This presents an intriguing prospect for future
tanzanite prices, relative to diamond prices, for example.
The only (minor) disappointment was in Bernard Olivier «s commentary, which included this comment: `... despite
tanzanite prices remaining under pressure.
A 15 P / E seems reasonable in light of the current high level of revenue / earnings growth, the medium term 9.4 % carat production growth rate and the still depressed
tanzanite price.
Not exact matches
It's harder than
tanzanite (at 7 - 7.5 on the Mohs Scale), with a correspondingly higher
price (2 - 4 times that of
tanzanite).
All in all, considering the diamond / gemstone
price increases, gold up 170 % in the past 5 years, and a possible (very) inflationary (and / or alternative asset friendly) environment to come, the pecking order and
price outlook for
tanzanite appears neutral (at worst) to decidedly bullish.
There has been a changing business mix (of rough, polished and jewelry) over the years, but v clearly the credit crunch / recession caused a
price crash in
tanzanite (to $ 5.69 per carat in 2009), with a slow recovery to $ 8.89 since then.
And with the
price of
tanzanite still sufficiently beaten down since 2008/09, I'd venture that a recession wouldn't necessarily impact it further at this point anyway...