Why Is Tanzanite So Cheap Now?
Why Is Tanzanite So Cheap Now? You’re about to explore the intriguing reasons behind the current affordability of Tanzanite. As a lover of precious gemstones, you’ve probably noticed this sparkling blue-violet stone’s significantly lower price tag recently. Prepare yourself for a fascinating journey that unravels the mysteries behind the price drop of this once highly-prized gemstone, Tanzanite, revealing how market forces and discover factors have contributed to its accessibility today. Be prepared to gain deeper knowledge and insights that will change the way you view this captivating gemstone.
Understanding Tanzanite
Definition of Tanzanite
Tanzanite is a rare, vibrant blue gemstone that is found only in the Mererani Hills of Tanzania, Africa. Considered as one of the most precious gemstones globally, tanzanite is a thousand times rarer than diamond. It is so unique that it is celebrated as one of December’s birthstones beside zircon and turquoise.
Characteristics of Tanzanite
Tanzanite is adored for its strong trichroism property, meaning it oscillates between three different colors i.e., blue, violet, and burgundy, when it is viewed from numerous angles. On the Mohs scale, tanzanite ranks at 6 to 7 which makes it relatively less hard than other gemstones like sapphires or diamonds. This being a factor, the gemstone requires careful handling.
Historical background of Tanzanite
Tanzanite was discovered as recent as 1967 by the Masai tribesmen in a region of northern Tanzania, near Mount Kilimanjaro. It was Tiffany & Co, the renowned American gem and jewelry company that named the stone ‘Tanzanite’, as a reflection of its place of origin, and began its global marketing in 1968.
Tanzanite Mining Process
Where is Tanzanite found
Tanzanite mining is highly localized, with all globally available Tanzanite coming from a single location – the Mererani Hills of Tanzania, spanning only around 20 square miles.
How Tanzanite is Mined
Tanzanite mining involves both an open-pit and an underground block caving process. Mining is a labor-intensive process where miners dig deep into the earth using hand tools. After extracting, the rough tanzanite is heat-treated to about 500 degrees Celsius to enhance its desirable blue color.
Challenges in Tanzanite Mining
Tanzanite mining carries many challenges including poor working conditions, illegal mining and smuggling, and conflicts between large-scale mining companies and artisanal miners. The rare mineral’s limited availability makes it vulnerable to over-mining and it’s also at risk due to controversial mining practices.
Tanzanite Market Overview
Tanzanite Market Size
The tanzanite market size, while modest compared to established gemstones like diamond, is still significant due to its rarity. However, due to factors like decreased demand and increased production, the value of tanzanite has been on a decline.
Demand and Supply dynamics
Despite its uniqueness, the demand for tanzanite isn’t as robust as other gemstones, largely due to its late discovery and limited geographical sourcing. The supply is abundant given the focused efforts in mining, but weak demand dynamics have resulted in lower prices.
Key markets for Tanzanite
Key markets for Tanzanite include the United States, Europe, and Asia. However, due to its vulnerable supply chain and the niche nature of the gemstone business, the tanzanite market can be volatile and unpredictable.
Factors Affecting Tanzanite Prices
How the gemstone market works
The gemstone market works on the basis of demand and supply. If a gemstone is rare, and the demand is high, the prices escalate. However, if the demand drops or if there is an influx of supply, that can drive prices down.
Role of Tanzanite in the Gemstone Market
In the gemstone market, tanzanite holds a unique spot due to its rarity, stunning color, and exclusivity. However, its late discovery, coupled with limited geographical sourcing and relatively less hardness compared to diamonds and sapphires, have made it less popular than other gemstones.
Understanding factors affecting Tanzanite value
Many factors affect Tanzanite’s value. The four key factors are its color, clarity, cut, and carat weight. In addition, geopolitical issues, mining costs, and overall demand also have an impact. Notably, like other gemstones, synthetic substitutes have also influenced values.
Reason Behind Low Tanzanite Prices
Decreased Demand for Tanzanite
Tanzanite prices have seen a significant drop due to decreased demand. This can be attributed to factors like a lack of awareness about the gemstone, competition from other gemstones, and the rise of synthetic substitutes.
Increased mining and production
Increased mining in the Mererani Hills, stemming from enhanced modern mining techniques, has led to an amplified supply, which further compounds the issues of decreased demand, contributing to the reduction in the price of Tanzanite. How Rare Is Tanzanite?
Impact of synthetic substitutes
The rise of synthetic substitutes has also played a significant role in the reduction of tanzanite prices. The availability of high-quality, lab-made gemstones at lower prices poses a formidable challenge to the tanzanite market.
Role of Tanzanian Government in Tanzanite Pricing
Government Regulations
The Tanzanian government has implemented regulations aimed at protecting the tanzanite industry and ensuring its benefits trickle down to the local communities.
Impact of the 2017 Tanzanite Mining laws
In 2017, the Tanzanian government implemented strict mining laws which were intended to safeguard its resources and maintain control over the tanzanite industry. These laws, while potentially protective in the long run, have added an extra layer of uncertainty to the already volatile tanzanite market.
Government Control and Impact on Tanzanite price
Government control, through regulations and laws, impacts the tanzanite price by influencing production and export. The Tanzanian government’s active intervention has considerably affected the price dynamics.
Implication of Cheap Tanzanite
Implications for the Jewelry Market
For the jewelry market, the falling prices of Tanzanite could be both an opportunity and a challenge. While lower prices could spur demand, they could also potentially diminish the allure of the gemstone.
Future Predictions for Tanzanite
The specific circumstances of Tanzanite—its single-source origin, limited supply, and distinctive traits—could result in its price rebounding in the future if demand trends improve. Some forecasts predict a surge in its popularity and price due to its finite source. https://gem-a.com/
Impact on Tanzanian Economy
Tanzanite plays a pivotal role in the Tanzanian economy. The downturn in prices has negatively impacted the economic development of this region, which depends heavily on the mining of this precious gemstone.
The Shift to Other Gemstones
Growing popularity of other precious gemstones
The attractiveness of other gemstones, especially diamonds, sapphires, and emeralds, have proven to be a hurdle for tanzanite. These gemstones, owing to their hardness and widespread recognition, have a broader appeal for consumers.
Emergence of synthetic gemstones
In recent years, the emergence of synthetic gemstones has altered the dynamics of the gemstone market. With their comparable optical properties and significantly lower prices, synthetic gemstones pose a strong competition to tanzanite.
Impact on the Tanzanite Market
These shifts in the market have further driven down the value of tanzanite. For tanzanite to regain its lost appeal, it would need to be marketed innovatively, accentuating its uniqueness and rarity.
Tanzanite Vs Other Gemstones
Comparison with Diamonds
Diamonds are the hardest gemstones, which makes them more durable than tanzanite. While tanzanite is much rarer than diamonds, diamonds traditionally hold a more prestigious and recognized position in the consumer market due to their long-standing establishment in the market.
Comparison with Sapphires
Tanzanite and sapphires share a similar blue hue, however, sapphires are harder and more durable. Like diamonds, the popularity of sapphires further overshadows the demand for tanzanite.
Comparison with Emeralds
Comparatively, emeralds are less hard than tanzanites, but their rich green color and historical familiarity make them more sought after in the market.
Future of Tanzanite
Possible scenarios for Tanzanite
Given its limited source, and growing demand in emerging markets, there might be a price increase in future. There’s also a risk, due to its single mining location, that it could become extinct, creating a scarcity that could fuel demand.
Potential for Tanzanite resurgence
A worldwide marketing push, emphasizing on the rarity and unique beauty of tanzanite, could potentially fuel its resurgence in demand. Improved mining practices and government policies could also impact its market favorably.
Tanzanite and Sustainable practices
Sustainable mining practices can help elevate the perception and value of Tanzanite. Emulating fair-trade practices, improving miners’ working conditions, and driving awareness about its unique qualities could enhance its appeal and future prospects.
