I never consider the price of gifts when giving.
I think that both parties in a friendship should give gifts that they know the other person will love and get pleasure from.
I also think that wealthy people should use discretion when giving gifts to less wealthy people.
Even if I could afford it,I would never buy a considerably less wealthy friend diamond earrings,for example. How is she supposed to respond to that?
I like to spoil my student cousins by buying them something a bit more luxurious than they could afford themselves,but it is seldom something that screams "I earn way more money than you...here,have some!"
Nor do I expect friends who are truly wealthy to splurge on me. I may even find it a bit patronizing if they did.
Gifts are about generosity of spirit,and not about money.