Editorial| Volume 124, ISSUE 9, P1484, November 01, 2019

With all jewelry, there are 4 components to the cost at retail (1) the material, (2) the workmanship/fabrications costs, (3) the retailer's profit, and (4) sales tax. The very low-end engagement ring is your local jeweler's bread and butter. A ring that cost them $500 at wholesale is usually marked up about 200% to$1,500. The more expensive the diamond, the smaller the markup. (A) There are fewer buyers, (B) they are more sophisticated, and (C) the merchant needs to make only one sale to realize a profit of \$5,000 or more.