22. March 2011 21:48
Following a very successful Tucson show this February, Tanzanite prices have surged by 15 – 20%. Demand was very high at the show, especially for fine pieces and supply was very low. Being based at the source, we have experienced first hand how few fine Tanzanites are being mined as a proportion of the total production in recent months. We have been predicting a large price rise for 6 months now and have been resisting price pressures but the tide is now overwhelming and prices are rising across the board.
Reasons for the Rise
As the western world hauls itself out of the depths of the recession, pent up demand from consumers has gathered pace. People who have been yearning to buy Tanzanite, but have been paying down credit card debt or simply exercising restraint, find themselves in 2011 in a better position to make the purchases they have been wanting to make for 2 years. This demand has unleashed itself upon an unprepared market. Jewelers have been buying very cautiously throughout the recession and find themselves entering 2011 with low stocks. Suddenly they are presented with a surge in demand and they are struggling to increase inventories to service their customers. However, they are finding fine Tanzanite harder than ever to come by and the resulting rush to buy has forced prices up quickly and ferociously as they chase the few stones there are in the market.
How does this affect your Collection?
Clearly, this is good news for those holding Tanzanite collections, especially for those who purchased during the recessionary period. We predict prices to continue rising hereon out, barring of course any return of recessionary sentiment. We will continue to buy diligently the very finest 1% and we will not compromise despite the difficulty in obtaining the quality we are known for. We will continue to hold our prices as they are for the near future for the benefit of our members, as we absorb more expensive rough into our vault. However, the mitigating effects of older stock will decline in the next few months and we may be forced to follow the market trend in coming months.
Lapigems Gem Company