Are millenials buying smaller diamonds?

[whitewave]

Are millenials buying smaller diamonds? I came across this article about how millenials don't appreciate and don't want generational stuff handed down and wondered if they are also going toward minimalist jewelry.

Article: http://www.nextavenue.org/nobody-wants-parents-stuff/

I started noticing rings,like this on etsy:

 

[pearaffair]

Interesting article. I think it is definitely true in some cases.

And I really like the second ring set you posted!

 

[whitewave]

I do too. Go to Etsy and search "minimalist engagement ring"... 3,400 hits. I could see two of my millenials going minimalist and one staying under a carat...

 

[kenny]

Younger people generally earn less money than they will when they are older.

But that headline wouldn't make good clickbait.

 

[bmfang]

Apart from them earning less, a lot of them are saddled with student debt which certainly impedes the ability to have decent amounts of discretionary income to spend (I say this as one who is in the generation just before the millenials). Plus when it comes to working out whether to spend one's money on a discretionary item like a diamond vs a deposit for a house, a lot of millenials I know prefer the latter option (given that housing where I am is ridiculously expensive).

 

[whitewave]

I'm not sure it is a money thing as it is a mindset thing. (Or could be both)

I found this: "Millennials in particular are seeking out this minimalist lifestyle. Millennials-- the 18-34 demographic make up more than a quarter of the U.S. population and the majority of the workforce. Millennials have a unique set of values around how they choose to spend their money. They grew up during the recession, entered a struggling job market and must now pay off record amounts of student debt. Retail expert, Robin Lewis, of The Robin Report, explained the consequences of millennial factors, “This is a generation that is bigger than the boomers in population, but their wallets are smaller, and they are more into the style of life than the stuff of life. This is a big threat to retail. They’re not into a lot of shopping.” http://www.forbes.com/sites/deborahweinswig/2016/09/07/millennials-go-minimal-the-decluttering-lifestyle-trend-that-is-taking-over/#4c7e01aa4c1a

So both. They choose to spend their money on the "style of life" over "stuff of life".

I'll have to see if I can find anything on jewelry trends with millenials.

 

[Asscherhalo_lover]

It really depends, many of my friends are going for non-diamond and certainly non-traditional rings ala mociun. Still plenty of others are going traditional at least a carat if not bigger. I think it really depends of lifestyle for than anything.

 

[ChristineRose]

I wonder if anyone has kept records of engagement diamond size over time? I know that there are major regional variations.

The standard of a diamond ring for engagements is usually traced to the DeBeers campaign of 1938. Obviously there were diamond rings before then, but plenty of engagements didn't have a diamond. There are people around still who got married before 1938. I don't think it's correct to assume that the idea of a big diamond is "normal" and that a reversal of that trend is strange.

 

[whitewave]

I appreciate the commentary!

I found several articles about milennials and jewelry.

The first sentence of this one is "diamonds may be losing their shine": http://www.cnbc.com/2016/06/16/blame-millennials-diamond-jewelry-business-in-a-rough-spot.html

Debeers article on 3 millenial trends: http://www.debeersgroup.com/en/reports/insight/insight-reports/insight-report-2016/millennial-trends.html

Millenials drive jewelry trends in 2017:
http://www.jewelleryfocus.co.uk/17499-millennials-drive-jewellery-trends-2017

Plenty more results. I googled "milennials + jewelry trends"

CR, it would be interesting if someone did.

 

[pearaffair]

I do too. Go to Etsy and search "minimalist engagement ring"... 3,400 hits. I could see two of my millenials going minimalist and one staying under a carat...

I'm afraid I couldn't find it... If it's not too much trouble, could you tell me the name of that second listing?

 

[whitewave]

Sure, here is the link: https://www.etsy.com/listing/459136128/emerald-cut-diamond-engagement-ring-in?ref=hp_rv

 

[pearaffair]

Sure, here is the link: https://www.etsy.com/listing/459136128/emerald-cut-diamond-engagement-ring-in?ref=hp_rv

Cool, thanks!

 

[totallyfree]

I found this: "Millennials in particular are seeking out this minimalist lifestyle. Millennials-- the 18-34 demographic make up more than a quarter of the U.S. population and the majority of the workforce. Millennials have a unique set of values around how they choose to spend their money. They grew up during the recession, entered a struggling job market and must now pay off record amounts of student debt. Retail expert, Robin Lewis, of The Robin Report, explained the consequences of millennial factors, “This is a generation that is bigger than the boomers in population, but their wallets are smaller, and they are more into the style of life than the stuff of life. This is a big threat to retail. They’re not into a lot of shopping.” http://www.forbes.com/sites/deborahweinswig/2016/09/07/millennials-go-minimal-the-decluttering-lifestyle-trend-that-is-taking-over/#4c7e01aa4c1a..

This quote sums it up for me. Behavioural economics also suggests that more and more millennials are rejecting consumption advertising. "Diamond engagement ring" - Says who? DeBeers? Tiffany? Three months salary - no way, don't tell me what to do! So they (we) have less money, are marrying later (and there is less of an expectation parents will pick up that bill), and a rejection of traditions.

 

[CTrinh]

As a millennial myself, I was raised up working hard, learned about savings, retirement, and owning equity early on. The fiancé (we got engaged on Saturday), and I both worked in the finance/investment management industry. We are exposed to how the 1% lives and it opened our eyes knowing that we could be there someday, but most importantly enjoying what we have and accomplished. We purchased a house, moved to the suburbs, and commute into Boston every morning.

Regarding the diamond, she didn't care what I got her. I know I could've got her something small and she would be happy, but I wanted to show her how I feel. I picked and choose the engagement ring plus diamond 1.11ct. This is after saving for 1.5 years with $250-500 biweekly deposits. And note, we did not get any help from our parents.

Speaking to many of the millennial at networking events and friends who lives in Boston, most cares about where they are in the social life, prefers to rent in expensive places (uses 50-75% of their monthly paycheck, and some have their parents help with rents), and about 60% do not put money into retirement/savings. They live checks by checks, prefers traveling, and not thinking about their future in the long term. My hobby is to help people rebuild their credits and majority of them are in credit cards/student loans debts. I know because I set up plans to reduce their debts for free. Again, this is my observations and experience. Maybe it's the mindsets of others working in a different industry than Finance, etc.

 

[Alybetter]

(Anecdotally)
I'm 37, so not sure if I count. My husband is 28. We don't have debt, are quite comfortable financially, yet I still wouldn't spend over a set amount on a stone for any occasion. My engagement stone was very inexpensive to us. Even though it is possible for us to do so, I can't imagine spending more than 5-10 thousand on anything that isn't a car, or an improvement/asset to our homes. I want to live comfortably in old age, and provide for our son rather than have a vast collection of anything that can't be considered a sound investment.

Perhaps it's not the even expenditure that is really the linchpin, perhaps it's the value and/or symbology that no longer holds so much value? I don't know, just musing. We didn't even have a wedding. We bought our first house instead, and paid half of it off.

It's got to depend on the specific millennial. Very interesting topic.

 

[diamondseeker2006]

I know of really very few, if any, young 20 somethings that can afford expensive diamond rings. I don't think it's a matter of not wanting one, it is accepting the reality that it isn't in the realm of possibility. It's good to buy what one can afford.

(Our three children are millenials.)

 

[pearaffair]

Also, most of my millennial friends are not married and in no rush to be?

 

[Fulvia]

This topic has been brought up repeatedly on RockyTalky, and clearly it's a hot one in the jewelry industry.

I think the answer will depend on which millenials we are talking about, because millenials as defined by age are by far not a homogenous group. I am a millenial as are all my friends and although we have all waited longer than most to get married (I'd say the average age is 32-33) we all have diamonds on the larger end of the scale (1-2 carats is a rough average).If "millenial" = "hipster" then a lot changes: etsy, minimalism - these are definitely trends amongst a subset of millenials that are gaining ground.

 

[AdaBeta27]

Marrying later, as in 27-29 was the norm for my peer group and we were trailing edge of the baby boomers with engineering and tech careers. In our case, marrying later meant *larger* and higher quality diamond rings, not smaller. Women were buying their own diamonds back then, too. "Right hand ring" term hadn't been coined yet, but "fashion remount" setting in bold gold were out there for those who didn't want an e-ring look.

I think money issues are a lot of it.
-- I haven't studied the issue, but it appears to me that the cost of college degrees rose far faster than the starting salaries. There seems to be less payoff for getting a college degree, unless you specifically targeted one that is specific vocational training that pays well. Back when you could work your way through college and finish with low debt at 3% interest and start in a job that paid over $40k to start and gave you 4% - 6% annual raises every year, no layoffs, total job security, there was a huge payoff to college. Ditto for getting a college degree back when ANY college degree was the ticket to career advancement. There has been downward pressure on wages for over a decade, and much foreign competition driving salaries downward. High college cost, for low wages and no respect and no job security: People don't go shopping as much. Everybody's like a dog with a bone nowadays. They don't want to give anyone their money unless they are getting a really good deal.
-- People have college loan debt nowadays, compared to Baby Boomers who finished with none. There were a lot of Baby boomers whose parents were very money-savvy and had good accountants who advised them how to work the financial aid system. Some of my peers had their college degrees paid for by parents, under that table. The kids were emancipated, some even married, and they applied for and received grants. So, they had money from parents under the table, and the good grants doled out back them, and they used that grant money to say, buy their car, or buy their furniture, or buy whatever, and then they started their high-paid tech and engineering jobs not only debt-free but with their nests already feathered, too. I think today's financial aid system is far less able to be milked like that now. Not nearly so generous. Grants are small and not plentiful.
-- It became more socially acceptable for young women to have kids out of wedlock and keep babies and get government assistance, which reduced not enhanced that woman's likelihood of marrying. Face it: Some women won't be getting spouses at all.
-- More men resisting marriage and financial responsibility for wife & kids due to low pay, lack of job security, need to work 2 or 3 jobs just to earn a decent income.
-- Men resisting marriage altogether. If they can earn enough to live the lifestyle they want, do what they want, when they want, and buy food at restaurants, and don't want burdened by the expenses and compromises of family life and child-rearing, who needs a wife anyway. (That's probably why so many young women are having their kid(s) unwed, because the local men clearly aren't marriage material.)
-- Men resisting diamond e-ring purchase. Even back in the '90s when we were all making good money, I had friends whose fiances bought a diamond cluster ring or a much smaller diamond than they could have afforded, because the man didn't approve of big spending on diamond ring. How many times have we had some guy come on here and gripe about having to buy any diamond ring at all, then gripe double when he realized that quality costs money. lol
-- More options exist today, other than go buy a brand new diamond ring, thanks to Internet and ebay. More people are considering or purchasing estate diamonds and older cut diamonds and secondhand rings. I had my guy buy a "used" diamond at our city's outstanding estate-jewelry and pawn shop, and that money went a lot farther there than it would have buying a brand new ring at a b&m in those days. I had the diamond remounted in a new setting, so to me, that negated any "used" about it, but friends and family were still shocked and some were disgusted, I am sure. But I see more young couples going the estate diamond ring route. My nephew got engaged in 2016 and they got an estate ring, very traditional, RB diamond center about .8ct, flanked by 2 baguettes, platinum.
-- The whole "blood diamond" issue may be a factor. That side of the diamond industry was never discussed much in the past. And if couples just don't have the money for a diamond e-ring, the blood diamond platform gives them an out, instead of having to say "No way we could afford a diamond e-ring."

 

[pearaffair]

I'm 29 and most of my friends of the same age are unmarried! Blows my mind. I think a lot of millennials are focusing on a career and buying a home instead of getting married.

 

[chamomiletea]

I'm a Millenial.
My Millenial friends in the UK were honestly not bothered getting a massive diamond. They are more concerned with saving money, saving for a house and a family. They would rather spend their money on a house and a car and savings than a ring. They tended to go out with their partners and choose a sensibly priced small diamond or diamond cluster ring. Because the diamonds are small they tend to be concerned with setting and choosing something of a style personal to them.
My American Millenial friends are more traditional in terms of wanting a more tradional 'looking' ring however they are happier to chose gemstones and diamond alternatives to get the 'big' look without the price tag. Everyone is concerned with putting money towards a house instead of a ring. Houses are so expensive now. When my parents were young they could afford a starter home on one salary. Now you need two salaries and an 80% mortgage.

 

[Resonance.Of.Life]

My friends and I are millennials, although we've never really thought much of it. We all have diamonds that are in the larger side (2-4 carats) and have bought homes (with 20% down even in expensive California) in our 20s . We didn't go into debt for any of my rings. I just think it's more of a priority for how people spend their money, not by their generational titles.

 

[royalstarrynight]

Millennial like having choices without being tied to societal obligations.

This means a variety of things in terms of size.

 

[Strawberry129]

I know of really very few, if any, young 20 somethings that can afford expensive diamond rings. I don't think it's a matter of not wanting one, it is accepting the reality that it isn't in the realm of possibility. It's good to buy what one can afford.

(Our three children are millenials.)

Agree with it's good to buy what you can afford.

Fiance and I are 29 and 27 respectively. We waited 7 years to get engaged and for our career to jump start. We bought a ring that he can afford without going into debt or taking any loans while still having enough money to buy a house soon.

We also agreed that we didn't want a big, expensive, stressful wedding and are just as happy doing it Vegas style (hopefully soon). I don't feel too guilty with my ring/wedding band even though it's a new car because we made our choice. We can't imagine dumping so much money into one day (wedding) running around like headless chickens. It's just all about priorities. Some people want a nice ring, some want a nice wedding, and others just want a nice house. One thing that's for sure, we avoid debt like the plague. That's always important for any millennials.

 

[Diamond_Hawk]

Such an interesting topic, Whitewave.

The comments are making for a good read. I also wonder how the social media influx has influenced the buying decisions of millenials. I see both bigger diamonds and minimalist jewelry "trending" on instagram and other social platforms. It could also be regional - is a 27 year old engaged in Georgia different than the 27 year old in Philly? Is a young professional couple in San Fransisco going to value the diamond differently than a traditional agricultural couple in Iowa - even if they had the same or similar financial resources?

 

[kb1gra]

I don't think buying a 2-4 carat ring and an expensive home (in California or in Boston) is going to be the reality for most millenials. Most of them are not laying out 100k on anything be it a ring or a house or a car or a plane. The $$ just doesn't exist.

Being the 1% of the millenial generation doesn't really permit applying one's own situation as a generalization. For everyone working at Google making buckets of money or in finance there's probably about 100,000 making $40k a year in an entry level job.

I have nice jewelry pieces but my replacement engagement ring is 0.46 ct. I couldn't care less. I prefer to blow vast sums of money on horses and their associated expenses versus a ring, a car, or an expensive house. That's me. Most millenials don't even have that choice and it's a small ring or they're never buying a house in this lifetime. That's the way life is going for most people my age (I'm under 30).

 

[bmfang]

My wife & I are in our early 30s (so on the border between Gen Y and the Millenials) here in Australia and we'd be considered upper middle class based on our incomes (not everyone our age is as fortunate as us with the jobs we have). Buying diamond jewellery (or watches in my case) at this stage of our lives is a relatively affordable luxury provided we don't go above AUD$10k every 3-4 years (and we never go into debt to buy jewellery or watches, we're both happy to layby purchases when possible or we make sure that we have enough cash in our account). We will likely never have the sort of funds like a lot of PS-ers to drop USD$20-30k on a ring or earrings (even though I really would like to get her a 1ct+ ring) as both of us would rather prioritise our mortgage, investments and living expenses over a giant rock. That plus my wife has said that too big a rock wouldn't suit her fingers or ears.

We've made sacrifices so that we can have a more than comfortable lifestyle (which includes discretionary jewellery purchases) by choosing not to purchase our first home in a more desirable suburb (keeping our mortgage costs down to about 10-15% of our monthly income rather than pushing it up to around 40-50% of our monthly income if we live closer to the city where we both work), by choosing not to splurge on imported European cars like some of our friends and acquaintances have, not eating out that much and cooking at home mainly and only having overseas travel for visiting our relatives rather than going on big European or Asian holidays when we feel like it.

She was hesitant about me even spending funds on her recent "push presents" (diamond ring and pair of martinis studs) though she was happy to receive them. Now that we have our first child with us, diamond shopping is out of the question as providing for his living expenses is our main priority (and given we are hoping to add another child to the family in a few years time), that is where we will be putting our funds to alongside mortgages and saving up for education costs. That plus we're down to a single income for the next 6-8 months. Maybe when our kids are more established and at uni or have flown out of the nest, we might consider more purchases, but I have a sneaking suspicion that both of us when we are at our parent's ages will just forego wearing jewellery in total (though I will still be wearing a watch and my wedding band).

 

[Bron357]

Hi, also from Australia. Here, house prices are off the graph and most 20 somethings will not be buying their own homes unless they get an inheritance. While jobs are fairly stable, education debts not too outrageous, and incomes reasonable, priorities seem to have changed. Buying jewellery for most comes after travel and eating out. More and more 20 and 30 year olds are still living with Mum and Dad. Some rather "the lifestyle perks", others just simply can't afford to live the way they'd like on their own. Most women will expect, and receive, a engagement ring but simpler and cheaper options including non diamond and diamond substitute. My teen daughter, and her friends are not at all interested in jewellery other than perhaps a pandora bracelet (ugh) and cheap costume jewellery earrings. While I remember begging for (and sometimes getting) jewellery for birthdays and Christmas my daughter prefers itune vouchers. I remember all us teen girls with a signet ring, a golf bangle (usually just gold lined) and a nice watch my daughters cohort don't even wear watches. I'm hoping she starts liking jewellery as otherwise I'll have to rehome my vast collection of watches and jewellery pieces.

 

[Resonance.Of.Life]

I don't think buying a 2-4 carat ring and an expensive home (in California or in Boston) is going to be the reality for most millenials. Most of them are not laying out 100k on anything be it a ring or a house or a car or a plane. The $$ just doesn't exist.

Being the 1% of the millenial generation doesn't really permit applying one's own situation as a generalization. For everyone working at Google making buckets of money or in finance there's probably about 100,000 making $40k a year in an entry level job.

I have nice jewelry pieces but my replacement engagement ring is 0.46 ct. I couldn't care less. I prefer to blow vast sums of money on horses and their associated expenses versus a ring, a car, or an expensive house. That's me. Most millenials don't even have that choice and it's a small ring or they're never buying a house in this lifetime. That's the way life is going for most people my age (I'm under 30).

Where did I apply this as a generalization ? I even said in my post that it just depends on priorities in how money is spent and saved. Some of out acquaintances are into designer anything and fancy cars and that's just how they prioritize their discretionary incomes. We are certainly not in the 1% . We saved and saved and live below our means even now. The vast majority of my "play money" is not spent on jewellery but on homeless dogs and their veterinary care. I don't care to have many pieces of jewellery but a few quality pieces.

 

[acebruin]

Where did I apply this as a generalization ? I even said in my post that it just depends on priorities in how money is spent and saved. Some of out acquaintances are into designer anything and fancy cars and that's just how they prioritize their discretionary incomes. We are certainly not in the 1% . We saved and saved and live below our means even now. The vast majority of my "play money" is not spent on jewellery but on homeless dogs and their veterinary care. I don't care to have many pieces of jewellery but a few quality pieces.

This! I agree. We all choose how to spend our discretionary income. Some of us like to buy a lot of designer purses. Some of us like to buy a lot of designer shoes. Some of us choose to drive fancy cars. I've told my wive many times before, I'd rather buy her blings than shoes nor purses. I could care less for cars. I drive an 11 year old Honda Civic and I will ride it to the ground. I don't drink. A lot of younger millennial spend quite a lot of money on going out with friends to a club and drink. I know several people who drop hundreds of dollars every week! That money can easily go into diamond funds. As for me, I like my blings and my vacations!