Engagement Rings - How Much To Spend?

How much should you spend on Engagement Rings?

How much should you spend on diamond engagement rings?

An old rule of thumb specifies “two months’ salary” as an appropriate amount to spend on a diamond engagement ring; however, serious consideration should really be given to your own personal budget. Work out how much you can afford and don’t be pressurised into blowing your budget or taking on a hefty loan to pay for the engagement ring. You don’t want the romance of the proposal to be killed by the stress of debt; your beloved is unlikely to thank you for this.

The carat size of your diamond is a major factor in its price: typically, the larger the carat weight, the more expensive the diamond. Keep in mind though that there are other important factors to consider about the quality of the diamond as measured by its cut, colour and clarity. As a budget guide, a round brilliant diamond, 0.5ct of high quality, could be a quarter of the price of a 1ct diamond of the same quality. The trick is to buy just under those brackets (i.e. 0.4ct or 0.9ct). You will get a very similar diamond but for a much cheaper price, potentially saving yourself thousands of dollars.

Diamond clarity refers to flaws in the diamond and the extent to which these can be seen by the naked eye. A flawless diamond is incredibly rare and significantly more expensive than a diamond with minor imperfections. The untrained eye will not be able to appreciate the flawlessness of such a diamond so the extra expense may not be warranted. A 0.5ct round brilliant diamond which has a clarity grade of VS2 (where you won’t be able to see any flaws with the naked eye) may cost up to $2000 more than one with a clarity grade of SI2 (has a few flaws and these will be visible to the naked, trained eye). A diamond in the VS2-SI2 clarity range will be exquisite and far more affordable than a flawless diamond.

In terms of the effect of diamond colour on price, colourless diamonds in the D-F grade are the most expensive. Again, the untrained eye without the aid of special lamps and master stones may not be able to appreciate the difference between these diamonds and diamonds in the G-H colour range. The price difference between a 0.5ct round brilliant diamond with a D colour and a 0.5ct with an H colour could be more than $1000. Buying in the G-H colour range could therefore be a great cost saving and you’ll still get a fabulous diamond.

The cut of your diamond will determine its “brilliance” or sparkle. A 0.5ct round brilliant diamond with an “excellent” cut may only cost $100 more than one with a “very good” cut and will give you much more sparkle. It is probably worth paying a little extra for a better cut to achieve a more stunning effect.

It’s important to take the time to research diamond engagement rings to ensure that you are getting a genuine, high quality ring that your fiancée will really love. Think of this as a once in a lifetime investment that deserves a great deal of careful consideration. Similarly once you have made your purchase, as with any other major investment or asset, contact your insurance provider and check that you have appropriate insurance cover in place for the ring.