Saturday, May 11, 2013

Diamond Rings from Costco? Who knew...

Now you know... (Businessweek, via Instapundit and yet another reason to like Costco):

The assumed benefit of a Costco ring is that even at $40,000, you’re getting a higher-quality diamond than you’d be able to afford at a more prestigious store. As with any other name-brand product, Tiffany’s reputation (not to mention the classy Audrey Hepburn endorsement) raises the price of its jewelry.

Meanwhile, that Costco diamond might actually be worth more than its price tag. In 2005, Good Morning America appraised both a Tiffany diamond and a Coscto diamond. As it turned out, the $16,600 Tiffany cut was 58 percent more expensive than its $10,500 value, while the $6,600 Costco version was actually 17 percent under its appraised value of $8,000. On the blog, several women admitted to having Costco rings and said that when they had them appraised, every single ring was worth more than they paid, sometimes by thousands of dollars.

Tiffany offers more services than Costco. Its expert jewelers teach customers about the different cuts and qualities of diamonds. And once a ring is purchased, it can be returned for cleaning or resizing at any time.

Costco doesn’t resize rings. But it does sell six-pound packages of cheese.

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