When it comes to jewelry, I’ve long said you get more for your money at Costco. But now an independent appraisal I saw on Good Morning America confirms it.
Good Morning America ran a segment where they had an expert compare similar diamonds found at Tiffany and Costco Wholesale.
The Tiffany diamond, which was being sold for $16,500, was appraised at only $10,500 — meaning it was being sold for 58% more than its real worth on the open market.
The Costco diamond of similar size was being sold for $6,600 but was worth 17% more than that price at appraisal!
The reality is Costco’s markups are teeny tiny. With Tiffany, you pay for image, luxury square footage of those stores, and that little blue box!
This whole issue came up because Tiffany actually tried to sue Costco when the wholesaler advertised certain cuts of diamonds in their cases as “Tiffany diamonds.”
Costco admits to BusinessWeek that the advertising was stupid. Nothing illegal, but a dumb move nonetheless. I thought it was very transparent of Costco to admit that they’d made a misstep.