American vs. Canadian Pricing - same store/same ring - thousands less

Joe_the_Plumber · Feb 5, 2010

Hello all,

I have been so impressed with the wealth of knowledge and courteous posters on this forum I knew this was the best place to enquire

I am considering purchasing a ring from Costco. Yeah, I know. The old shopping list of milk, eggs, diamond ring, toilet bowl cleaner, vat of mayonnaise. I have researched quite a bit and have come across numerous good experiences with the quality of the rings sold at Costco. I am sure many of you have seen this Good Morning America expose on Costco vs. Tiffany''s. However, I take it with a grain of salt, but it does draw some interesting comparisons.

http://abcnews.go.com/GMA/Moms/story?id=1197202

Anyways, I am considering this ring:

http://tinyurl.com/yzf9wcz

But the painful thing is, in the great land to our south, the exact same ring can be had for $3000 less.

http://tinyurl.com/yf2oywu

A friend of mine is making a trip up to Canada from the US in the next few weeks and has agreed to bring the ring with her, and I figured, that with the favourable US/Canadian dollar conversion, and the fact that the state tax is 7% less where she is coming from, I could pay $11,380CDN all in, with state tax and currency conversion, or $14,700 CDN after the Canuck taxes if purchased here. That''s a saving of over $3300 dollars, for the exact same ring!!

My question to all you fine men and ladies in the know on this forum is ... am I making a wise decision??

I have gone to a reputable and highly recommended jeweller, with all the latest CAD software and equipment, and I showed him a picture of similar rings I had found on the internet. He said he could make whatever I wanted, and with a slightly better quality stone than the Costco one above, it would cost around $10k to do. However that was a 1 carat stone. This Costco one is a 1.5 carat stone, and my lady is more about size than substance. He poo - pooed the pricing he saw on the web pages of other rings I had brought in, saying he could do them for significantly less, but when he saw the Costco one (not this one, at the time is was another one they had available) .. his tone changed and he quickly dismissed the page, without commenting, almost as if he could not do it for this price, and it got me thinking (and that was at an inflated Canadian price as well). A similar ring on the Canadian Tiffany''s website STARTS at $26,000!!

So the pros and cons of going through with this US purchase as I see them are:

Pro''s:
1) Costco has a iron clad return policy
2) I can return the item purchased in the US at any Canadian Costco, so no obligation
3) The ring purchase is done in one fell swoop, I am not one who personally enjoys this whole process, and would like to just buy it and be done
4) I am getting a 1.5 carat stone thousands less than the Canadian Costco charges
5) Comes with GIA and IGI grading report
6) Most people I have seen on the internet have reported getting a stone BETTER than what their minimum grading had indicated

Con''s
1) I don''t get to see it first
2) No mention of cut
2) I bought it at Costco (although my lovely lady would not care one iota)
3) I dunno, am I missing others?

Big purchase for me and I am clueless, so I would love some sound advice from the pros or prosumers around here.

I''ll send you some maple syrup and my old hockey stick if you help out eh!

Thanks in advance all. And please, go easy on me. I''m an uninformed man drunk on love .... oh ... and some beer.

Thanks

canada_ham · Feb 5, 2010

hi joe

fellow canadian here

welcome to pricescope!

i am not sure if you are making a wise decision. not because you plan on buying a ring in the US but because you plan on buying a ring without seeing it first. not all 1.5ct princess cut diamonds will look the same. a poorly cut diamond will sparkle less than a superbly cut diamond. also, is the ring a I VS2 according to IGI standards or to GIA standards? i have read that IGI is "generous" with their grading. by buying from costco unseen, you risk buying a diamond that performs poorly. this is a large purchase you are making, i would personally want to make sure that i am getting the best i can for my hard earned dollars.

that said, buying a ring from a US vendor is a great idea. in my own experience, US vendors are cheaper and have a better and wider selection than canadian vendors. if you are willing to invest some time, you can find an amazing e-ring for your significant other. there are some great vendors that are very well known here on pricescope (for example good old gold and whiteflash) and any of them will be able to help you find the perfect ring. these vendors will be able to provide you with images and scans of diamonds you are interested in so that you are not buying a ring unseen. i bought my own ring from a pricescope vendor and am very happy that i did. i know i got great value for my money

i am not an expert in princess cut diamonds so i''m hoping that someone that knows more about them will jump in in

hope that helps, good luck in your search!