% of salary - what's a reasonable amount to spend on engagement ring?

TPF may earn a commission from merchant affiliate
links, including eBay, Amazon, and others

#107
miss alice said:
^^ I am a bit hesitant to respond b/c i dont want to come off like i am in any way an expert..bc i am not at all! i do not have any detailed research to back up what i say, and all i offer is personal experience.

with that said, i know for a fact that if you want to RE SELL a 2.5 carat (G colored, VVS, Ideal cut ROUND) solitaire, you can make about 30% MORE than what you paid for about 5 years ago. I know this for a fact b/c one of my closest girlfriend did this @ the diamond district in NYC (by Rockefeller Center). If anyone wants the actual store name, I can provide that too..just PM me..lol..I actually accompanied her during my lunch break b/c she didnt want to be alone.

Therefore, I do not think diamond appreciating in price is a myth at all, because I witnessed it. Granted, her diamond was EXCELLENT (color, cut, clarity, everything).
Click to expand...

Miss Alice - your friend got a fantastic deal - kudos to her! However, I think her experience was an aberration. Or perhaps she got a super deal when she bought her diamond.

We took my mom's jewelry to a couple of jewelers in Florida, and a couple in Boston. Our first round we just asked for appraisals, not specifying what they were for. The appraised values we got were much higher than when we specified that the appraisals were for resale. These diamonds were a little higher quality than what your friend had, but still normal jewelry type diamonds (not investment quality by any means). When we sold them, we got right around what the resale appraisals said we'd get.

I had this type conversation with a friend of mine who felt that her diamonds held their value (though didn't increase). Turns out she'd been trading up a couple of diamond rings and studs to bigger sizes each time, and that the jeweler was trading in her old diamonds toward the purchase of new diamonds. But when she tried to sell a diamond ring (no trade-up), she was very unpleasantly surprised at what she was offered for it!

Another thing to consider is that as time goes by, the dollar (or whatever currency is being used) is worth less and less in terms of buy power. So if you buy a diamond for $10,000 and sell it 20 years later for $13,000, you haven't really 'made' $3,000.

What I'm trying to say is that it may be a mistake to think that the diamonds we buy are a financial investment. The joy we'll get from them will be more emotional, the pride of wearing them, enjoying them, and then passing them along to our heirs. And if by chance we can make a little money from them, great!!
 
#109
^that's awesome. . . wish my Mom thought of that!:push:
Leaving some important heirlooms behind to my kids has become very important to me. Maybe because I know my praent's never thought of it and now that I'm a parent I know how importnat it is for us kids to have some special pieces to hold onto when our parents are gone eventually.
 
#110
^^^^

Yes I feel like that also Swanky.

I wasn't happy about leaving my engagement ring to my daughter as there was so much heartbreak attached to the marriage. I went back to where it was purchased, he gave me a fabulous price for it, more than was paid & I exchanged for a beautiful ring which I am now very happy about my daughter having after I am gone.

Regarding what you spend on a ring, I say whatever, you can comfortably afford.
 
#111
i think 2 months is good enough, although Dh spent 3 months on my e-ring. I think alot of ppl get too carried away fantasizing of a huge e-ring rather than focusing on what's more important - the marriage. You can spend 2 months for the e-ring, and then start a little savings fund for a bigger ring for your 10 year, 20 year, 30, 40 year annie.
 
#112
I always thought that whole "two months salary" was a marketing ploy, too. I think that it's not really the size or the price of the ring, but it's the thought behind it. A ring is nice, but it's just a symbol of so much more, and it's what's BEHIND the ring that really counts. When my BF proposed he gave me a gorgeous, MODEST ring. He told me that if I didn't like it I could take it back and exchange it for something else, but I told him I'd NEVER do that. This is the ring that he picked out and wanted me to have, and because it's such a personal and intimate gift, I'm keeping it! It's a gift from him, and if I get something different it will no longer be a gift from him. Additionally, I know that he didn't spend two months of salary on it, and I 100% don't care!
 
#113
my bf didnt spend a 2 month salary as well. that is just too extravagant for me because i know his 2 months salary and i know we can totally travel with that money or spurce up our apartment with that money.

my bf spent about 1 month's full salary (w/o tax) and I got a 1 carat stone with great GIA specs and cut advisor specs so I am happy. :D
 
#114
My ring was less then one month's salary, its a simple classic Tiffany 1 ct. I thought about going bigger, but decided instead that I'd rather just accent the ring with other diamonds....and my fiance has already bought me a necklace to go with it. We're in a different position maybe because he has lots of savings for a house, we're just not buying in this market. He's also from a conservative background and I think he's getting used to the money he's making. Lately he's been spending more and more comfortable with it. So its a personal choice, don't get caught up in someone else's rule or what your friends have. Think about your bigger goals.
 
#115
barcreperie said:
What I've always been curious about is - what happens to these traded in diamonds? Are they polished up and sold as new???
Click to expand...

The answer is a definate yes!!!! Diamonds are one commodity that are not considered `second hand` after having one or one hundred owners!!!!! Trade ups would not be possible if the system worked any other way. This is discussed frankly and openly on Pricescope where I also asked this question. Apparently it is no big deal according to the experts!!!

For me it means that the stigma of buying second hand diamonds should be abandoned because chances are we are wearing somebodies trade in anyway!!!!!!
 
#116
My guy didn't do the % of salary since he sees it as a marketing ploy.

Before we got engaged, he was very consumed with a project that lasted for months... We were living together then but work kept his focus and attention. After it finished, he was given a generous bonus. He used his bonus to pay for my ring in cash. So all the ups and downs we endured as a couple during that crazy period is now on my finger. He jokes that the ring was paid with 6 months worth of sweat, stress and sacrifice.
 
#118
^ Thanks MissD! He's really sweet when he wants to be. LoL

My guy surprised me w/ a 2+ct Princess + .80 Trillions in Platinum. He admitted he was nervous about spending his bonus moolah on a piece of jewelry but when he saw the ring, he knew that it was it.

Funny enough, after the project was completed, two more from his team also got engaged... Three different couples newly engaged in a span of 3 weeks!
 
#120
hi intlset!

i'm located in chicago as well and am currently shopping for an engagement ring with my SO. well, actually it's me doing most of the research since everything "looks the same to him";). our budget is just around the 3 months salary mark. there is a GREAT diamond education forum that provides extensive information on what to look for so you can get the best bang for your buck. sorry if someone else has mentioned it already as i haven't had time to look through the whole thread, but it's www.pricescope.com.
 
You must log in or register to reply here.
Top