How much should I pay for an engagement ring?
“All right, I realize that you’re in the business of selling diamonds, and as such you might be a bit biased, but can you tell me how much I should pay for an engagement ring? Here’s the deal, I was just about to click order and buy this 1.662 carat, F-color, VVS-1 clarity, BGD Signature cushion cut diamond, when one of my co-workers pointed out that I was about to drop more than $25K on a rock (!) and that got me thinking about whether other guys spend this kind of money, or did I just drive myself up into this price range by obsessing over diamond quality? Do I really need the higher clarity and color, or can I get away with something slightly lower? I mean this stone is perfect, but…”
Is $25k a lot to spend on a diamond ring?
Believe it or not, while $25k might seem like a lot to spend on a diamond engagement ring, we sell quite a lot of diamonds in this price range throughout the course of the average year… but according to the American Express Spending & Savings Tracker, the average amount spent on an engagement ring in 2013 was only $2,410.00* which jumped up to $5,658.00 for the group designated as being “affluent” by American Express.
Therefore it is reasonable to conclude that $25k is a lot to spend on a diamond engagement ring, but this really is a matter of perspective, and our perspective tends to be influenced by our peer group, which is why some jewelers recommend spending two months’ salary on an engagement ring, and recently we’ve even heard that the “two months salary rule” has been upgraded to a “three months salary rule”… the question of course is whether that is two months gross or net salary. WOW.
How much should you spend on an e-ring:
Obviously nobody has the right to tell you how much you should spend on an engagement ring, it is a matter of personal finance, which by their very nature are, well, personal…
My advice is to spend whatever amount on a diamond engagement ring that you are comfortable with, whether that amount of money seems reasonable to your family, friends, and co-workers is kind of irrelevant.
But if you’re looking for ways to save money buying a diamond engagement ring, I’ll tell you that this 1.715 carat, G-color, VS-1 clarity, Brian Gavin Signature Cushion cut diamond looks just as amazing as the 1.662 carat, F-color, VVS-1 clarity, BGD Signature cushion cut diamond that you have your sights set on, and it costs about $5k less.
Both diamonds are going to face up bright and white, and look perfectly eye clean to the naked eye, the only real difference that you are likely to see is through a diamond grading loupe, and the reality is that we don’t live under the scrutiny of high powered magnification. Most people would be hard pressed to distinguish between F-G color diamonds under normal lighting conditions, especially when the diamonds are mounted… so if you’re looking to drop down a few thousand dollars, dropping down a clarity and color grade can be a great way to do so.
*Source: American Express Spending & Savings Tracker, Valentine’s Day 2013 report, page 4
