Would it be smart to buy a large carat Tanzanite as an investment?

Question

Would it be smart to buy a large carat Tanzanite as an investment?

Answer 1

Well...

   It all depends on how you go about researching your Tanzanite. Tanzanite itself, can be an investment gemstone if you invest in larger carat weights, better "cuts" and rich color. These are some recommendations fo you:

-Deep, Rich Color. Tanzanites are Trichroic ( meaning 3 distinct colors ), Blue, Violet w/ a red flash. "4A" Color is considered best grade. Sometimes also referred as Top Gem World Class on some TV Channels.

- Carat Weight is important. Stones that are 5 carats and higher are considered investment weights.

- Well Cut stones are very important as well. Do not settle for "Indian Cutting" They get paid by weight and will cut corners. A "well-cut" stone brings out the brilliance.

- Also price. Check price per carats. A VERY Good Stone can run anywhere from $600-$900 price per carat. On average.

The thing to remember is, Tanzanite is a (1) source gemstone. And although the mine is not producing as much as it was years ago, there is still several years of "rough" that has already been mined and just sitting there. I would say though that within maybe (2) generations or so, most better grade stones will be in the hands of private collections.

Answer 2

No because assets like yours are very illiquid and are not guaranteed to go up in price.

Answer 3

Well... what price are you getting it for for a starter; is the person selling it to you making a huge markup?

The essential factors affecting whether it's worth it or not are;

1) Liquidity - if you buy it now, how easily can you sell it again?

2) Historic Prices - does this thing actually go up in value?

3) Comparison - Compare historic price movements with bond yields then factor in liquidity; is the bond a winner or the tanzanite?