This article was updated on September 2021 to reflect the most up-to-date Costco Jewelry guidelines.

The Truth Behind Costco Engagement Rings

A few years ago, we made a quick online comparison between Costco Engagement Rings & James Allen. The result? While we love Costco as a wholesale price club, their diamond selection and advertising raised several questions. The issues raised stemmed from a general lack of knowledge to perhaps deceptive wording.

So before you go Engagement Ring shopping and buying diamonds from Costco, make sure to read the following points so you know what you're getting into. As a quick disclaimer, though, we would like to state that we absolutely support Costco as a retailer. While we don’t feel that they are the ideal location to buy an engagement ring, based on the items listed below, that doesn’t mean you can’t get a great deal on an engagement ring. You have to be mindful when perusing their selection and make an educated decision.

Things Clearly Missing from Costco’s Engagement Rings

The issue with Costco rings, which we hope to shine a light on, is that there are things missing and things hinted at but ultimately not spelled out.

We’ll be referring to Costco’s website (as detailed here!), so feel free to follow along.

Costco’s Position on GIA Certificates

You might be wondering, are Costco diamonds GIA certified? Per Costco’s website, their position on GIA Certificates is as follows:

• Gemological Institute of America (GIA) Diamond Grading Report - All items with a 1.00 carat or larger diamond center stone will include a GIA Diamond Grading Report detailing the center diamond.

• Gemological/Jewelry Report - All items with a 1.00 carat or larger diamond center stone will also include a Gemological/Jewelry Report describing the article of jewelry. This report will not have a monetary value listed. You can contact the the company that issued the report and request an insurance appraisal, in which case your Costco purchase price will be documented as the insurance replacement value.

What’s Missing From These Statements

Diamond Certifications are essential when buying a ring. I was rather disappointed in this because, at first, you might think that Costco would only sell rings that are GIA Certified rings. Unfortunately, that is only true of diamonds with an individual weight of 1.0ct and larger. Any smaller, then it is simply not. Remember, the individual weight of the diamond must be 1.0ct, not the total carat weight of the ring. Given that 99% of buyers cannot accurately judge a diamond’s condition themselves, even if you happen to have a jeweler’s loupe on you, this means that you must rely on the diamond’s rating for a proper assessment. By limiting the amount of information available to you, Costco is exposing the buyer to potentially grossly overspending on an inferior diamond.

Don’t be Mislead When Purchasing a Costco Engagement Ring

While the glaring issue regarding GIA Certifications are at the very least upfront, Costco uses additional wording that can skew their buyers’ perception.

Costco’s Diamond Sales Pitch

Per Costco’s website, you can also find the following declarations:

• Costco offers our members high-quality jewelry at an exceptional value. Our team of GIA Graduate Gemologists inspect every diamond to ensure it meets Costco's strict quality standards. We only sell natural and untreated diamonds.

• Costco Article of Description - A detailed article of description will accompany diamond items with center stones less than 1.00ct.

What Does That Mean Exactly?

The statement that truly catches our attention is, "Our team of GIA Graduate Gemologists inspect every diamond to ensure it meets Costco's strict quality standards." There are two things here that raise our eyebrows.

First, advertising that you use GIA Graduate Gemologists gives the impression that your internal ratings are as good as a GIA certification. If you doubt that these are not the same, try selling a ring without a GIA Certification, and you will quickly realize that prices can drop as much as 50% or more. Secondly, why even mention that you use GIA Graduate Gemologists unless you are trying to piggyback on this designation and thus purposefully mislead your customer base?

Then we have the "Costco Article of Description," which means nothing at the end of the day. The Article of Description is a paper describing what you bought from Costco's point of view. If that point-of-view is not signed, sealed, certified, official, etc.… then it's just a paper.

Other Things To Look Out For

Costco’s Most Popular Rings tend to all be Halo mounts. However, by utilizing this mounting style, they can maximize the number of diamonds under 1.0ct used, thus maximizing the number of non-Certified diamonds. We can see this logic since it is safe to assume that the individual purchasing this ring is probably price-conscious. A Halo setting will provide a more dramatic presentation while utilizing smaller diamonds.

Costco has precious few Cut ratings available. Most of their Round, Princess, and Cushion diamonds have no Cut rating at all. It is only when selecting the absolute most expensive rings that Costco will provide you with a Cut. Even with stones above 1.00ct, you’d have to obtain the GIA Certification to see the Cut. Since, as we’ve said before, Cut is perhaps the most significant indicator of a Diamond’s quality, this will have an extreme effect on its pricing.

Costco Engagement Ring Summary

In summary, you’re probably better off purchasing your engagement ring somewhere else. See our two-part Costco vs. James Allen comparison if you want to see how some of our favorite online retailers compare to Costco. This should leave no doubt as to what choice is best.

Now that you’ve learned more about Costco’s Engagement Rings and Costco jewelry in general, would you like us to help you with your diamond ring search? Contact us, and we will provide you with a one-on-one service that will get you the best diamond available!