Tanzanite Prices, Where Will They Go From Here?

Tanzanite Pricing
Tanzanite is becoming increasingly difficult to find in the better grades and colors. Most of the material presently coming out of the ground is of much lower quality than what has been available for a fair price in the past. Suppliers have been pressed from all of their vendors to continue to maintain a firm line on price, yet continue to provide good color. Something had to give and that something was price.
As a result, tanzanite prices are expected to continue their upward trend in 2006 through the holiday season. 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, I recommend that you deal only with a tanzanite seller who has an unconditional return policy on their tanzanite. A word of caution...many sellers routinely spike the color in their images to obtain a higher initial price. Not only is this a fraudulent sales practice, these sellers are producing hoards of dissatisfied customers in the process.
Where will tanzanite prices go? Many people are asking this question a lot! The first part of the answer to this question can be found by looking at the short-term price projection. Let's consider a 24 month time-frame. The answer is very much the same within the industry: It is expected that tanzanite pricing will be commensurate with the decisions of TanzaniteOne Ltd., combined with the law of supply and demand. It is a given, at least for the present time, 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. Many of the finer jewelry chains are stock-piling tanzanite with the expectation that prices are going to increase to substantially higher levels. And if this isn't enough, many sources indicate that in 2005 in Tuscon, the mine owners showed up and quite literally bought back everything they could get their hands on. This buyback was their first step in controlling tanzanite pricing going forward.
In summary, the tanzanite market has changed substantially since 2004. If you are in the market to add any loose tanzanite or tanzanite jewelry to your collection, it is recommended that you do so immediately so as to have the best chance at obtaining this important gemstone at a value price, even at $600+ per carat.