The Cost of Love in the Modern Age
An article featured in the Money Section of the online New York Times titled “With Engagement Rings, Love Meets Budget” that was published on January 31, 2014 raises some interesting points about the current cost of diamond engagement rings. The article focuses on a young couple, ages 24 and 28, who purchased a diamond engagement ring (of undisclosed quality) from diamond e-tailer Blue Nile for $6,250.00
The part which really stood out to me when I read the article is that the young man who bought the engagement ring bought it on credit, piling more debt on top of the $80,000 which he already has to pay back in student loans! The article explains that the couple decided to charge the purchase to his Upromise credit card because they get a 10% cash back rebate, which can then be applied towards his Sallie Mae student loans.
How much should you spend on an engagement ring?
According to the same article in the New York Times, a trade organization known as Jewelers of America, reports that couples paid an average cost of $4,000 for a diamond engagement ring in 2012, and paid an additional $1,000 for her wedding band, and another $500 for his wedding band.
A 2012 press release issued by the xogroup, reports that a poll they conducted indicates that their average reader paid $5,130.00 for a diamond engagement ring… so what does $4-5k buy in terms of a diamond these days?
The answer depends greatly on your preference for diamond cut quality, carat weight, color and clarity, because you could buy something exceptional like this 0.708 carat, G-color, VS-2 clarity, Brian Gavin Signature round ideal cut diamond, which exhibits a crisp and complete pattern of hearts and arrows as a result of being cut to an incredible level of optical symmetry… or you could buy a piece of frozen spit that weighs around a carat from your local maul store (yes, I realize that I spelled “mall” incorrectly, I digress…) but the term “frozen spit” is actually an industry term used to refer to diamonds which are so low in clarity that they look like frozen spit.
Such diamonds are also referred to within the diamond industry as “dead” or “promotional goods” which are used as lost leaders by stores who advertise them as “one carat diamond engagement rings for (like) $2,495.00” as an enticement to lure people into the store and then up-sell them to a higher quality diamond once they see what a one carat diamond for that price actually looks like…
The funny thing is that if you really want to buy a one carat diamond for that kind of price, you could actually find a nicer looking diamond online by searching through the “Everything Else” category provided on the Diamond Search Engine on the Brian Gavin web site, which enables our customers to access the industry database of diamonds listed for sale by other diamond cutters, and you would probably end up buying a nicer diamond than the one carat promo being offered by your local brick and mortar jewelry store.
For instance, I found this 1.03 carat, SI-2 clarity, M-color, round brilliant cut diamond, which is graded by the GIA with an overall cut grade of GIA Excellent for $2,846.00 and it at least has ideal cut proportions, with a total depth of 60.2% and a table diameter of 58% with a 34.5 degree crown angle that is offset by a pavilion angle of 40.8 degrees with a thin to medium, faceted girdle and no culet.
Personally I’d rather present my bride with the 0.708 carat, G-color, VS-2 clarity, Brian Gavin Signature round ideal cut diamond because it is going to be much brighter, whiter, and livelier than the option described above, but my point is that you could purchase a one carat diamond for less money if size was your primary concern… it’s all about massaging the characteristics of diamond grading to fit your preferences and budget.
And while I don’t recommend or condone buying a diamond engagement ring on credit when you’re already trying to balance $80k in student loans, that might just be the cost of love in the modern age… what are your thoughts on the subject?
