What would you spend on a diamond engagement ring?

[NIRVANA]

What are everyone's thoughts? Some say spending 2 months salary is the way to go... others say 1 month's salary is more than enough to spend on a diamond engagement ring. Diamonds appreciate in value over time, so what could be purchased for $5000 a few years ago is different from what you can buy today for that same amount.

 

[BAM54321]

When I had little, I spent little. When I had much...I let her pick. Worked for me, might not for others. Although I didn't go that route, I like the sliding scale nature of the two months salary model. A bigger stone doesn't mean more love...just more money.

 

[Dreamer_D]

I always suggest spending what you can comfortably afford to shell out in cash, taking into account her desires. If she likes smaller diamonds, you don't necessarily need to spend the whole budget. If she likes bigger diamonds, and you can afford it, sky is the limit.

So it is a budget x desires interaction to predict final spending

 

[Brown.Eyed.Girl]

What are everyone's thoughts? Some say spending 2 months salary is the way to go... others say 1 month's salary is more than enough to spend on a diamond engagement ring. Diamonds appreciate in value over time, so what could be purchased for $5000 a few years ago is different from what you can buy today for that same amount.

The 2 months salary is a popular concept perpetuated by DeBeers to sell more diamonds. My answer is - spend what you would be comfortable spending and don't go into debt for it. What you're comfortable spending will be different for each person, and it's something you (as a couple) should work out. Some people may be willing to put in more than 2 mos., others may have different priorities or expenses (for instance, people who may be buying a house, or preparing for a baby, or have just been laid-off).

Btw, I'm not exactly sure if your last sentence is correct (someone else correct me if I'm wrong). Diamonds shouldn't be bought for the purpose of reselling later - I think most people really don't get the same kind of return on resale compared to what they pay initially. It is true that $5000 won't buy the same thing as years ago, but that may be due more to inflation. Also, one thing you learn quickly on PS is that not all diamonds are created equal (cut quality, shape, etc.).

 

[Kaleigh]

Spend what you can afford in cash... Diamonds are not a good investment... Don't buy into that thinking of well, I can turn around and sell it for more... Buy within your means... Don't go into debt... Etc....

 

[SB621]

My DH and I got engaged in college. We both didn't have jobs and were in debt due to college loans. I recieved a .76ct RB for my center stone. It was honestly bigger then what I thought I would get. We just upgrade my ring this year (4 years later) and I now have a 2 ct RB stone...a huge upgrade from where I was, but we both have jobs now, are out of debt etc etc. You buy what you can afford or what you are comfortable with.

 

[MAC-W]

What are everyone's thoughts? Some say spending 2 months salary is the way to go... others say 1 month's salary is more than enough to spend on a diamond engagement ring. Diamonds appreciate in value over time, so what could be purchased for $5000 a few years ago is different from what you can buy today for that same amount.

Spend only what you can afford at the time regardless of how many months or weeks salary it is. What is important is the thought not the cost. And if she doesnt agree, then is she really the right girl? After all she's agreeing to marry you, not the ring!

The 2 months salary (or even 1 months salary) are de beers marketing strategy, perpetuated by jewellery stores who have a vested interest in getting you to spend the most amount of money possible.

Diamond prices and diamond worth are 2 different things, so unless you have 50+ years to wait, or the budget of Liz Taylor & Richard Burton, I would advise to forget the "diamonds appreciate over time" mindset. Short-term - only the diamond prices increase, not the diamond resale values. Thats why second hand diamonds (with certificates) are such great value. Maybe that's a route you could take?

 

[antelope1]

I would advise to forget the "diamonds appreciate over time" mindset. Short-term - only the diamond prices increase, not the diamond resale values.

Absolutely!

If you bought it from a store with a 100% upgrade policy, at least you could trade it in at the old purchase price for credit toward a new diamond. All you would lose is the opportunity cost of inflation. (e.g., $5k in 2010 is worth $3900 in 2000 dollars, so you've lost $1100 to inflation)

If you bought it from a store without a 100% lifetime upgrade policy, then you would be stuck in the situation of selling it -- and the merchant or pawnshop knows that they can't get more for an old diamond than a new, so they give you a haircut on the buy-back price and add their margin on top of that -- you would be lucky to get 25% of the current value. So if the diamond was worth $5k now, it would have a buy back value of $1,250. I've literally seen a merchant pull out a Rap sheet and give the consumer exactly the whole sale price per carat on a buy back...

HTH!

 

[BAM54321]

I wondered where the two months salary came from...now I know.

 

[Dancing Fire]

If you bought it from a store without a 100% lifetime upgrade policy, then you would be stuck in the situation of selling it -- and the merchant or pawnshop knows that they can't get more for an old diamond than a new, so they give you a haircut on the buy-back price and add their margin on top of that -- you would be lucky to get 25% of the current value. So if the diamond was worth $5k now, it would have a buy back value of $1,250. I've literally seen a merchant pull out a Rap sheet and give the consumer exactly the whole sale price per carat on a buy back...
HTH!

LOL!! where??...more like 50% back of Rap.

 

[yssie]

Spend what you can afford in cash... Diamonds are not a good investment... Don't buy into that thinking of well, I can turn around and sell it for more... Buy within your means... Don't go into debt... Etc....

In a nutshell.

 

[purplesilk]

Just ask your SO's opinion, you may find you don't need to go into debt to safisfy her/his needs.
A diamond is an investment only if you work in the diamond trade.
An e-ring is not an investment, it's just a pleasure for the eyes because it is supposed to adornate your partner's finger.
Just try to be wise, don't buy a ring or a diamond if you're not sure she/he likes it, let your partner help you to find the perfect e-ring.

Purplesilk

 

[Gypsy]

What Kaleigh said.

I'd add: Many of vendors (at least PS vendors) have trade up and trade in policies. If you really want something you can't afford get a 'starter' diamond and work your way up. Or spend all your budget on a nice diamond and change the setting down the road. There are ways to work around a tight budget. Buy a nice (and hard) gemstone ring if instead of a diamond (one that costs less than a diamond, as there are a few that exceed the price of diamonds).

And you can always get a vintage or pre-owned piece. It will take a little hunting and a lot of knowledge but you can find some lovely pieces to buy.


I always think that ... money is a time saver. The more money you throw at something the faster you will get it. If you don't have money... then spend time and you will be rewarded with something lovely and affordable in money terms, but expensive in terms of time expenditure. Take an eyeclean I clarity diamond. They are are out there. Infinity has produced some lovely ones for example. But they are HARD to find and take patience. But if you are looking for a nice pendant stone--- it might be worth the time to hunt up a really nice deal on an I clarity stone. If you don't have time-- you can spend money on an eyeclean SI1 or VS2 and have the pendant quickly.

 

[Circe]

The way I look at it, it's less about spending X amount of dollars than it is about getting the thing you want.

I wanted a carat to a carat and a half, because I knew that looked nice on me: I wanted VS2 or above (never again! having seen SIs in person, I think they're a fabulous cost-saving measure), and I wanted G-J. If my budget could only have gotten me something less than all of those, I would have aimed for something *else* I wanted, that would still make me happy - a blingy eternity band, a W-Z stone, or an eternity band.

Like Mrs. Salvo's signature reads, "A deal is only a deal if you're getting exactly what you want." If you can't get exactly what you want ... want something else. The half-measure of almost-there seems somehow unsatisfying ....

P.S. - That turned v. philosophical. Sorry! The two-month thing is arbitrary. Figure out what you/she want, and work backwards from there ....

 

[antelope1]

I've literally seen a merchant pull out a Rap sheet and give the consumer exactly the whole sale price per carat on a buy back...
HTH!

LOL!! where??...more like 50% back of Rap.

It could have been a fraction of the rap price per carat. I was trying to not listen too obviously, and was talking to an sales rep myself at the time as well. It was at Charleston Alexander in Falls Church, VA.

 

[purplesilk]

Just ask your SO's opinion, you may find you don't need to go into debt to safisfy her/his needs.
A diamond is an investment only if you work in the diamond trade.
An e-ring is not an investment, it's just a pleasure for the eyes because it is supposed to adorn your partner's finger.
Just try to be wise, don't buy a ring or a diamond if you're not sure she/he likes it, let your partner help you to find the perfect e-ring.

Purplesilk

Forgive me for my mistakes, I'm not English/American.

 

[Imdanny]

Just ask your SO's opinion, you may find you don't need to go into debt to safisfy her/his needs.
A diamond is an investment only if you work in the diamond trade.
An e-ring is not an investment, it's just a pleasure for the eyes because it is supposed to adorn your partner's finger.
Just try to be wise, don't buy a ring or a diamond if you're not sure she/he likes it, let your partner help you to find the perfect e-ring.

Purplesilk

Forgive me for my mistakes, I'm not English/American.

But you didn't make any. No worries.

 

[bricklayer]

My husband and I (when we got engaged) made almost 100,000 a year in salary combined. He did not want to surprise me at all with a ring. We decided after looking around a while that 10,000 was a nice engagement ring budget, and was about a little over 1 months total salary, though I didn't really want to spend that much on a ring as we were house hunting. We decided on a diamond that ended up falling around 9,000 as it was a branded cut, and was just a little over 1 carat. I wear a size 6 ring, so I was able to get a nice look on my hand as neither of us was overwhelmed with the idea of trading in. Though now, a little later, we plan to anyway. I wasn't as particular with the setting so I just picked a basic platinum solitaire. We slightly exceeded the intended budget but we are happy with our choice.

Edit:

We did pay via wire transfer, but that's because we hate to use credit cards.

 

[purplesilk]

Very kind of you Imdanny...But I wrote "adornate" instead of "adorn"...please, help me to improve my English.

Purplesilk

 

[MarkBroumand]

Don't fall into conventionalism and buy within your means! Don't forget that upgrading can be a lot of fun later if that's the case look into what the jeweler's upgrade/trade up policies are.

 

[purplesilk]

Nirvana, did you ask the question because you have to buy an e-ring or just to have a talk?
Do you feel pressure on spending a certain amount of money?
Does this pressure come from your girlfriend or from your/her family/circle?
I didn't want a cheap ring but I also didn't want my fiance to spend a large amount of money, so I told him I didn't want a ring.

 

[Lislis89]

The way I look at it, it's less about spending X amount of dollars than it is about getting the thing you want.

I wanted a carat to a carat and a half, because I knew that looked nice on me: I wanted VS2 or above (never again! having seen SIs in person, I think they're a fabulous cost-saving measure), and I wanted G-J. If my budget could only have gotten me something less than all of those, I would have aimed for something *else* I wanted, that would still make me happy - a blingy eternity band, a W-Z stone, or an eternity band.

Like Mrs. Salvo's signature reads, "A deal is only a deal if you're getting exactly what you want." If you can't get exactly what you want ... want something else. The half-measure of almost-there seems somehow unsatisfying ....

P.S. - That turned v. philosophical. Sorry! The two-month thing is arbitrary. Figure out what you/she want, and work backwards from there ....

Thanks Circe, I was skeptical about the SIs as opposed to VS2s or VS1s but that is some great advice! I think my SO is looking at about 2 months gross salary so around $5000..... but he keeps things well hidden.... im not fussed on price, its more the style and setting that I want to be consistent as well as carat size....

 

[Cehrabehra]

the 2 month thing is pretty loose... when I got married we couldn't have afforded 2 months of my husband's salary - no way. It wasn't much but we needed every penny. Now, spending 2 months salary would be overkill, but overkill can be fun too

 

[vespergirl]

You should buy what you can afford without going into debt. My DH spent 2 months of his salary at the time, because that's what his friends did for their wives, and he wanted me to have a ring that was comparable to what the other women in our social circle had. However, he was also 35 when we got engaged, so he had plenty of savings, and paid for the ring in cash.

I think it's totally appropriate to spend less or more than that depending what you can afford, and also the girlfriend's tastes.

 

[bgray]

when i got married i had a plain white gold wedding band. we bought what we could afford which was very little. now i have a diamond ring and a diamond wedding band.

 

[purplesilk]

What would you do/think if you knew your fiance is going to spend 1/10 of a month salary on your e-ring?
I mean, no debt, good incoming, many years together,...only because people around him (his family, his friends) tell him of the importance of the meaning beyond the ring, not of the ring itself?
My SO gave a miserable ring and I felt humiliated;a lot of time before and a lot of times, I told him I didn't need a ring to know his feelings, but he did what he had already planned and I really felt humiliated.
I didn't think I deserved a huge diamond, but I didn't deserve people saying to me : "Nice promise ring, it means the real e-ring is coming soon." or "After all it's only a symbol."...and I received those comments from good friends.