Tanzanite is becoming increasingly difficult to find in the better grades and colors. As a result tanzanite pricing continues to rise. Most of the material presently coming out of the ground is of much lower quality than what we have seen in the past. Our suppliers have been pressed from all of their vendors to continue to maintain a firm line on tanzanite price, yet continue to provide good color. Something 'gave' and the something was price.
As a result, we expect tanzanite prices to continue their upward trend in 2008 through the holiday season and into 2009. As of today, AAA color in the 3 to 5 carat sizes are being offered in the $600 to $700 per carat. For those of you considering a tanzanite purchase, we recommend that you deal only with a tanzanite seller who has an unconditional return policy on their tanzanite (like us!). We offer a 3 day return policy from the day you receive your order to give you ample time to have your jeweler or gemologist review your stone. Many sellers routinely "spike" the color in their images to obtain a higher initial price. Not only is this a fraudulent sales practice, they are producing hoards of dissatisfied customers in the process. In fact, many have become clients of ours.
Many of you have asked in the past where we think tanzanite prices will be in the next few years. Our answer has always been the same: We expect tanzanite pricing to be commensurate with the decisions of TanzaniteOne Ltd., combined with the law of supply and demand. We do think that there will be enough tanzanite to go around, but it is truly anyone's guess as to how distribution channels will be controlled and how tanzanite will be marketed. Currently, TanzaniteOne Ltd. is considering adding additional sightholders to their list, but this will probably only happen if their current list of sightholders cannot handle the volume of tanzanite currently being mined. There were 3 "sights" held last year and according to company officials, the sights were a success, so there may be some lag before we see any more new distributors added. There just isn't "too much" tanzanite available in the market for sale. This is a major contributor to tanzanite prices at present.
Many of the finer jewelry chains are stock-piling tanzanite with the expectation that tanzanite prices are going substantially higher. And if this wasn't enough, our sources indicate that this past year in Tuscon (2008), premium tanzanite prices were being commanded on the finer goods. We are of the particular position that tanzanite pricing will continue to rise as more control of the tanzanite market is realized (good and bad).
Please share with us any additional information you have related to local tanzanite prices. We are always happy to hear from you.