surrounding tanzanite mining pose a challenge to maintaining orderly extraction.
Furthermore, Mererani’s small undeveloped mining towns lack infrastructure like electricity and water access. Operations rely heavily on diesel power and expensive imports. Logistics costs are high for operating in such a remote area.
Limited healthcare, education, and community support increase expenses for attracting skilled workers. Declining production as deposits downgrade further strain the profitability of mining companies. All these issues make consistent tanzanite mining production difficult.
Unique Gemstone Properties
While geological circumstances limit tanzanite’s availability, its stunning visual properties also contribute to its prized status. The trichroic colors, transparency, and scintillation make it unmatched by other blue gemstones.
Tanzanite exhibits a striking range of blue and violet hues. Stones displaying intense violetish-blue and blueish-violet shades are most valued. The trichroic colors change dramatically in different lighting directions.
Well cut tanzanite has a high degree of transparency and clarity. With a brilliance comparable to diamonds, tanzanite displays exceptional fire and sparkle.
From purple to indigo to cobalt blue, tanzanite covers all shades of blue more comprehensively than any other gem. Sapphire comes closest, but does not exhibit the same richness of violets as fine tanzanite.
Tanzanite also comes in larger sizes than most other blue gems. While sapphire or topaz bigger than 5 carats are rare, tanzanite is commonly cut into stones over 10 carats. Pieces exceeding 20 carats can be found. This allows for impressive cuts that show off tanzanite’s variegated hues.
No other blue gemstone quite compares with tanzanite for its trichroic properties and rare colors. Even synthetic blue substitutes cannot accurately replicate its distinctive look. Tanzanite’s one-of-a-kind appearance adds to its preciousness.
Value and Price
Given its finite supply and outstanding visual qualities, tanzanite commands high prices relative to other colored stones. Prices fluctuate widely depending on color, clarity, cut, and carat weight.
On average, one carat of tanzanite costs around $300 to $600. However, exceptional stones can fetch over $1,000 per carat. The highest grades approach the cost of diamonds, selling for up to $2,000 per carat at retail.
Tanzanite pricing trends upward as supplies dwindle. In the early 2000s, tanzanite sold for $250 per carat on average. Values doubled over the next decade. As mining output declines further in coming years, tanzanite prices are projected to continue rising. Some market analysts predict tanzanite could appreciate 500% or more in value over the next 10-15 years.
Here are some examples of typical tanzanite pricing in 2022:
| Carat Weight | Price Range |
|---|---|
| 0.5 carat | $150 – $300 |
| 1 carat | $300 – $600 |
| 2 carats | $600 – $1200 |
| 3 carats | $900 – $1800 |
| 5 carats | $1500 – $3000 |
These represent retail prices for calibrated round faceted cuts with medium blue-violet hue. Custom designer tanzanite jewelry costs substantially more, with finished pieces selling for 10x the stone’s base per carat price or higher.
Tanzanite has gained value rapidly since its discovery. In the late 1960s, the initial find sold for just $20 per carat. By the 1990s, prices reached $200 per carat before jumping sharply over the past 20 years. Continued scarcity ensures tanzanite will keep appreciating.
Investment Potential
The soaring value and constrained supply make tanzanite an intriguing investment gemstone. As both a rare collectible and retail jewelry product, tanzanite offers portfolio diversification for investors.
Key advantages of investing in tanzanite include:
- Scarcity – Limited global deposits unable to meet demand
- Production declines – Lower mining output reducing market supply
- Unique properties – Distinctive trichroic color unmatched by other gems
- Growing rarity premium – Prices amplifying as availability decreases
- High value-to-density ratio – Concentrated worth easy to store
Tanzanite has delivered high price appreciation historically and makes an intriguing contrarian play versus mainstream assets. As an alternatice investment, tanzanite diversifies risk since its value does not closely track most other equity/debt markets.
However, tanzanite investing also comes with risks. Liquidity can be low for rare collectible gems. Price volatility is high and retail jewelers’ profit margins must be accounted for. Assessments of gem quality can be subjective. Provenance and certification are critical due diligence measures.
Overall, purchasing high quality tanzanite gems and jewelry can offer portfolio diversification and substantial potential upside. But extensive research into sourcing and pricing is essential for long-term strategic investors.
Popularity for Jewelry
Beyond investing, tanzanite is also coveted worldwide as an exclusive jewelry gemstone. Its vivid colors, strong brilliance, and large available sizes make tanzanite a glamorous choice for fine jewelry.
Tiffany & Co. named tanzanite as one of its signature gems after being introduced to the stone by the Tanzanian government in 1968. Renowned jewelers like Bulgari, Cartier, and Harry Winston quickly added tanzanite designs.
Tanzanite continues to be the definitive blue gem of the luxury jewelry industry. Its prestige and brand recognition contribute to high demand. Wealthy clients value tanzanite jewelry as a status symbol.
Large tanzanite gems allow jaw-dropping jewelry pieces. Record setting tanzanite includes the “Tanzanite Necklace” by Michael Scott containing a 52 carat pear brilliant and the “Tanzanite Heart” necklace featuring a 30 carat heart-shaped trilliant tanzanite.
For collectors, tanzanite stands out as especially alluring. The limited window to buy newly mined material fuels interest from connoisseurs. Museums like the Smithsonian hold tanzanite among their most important gem collections.
Tanzanite’s bold blue tones complement both warm and cool skin undertones, appealing to a wide demographic. Its special properties match perfectly with platinum, white gold, and yellow gold settings.
Overall, tanzanite jewelry enjoys luxury status due to its uniqueness and prestige. Top designers eagerly utilize tanzanite as a featured stone.
Synthetic Tanzanite
Synthetic lab-grown tanzanite entered the market in the early 2000s as a simulated alternative to natural tanzanite. Produced mainly in Russia, China, Thailand and India, manmade tanzanite is more affordable and widely available.
However, synthetic tanzanite differs notably from genuine material. Lab tanzanite exhibits less vibrant blue-violet hues, weaker dichroism, and more visible inclusions. Cutting precision is also lower. While costs are lower, appearance is also not on par.
No significant new tanzanite deposits have been unveiled in over a decade. So supply relies on existing mining operations. As the source material is finite, prices for natural tanzanite will likely appreciate faster than manufactured substitutes.
For jewelry purposes, synthetic tanzanite provides an accessible option. But for collectors and investors focused on rarity, authentic tanzanite remains the premier choice.
The introduction of manufactured tanzanite has not dampened interest in natural tanzanite. If anything, it has drawn more attention to the scarcity of the real material. This fuels market enthusiasm to acquire high quality tanzanite from the limited virgin supply.
Conclusion
Tanzanite remains one of the world’s most scarce and coveted gemstones. The unique geological conditions that formed tanzanite limit its supply to just one small mining area in Tanzania. Active mines are projected to be depleted within just a couple decades.
No other blue gemstone exhibits the same range of violet and blue shades due to tanzanite’s distinctive trichroism. This singular appearance combines with major rarity to make tanzanite one of the most precious colored stones on Earth.
Tanzanite prices have already appreciated exponentially since its discovery just 50 years ago. As availability declines further in coming years, values are likely to soar even higher. With limited supply and rising demand, tanzanite exhibits powerful investment upside.
In summary, tanzanite’s short window of commercial mining and tiny global supply has earned it a deserved reputation as a remarkably rare jewel. There is nothing else quite like tanzanite in the world of colored gemstones.
