TanzaniteOne Changing The Market Forever
In a move that will most definitely change the face of the tanzanite marketplace, a new company, and a new strategy, has been formed. TanzaniteOne, formerly known as Afgem, has announced that they will continue to mine and control the lions' share of the goods coming from Block C in Merelani, where the overwhelming majority of the tanzanite rough comes from today.
In the past, Afgem would hold bidding sessions four times a year, and would invite only the biggest and most influential players in the game to participate in these events. Although no one company was allowed to bid on the entire production, there was nothing in place to permit one company from out-bidding all others when each parcel was put up for bids. Generally, a few people went home happy and the others were left with nothing. Eventually deals were struck and the tanzanite market prices were uneven, at best.
This new arranement is going to be different. A reported seven "sightholders" have been selected based on a number of criteria, including commitment to the tanzanite market, the ability to take the goods from rough to finished product within their own company (this is known as vertical manufacturing), support of the newly-formed non-profit Tanzanite Foundation, and their ethical approach in the marketplace. Six times per year, they will present sight parcels of rough to the sightholders, each of whom is invited to buy a particular parcel. There will be no haggling over price, and no other alternatives.
I'm sure you have some questions by now, and here are some of the answers:
Q: When is all of this going to begin?
A: Actually, the first presentation was in April, and the next get-together is scheduled for July 2nd, 2005. In other words, it's already here.
Q: Is this going to affect tanzanite pricing?
A: You can take that to the bank. One of the primary reasons for this new method of marketing these goods is to get the pricing out there more in line in what the manufacturers believe it should be. READ: HIGHER Any model based on the DeBeers Corp. diamond business should tell you that in a hurry.
Q: What about supply - will I still get all the tanzanite that I want?
A: There is no shortage of tanzanite in the world today. People in the know estimate that the Merelani mines have anywhere from 12 to 15 more years of product ahead of them. However, what consumers will notice is a controlled flow of merchandise into the retail market. The TanzaniteOne, through it's ability to manage the flow of goods to the sightholders and ultimately to the consumers, will help to keep prices steady, and support increases by "dwindling shortages" from time to time. You may take from that what you wish.
Q: What about after the 12-15 years, 2020 for instance? Where do I get my tanzanite from at that point?
A: Ever heard of "E-bay?" No, just kidding here. If I could see that far into the future, I'd be very rich now and have a beautiful blonde Scandinavian secretary typing this for me. Actually, I'm sure that there will be some stockpiling of rough to extend the goods later, but at that point, many consumers may find the market too pricey and turn to "the next big thing," whatever that might be at the time.
Q: So what do I do for now?
A: I would never recommend that anyone buy any sort of jewelry for the sake of investment. My wife has a zillion pieces that I have bought for her and not one of them was ever dictated by how much it might be worth some day. However, if you see a tanzanite piece that you really like and have the means to afford it, I would recommend you go for it. Trust me, the prices for tanzanite are headed up.