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How to Invest in Tanzanite

by Steve Moriarty April 21, 2023

Video Transcription

Hi, I'm Steve Moriarty from moregems.com and tanzanitejewelrydesigns.com. Today we're going to discuss investing in tanzanite. What we're going to discuss is why tanzanite, the long-term and the short-term possibilities for investment, sizes to buy, shapes to buy, and just how to resell once you've decided to sell your tanzanite.

Why buy tanzanite as an investment? To me, first and foremost, is just the sheer beauty of this gem. Discovered in 1967, this is a totally unique gem that displays both blue and purple. It can look like a sapphire. It can even look like an amethyst, but most often it's just a beautiful mix of blue and purple, two very desirable colors in a gemstone.

Let me show you a couple of the crystals we have. These are natural crystals, as they were mined.

These are the natural crystals. This one actually is totally natural. It has never been heated. These two have been heated. And why do we heat them? We're taking out a yellow color. Tanzanite has blue, purple, and yellow in it. And when that yellow is distracted, we heat it, it disappears and just leaves the blue and the purple.

These are very large crystals. This one is actually a facet grade gem. You can see the purple in that direction, whether you can see the blue or not, in this direction. This is a big crystal. A couple of hundred carats. Here's some specimens. Specimen because they're not really facet-able, or they're worth more as a specimen than they are as a faceted gem because this one has a tip on it that does have a fairly big gem in it, and can be cut and is probably worth as much as the crystal itself. Also true of this stone. Just beautiful colors.

The other reason we would consider investing in tanzanite is its rarity. Tanzanite is considered by many to be a thousand times rarer than diamonds, and it's only found in one place on the planet in Tanzania. It's a 12 square kilometer mining area. And for tanzanite, that's it. Once that's gone, there is no more to be had.

First, we'll look at the long-term potential for tanzanite. Long term we're looking at 10, 15 years. Many people have talked for many years that tanzanite will be going out of existence in 25 years, and that started 40 years ago. These mines are down as far as 3000 and more feet into the ground. So not only the difficulty of mining, the possibility that it's just going to end one day, which it will, and that's what we're looking for in our long-term investment strategy.

In regards to the short-term investment in Tanzania, this has a lot to do with activities of the Tanzanian government. They've built a wall completely around the tanzanite mines. This is an attempt to stop the smuggling of tanzanite across the border into Kenya and exports from there, thereby avoiding taxes and dealing with the Tanzanian government. They've also set up Borsas. These are government run offices where all gem trade is supposed to take place.

The other thing they're doing is trying to sell off parcels of the tanzanite mining to a larger company. Previously block C, which there's A, B, C and D block in the tanzanite mining. And they all produce great stones. When people get into this D block thing about being the best, but all blocks produce beautiful tanzanite. Tanzanite One used to own C block, and I believe that's what block that the Tanzanite government is trying to sell off. All these things can have an effect on the future of tanzanite prices.

Now let's get into just what to buy in Tanzanite. Many people want to buy the big 77 carat stone, but I generally recommend that you buy smaller stones. Nothing wrong with the 77 carat stone. If this material goes out of existence, there'll be a customer for that big stone, even though it costs a quarter million dollars. But it's much easier to sell smaller gems. If you're concerned about a quick turnover when you need to, investing in smaller stones is probably a wiser way about it.

The top stone would probably be a three carat stone if they actually were available regularly in top quality. It's just very hard to get smaller stones in high quality. So I generally recommend the 5 to 15 carat stones. This is where you can get the finest of gems and regularly. This is a size range that's more available and it gets big enough that it displays the deep vivid colors that you're looking for in tanzanite.

In my past in business, tanzanite has wholesaled for as much as 3,000 a carat. So the future potential is that and greater. It could be 5,000 a carat once it goes out of existence at the mines. It's potential. And that's where we get this stone to be a quarter million dollars. And even this three carat stone that's pushing close to $10,000, when you're three to $4,000 a carat.

Next, I'll discuss the shape and the cut and our quality rating of these gems.

Here's some of the shapes that are available and sizes. We range from a three carat oval. This is priced seven or eight carats. This one goes up to 12 carat. This is emerald cut. Antique; this is square cushion. Round, of course. A square brilliant cut, and this would be a trillion cut.

The quality is more important. Most saleable are probably ovals and rounds is probably more what we sell, but that has somewhat to do with what's available. There's more of those available. All of these stones in high quality are worthy of investment. And when we do quality, we use a grading system that's a one to 1000. It involves cut, the clarity and the color of the gem. And if you take that grading system and you look for those stones that are 950 and above, those are going to weed out shallow cuts, low clarity, lesser colors, and you're going to know that you have a gemstone worthy of investment.

In the future, when it comes to resale, we give you the tools that you need. Those are the pictures and fine videos that we offer on YouTube, and these will help you sell on social media or wherever you decide to sell your gems. You might want to consider a GIA report, which gives credibility. We don't do it because the amount of time it takes and the little information it really gives you. But for you, the credibility of a GIA report could be important.

Right now Tanzania quality is the best I've seen it in 45 years. We buy at the mines, buy direct from cutters. We also cut our own gemstones. So we offer you the finest quality available. And like I said, the quality now is better than it's ever been.

If you're interested in investment in tanzanite, go to tanzanitejewelrydesigns.com or give us a call and we can discuss your needs in tanzanite investments.

We'd love to hear your thoughts on tanzanite investments, so leave your comments below. Please like and subscribe if you want to see more educational videos on gems and jewelry.

I'm Steve Moriarty from moregems.com and tanzanitejewelrydesigns.com.

Steve Moriarty
Steve Moriarty

Steve Moriarty has been in the jewelry industry for over 30 years. Steve is not only a jeweler, but a gem cutter and designer. He has traveled the world in search of gemstone rough and has owned a retail jewelry store for 20 years located in Crown Point, Indiana.

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