Vibrant opportunities in Tanzanite

Tanzanite is enjoying stable demand while steadily earning broader recognition among more discerning buyers. This blue-violet gem is now firmly asserting its place in the contemporary colour palette within the gemstone world.

Discovered in Tanzania in the late 1960s and still sourced from a single mining area in Tanzania’s Merelani Hills near Mount Kilimanjaro, tanzanite is prized for its pleochroic hues that shift between blue and violet under various lighting.

“Tanzanite stands out for its vivid colour, which is unlike anything else in the gemstone world,” said Ashish Dangayach, managing director of Color Jewels. “Rarity also adds a level of intrigue to the stone. It appeals to buyers looking for jewellery that is meaningful, beautiful and different from mainstream stones."

A sightholder of TanzaniteOne, Color Jewels counts the US and select parts of Europe as primary tanzanite markets. Demand for tanzanite has since rebounded in these regions following the Covid-19 slowdown while sales in emerging markets like India are picking up.

“The market is showing confidence in tanzanite again,” Dangayach observed, citing a steady growth in orders from existing and new retail partners looking to expand their coloured gemstone offerings.

Fuelling this recovery are increased interest in unique, ethically sourced gems alongside tighter mining regulations in Tanzania, which helped stabilise supply.

Hemant Phophaliya, owner of AG Color Inc – another TanzaniteOne sightholder – also acknowledged tanzanite’s growing global appeal, especially in dynamic markets like India beyond the stone’s traditional strongholds in the US and Europe.

“With a drastic fall in diamond prices, customers are shifting to the coloured gemstone sector where prices of fine goods continue to appreciate,” noted Phophaliya.

Sweet spot

Dangayach cited a modest increase in tanzanite prices in 2024, which is in line with steady demand and constrained supply rather than sharp speculation. He said fine-quality tanzanite of over 10 carats can command US$1,500 per carat or more, depending on colour and clarity, while lower-grade stones can sell for US$100 to US$300 per carat.

“The 2- to 5-carat range in AA (high quality) and AAA (top-tier) grades is currently a strong spot. These stones offer a balance between visual impact and price accessibility, making them popular among collectors and first-time buyers,” said Dangayach. “Meanwhile, we are seeing a noticeable shift towards larger centre stones – 3 carats and above – for statement pieces.”

Gem specialists agreed that buyers are increasingly prioritising a rich, saturated blue-violet colour, a clean appearance and precision cut that bring out tanzanite’s characteristic pleochroism.

“Buyers favour tanzanite bearing premium and exceptional qualities,” said Phophaliya, citing strong interest in special cuts, exclusive gems and custom layouts.

Banking on fine gems

Despite encouraging fundamentals, the tanzanite sector faces business challenges and supply issues, specifically maintaining a stable flow of fine-quality materials to the market. Dangayach said illegal mining, environmental degradation and fluctuating export regulations in Tanzania could easily disrupt the supply chain.

Long-term sustainability therefore will depend on ongoing investments in responsible mining practices and infrastructure upgrades, he added.

Macroeconomic and geopolitical headwinds are also impacting operations. Phophaliya said US tariff concerns and high gold prices have weighed heavily on sales of medium and lower price-point items. Demand for higher-end and finer-quality tanzanite, however, remains stable. In response, AG Color has been transitioning further into premium tanzanite to align with market demand.

AG Color now focuses on larger stones of 3 carats up to 100 carats, positioning the company as a go-to supplier of fine-quality singles, calibrated pairs, suites and fancy cuts – an approach that caters to luxury jewellery brands.

Looking ahead, both Dangayach and Phophaliya anticipate gradual, sustainable growth, underpinned by more consumers seeking distinctive coloured gemstones and jewellers giving tanzanite a more prominent spot in their product portfolios.

For instance, Bulgari’s Polychroma Tanzanite Falls necklace and Tiffany & Co’s Bird on a Rock Collection both shone the spotlight on tanzanite, highlighting its potential as a high jewellery stone.

“New collections launched by prestigious jewellery brands have featured tanzanite beautifully – this will certainly help raise the gem’s profile globally,” said Phophaliya.


News by @JNA