Tanzanite - a new strategy

So you think tanzanite is expensive? Well, obviously TanzaniteOne, the company that last year bought the mine of south-african based AFGEM company, holds a different opinion. A new rigorous sales policy should put things right (for them).

TanzaniteOne CEO Michael Nunn talks about "vertically integrating" the tanzanite industry following the blueprint of the diamond industry. From now on the total production will be sold to only six "sightholders" the world over. Those sightholders will be guaranteed three consignments per annum.

The new plan is called "Preferred Supply Strategy" and is, of course, not aimed at maximizing profits but at stabilizing the market. Did you think differently? To protect the thus stabilized market and to keep sightholders (and all others) from falling prey to the seduction to buy from smaller and potentially cheaper mine operators in the vicinity, TanzaniteOne buys each and every piece of tanzanite rough they can lay their hands on.

Certainly it is just a malevolent rumour that insiders talk about wholesale target prices of 2000 US dollars per carat. And certainly only the lack of bargaining skills is to blame for the fact that several gemtraders, all old hands in the african gem business, returned from Tanzania empty handed this year.

Honi soit qui mal y pense!

So, rejoice and be as merry as a lark at the prospect of contributing your share to a stable market by forking out several thousand dollars per carat for class tanzanites...

Ps: TanzaniteOne┬┤s shares, traded at Londons Alternative Inverstement Market (AIM), are developing splendidly.