Tanzanite

In the late 1960's a curious blue mineral was discovered at a place called Merelani, in the foothills of Mt. Kilimanjaro in Tanzania. The mineral was identified as zoisite, but it had never been seen before in transparent blue, violet and brownish crystals such as these. Later, it was discovered that heating the material eliminated all colors except blue and violet. Properly oriented stones cut from these blue-treated crystals looked like the finest sapphires, only completely transparent and much larger. In 1970 Tiffany and Co. gave the material a tradename: tanzanite, after the country of origin, which to this day remains the only known source. A multimillion dollar promotion over the next few years turned tanzanite from an "unknown" gemstone into a demand-item in jewelry stores all over the world.

During the mid 1970's, Tanzania's government turned socialistic, and the mines were nationalized. Tanzanite production officially stopped, and to this day the only material produced is mined illegally (mostly at night); some newly-cut stones represent rough tanzanite acquired by dealers before 1975-76 and hoarded as the price rose. The wholesale price of tanzanite reacted to supply/demand factors in a classic way, by rising approximately 2 , 500% between 1970 and 1980.

This track record is unmatched by any other gemstone.

Today the demand for tanzanite, especially in sizes between 6 and 15 carats, continues to be strong, and the supply very poor. Tanzanite has become a popular and well-known gemstone, a staple of the jewelry trade, and illustrates the power of promotion in creating demand for a reactively unknown gemstone.