A Bunch Of Finance Guys Are Whining About Buying Their Fiances Diamond Rings On An Online Message Board
The truly analytical nature of the participants in the forum approached the investment in a ring the same way they approach hedging a portfolio.
The way they see it, it's a necessity, but it's not necessarily the best use of their money given what happens to rings after they are purchased. They depreciate in value and they're not very liquid.
There's more than 150 responses on the thread. We've included some of our favorite responses below:
CorpFinanceGuy: If you plan on not getting your wife a diamond ring, all I can say is, good luck.
NickW1: I won't. I agree that the rarity of diamonds is misconceived; the big diamond companies control the supply that arrives at market, creating artificial scarcity. The reason why they're so expensive is mainly because these companies stockpile a bunch of diamonds and then sell them in low supply relative to the total amount of diamonds they have stockpiled.
TheBigBambino: I bought a very expensive designer ring (Ex. Graff / De Beers / Harry Winston) and it was perfect. Then 1 months later my fiance lost it. I had it appraised for 30% above cost and had it insured so boom - got all my money back and some. Ended up realizing there is little reason for going designer when doing the second ring and decided to get a custom one made with Jewish jeweler in NYC that was much higher quality (prob 25% more) for the same price due to no brand premium.
If anyone has Q's feel free to PM. I'd be happy to let you know the trade offs of each experience as well as the diamond specs I'd make sure to get. After 4 months negotiating with gemologists I've finally started to understand how the freaking market prices everything.
Best of luck to you boys. Remember - it's girl that's a much more important decision than the ring.
ishouldbstudying: You can't go wrong with a Neil Lane ring fit with a cubic zirconium (I think the Bachelor did a great job of making this designer appeal to every single women). It would only be 3-5k and in 5-10 years, assuming you're not making PE shop money now, you can upgrade to a real diamond.
TNA:...I would buy a ruby ring. I would give $30K in cash. I'd buy a gold bar for the woman. I am simply not going to waste money on something with zero value. Frankly, any woman who couldn't think rationally about it wouldn't be someone I would want to be with. I mean what's next? You'll need a massive home because her friends have one. Or is a BMQ a sign of love now?
Guys should do whatever they want, but don't make it out to be anything other than you giving into an obvious marketing campaign or not having the sack to say no to a woman.
Also kind of funny how simple gold bands were the standard for hundreds of years, but now marriage is so badass, especially with the 50% divorce rate, that it demands a massive rock.
Side note, no one is talking about a $5K ring. I mean if I ever did get married (bad mistake #1) I would happily buy a $5K ring. I would buy a $10k ring. Because who f------g cares. But we are talking about $20-30K rings here. 2-3 carats. Sorry, but I am not wasting a 3 series worth of cash for something with zero asset value.
JrTrader: As much as really expensive art or wine is also ridiculous, the rarity and uniqueness certainly plays a factor. Art/wine appreciates gradually over time too because of that unlike diamonds. When you buy a bottle of vintage wine you know it might be the last bottle of it's type in the world.
Labanker: Diamonds and gems are desirable because they are deemed to be prestigious. Fortunately this is changing. Those on the bleeding edge of elitism in certain areas are starting to eschew diamonds due to their association with conflicts, child exploitation, slave labor, etc. I could see a scenario not too far down the road where diamonds go the way of the fur coat -- once a coveted luxury item, but now unconscionable to actually purchase and wear.
Trade4size: Surprised the 3 month salary rule wasnt brought up more. Assuming ring is 3 months salary and you have 10% savings rate of which is all dedicated to the ring fund. It would take 2.5 years to save up enough. That is just insanity.
Alright now fellas, the reality is that you're probably not going to get away with this. So here are a few pointers for finding the right ring:
1. Find out more about her style. Presumably, you've been a relationship long enough where you have an inkling as to what kind of rings she wants.
2. No one said you have to buy her a gigantic Kim Kardashian-sized diamond. You can still find a decent-sized-ring.
3. You don't necessarily have to purchase a designer ring either. You can go to an independent jeweler. Also, family heirloom rings work too and they're really special.
4. If the budget is a major concern or you have ethical issues with diamond mining, you can always purchase a lab-made diamond. They have the same composition as real diamonds. Also, sapphires (or other gems) can make nice engagement rings, especially since that's what Kate Middleton got from Prince William.
Best of luck.