Not only are diamonds common, but we're also paying way more for them than they're worth. Sure, diamonds go through a very involved process. But, still, the markup is outrageous. Longtime jeweler, Vincent Taylor, told The Guardian, "Profit margins [by high-end jewelers] are so big that the price you pay is a false price." Taylor's colleague and fellow trade jeweler, Cavern Gill-Vernon, explained that some jewelers have "profit margins of 300%." Although Taylor and his associate are located in the United Kingdom, similar markups exist in the United States.
According to The Atlantic, the markup on a diamond, along with its setting, could be anywhere between 100 and 200 percent. In a removed video reported on by Uproxx, a YouTuber by the name of Jason investigated diamond prices and discovered the staggering markups for himself — from 253 percent at Tiffany & Co. to 336 percent at Harry Winston.
Costco swooped in on this lucrative market, and started selling Tiffany-esque rings for a more reasonable price — their error was using the word "Tiffany" to help describe and sell the product. Obviously, that did not sit well with Tiffany & Co. who, as reported by CNBC, sued the company in 2013 for $19.4 million. When it comes to diamonds, it seems the customer never wins.