What is the average cost of an engagement ring?
With an increase in engagements during Corona times, we’ve seen people invest more time and effort in planning a special proposal for their significant other. A common question then arises. What is the average cost of an engagement ring?
We’ve scoured the industry for the answer and we can confirm…
With this information to hand, you won’t have to go wracking your brain to figure out the answer to ‘how much should I spend on an engagement ring?’.
With £2022 being the average cost of an engagement ring in the UK, we also found that our friends across the pond are a lot more financially invested when it comes to diamond engagement rings, spending almost double what we in the UK spend. In the United States, they spend an average of almost £4000 on engagement rings for their loved ones.
This doesn’t mean that we Brits should be accused of skimping on our loved ones. No siree. There is a huge diamond market in North America, and with it, much larger availability of diamonds, thereby bringing more competitive prices. This in turn can drive consumers to spend more on their diamonds as they are getting what they believe is a bigger and better diamond.
There is a range of core factors that influence the average cost of an engagement ring.
The raw cost of diamonds
Corona was the major player when it came to the impact on the price of diamonds in 2020. According to a 2020 report of the diamond industry by Bain & Company, we saw a fall in the price of both rough and polished diamonds by 11% and 3%. Whereas the prices of high-quality diamonds also fell, they began to bounce back towards the end of 2020.
2020 was another year where the costs for rough and polished diamonds continued to lose value. Since 2018, rough and polished diamonds began on a downward trend, with decreases of 7% and 4% in 2019 and as we mentioned, a further 11% and 3% in 2020.
Corona forced mining companies to pause operations, while smaller companies who would be severely impacted by a prolonged period of inactivity opted to generate cash flow by selling their diamonds, even during the periods where their value had dropped by a huge 25-30%.
The cost of metals used to craft diamond engagement rings
The most common metals used for diamond engagement rings are traditionally made of gold, in white, yellow or rose; and silver metals such as titanium, tungsten, steel and platinum.
While platinum rings were less commonly purchased due to their rarity and higher cost, in 2020, Corona flipped the tables and upset the metal market. In times of crisis, investors always turn to gold, a common and trusted property always liable to hold its value. In short, a safe bet in uncertain times. In fact, the price of yellow gold actually increased 24% in 2020 as more people purchased gold, driving up the value.
What this meant was that 2020 was the year when platinum-based diamond engagement rings actually became an option for more ring buyers as platinum was overtaken by gold in market value. This meant that it was actually less expensive to purchase a platinum ring instead of gold.
Diamond engagement rings crafted in Platinum have always been sold at premium prices as platinum is a precious metal, less commonly mined than gold. Those without deep pockets would focus more on the quality of the diamond stone and opt for white gold if they wanted a silver-coloured ring
With Corona somewhat abetting in 2021, predictions are backing gold to gradually stabilize in value with silver and platinum expected to outperform gold, bringing the metal market back to its traditional equilibrium.
The 4 C’s
Colour, Clarity, Cut and Carat. We hope you will already be well versed in the basic ins and outs of diamond ring buying. If not – take a look at the David Ashley diamond education pages to get yourselves up to scratch!
Carat: A carat is the measure of a diamond’s weight. So automatically many would presume that a heavier stone would mean a more beautiful diamond. If only it was that simple! A heavier stone could mean a trade-off from one of the remaining 4 C’s. This is why David Ashley always looks for a diamond’s lustre – our own recipe – combining the 4 C’s and other elements to ensure that you will purchase only the most stunning engagement ring possible.
Colour: The colour of a diamond is scaled according to a chart ranging from ‘colourless’ to a slightly yellowish tint. The less colour – the rarer the diamond and the higher its value. The experts at David Ashley are always on hand to assist you in picking the perfect coloured diamond.
The scale ranges from D to Z. With D being considered ‘colourless’ down to Z, considered ‘Light’. See our official GIA colour scale below.
- D E F (Colourless)
- G H I J (Near Colourless)
- K L M (Faint)
- N O P Q R (Very Light)
- S T U V W X Y Z (Light).
Cut: Perhaps the most crucial and delicate task, the cut of the diamond will determine how much it will sparkle and reflect off light. An expert cut will bring out the maximum potential of the diamond. The outcome of the cut is a result of the polish, symmetry and precision. David Ashley works with only the finest diamond craftsman to ensure that your diamond ring sparkles to the max.
Clarity: Clarity is the way we can measure the purity and rarity of a diamond. By looking at the diamond under an extremely powerful magnification, we are able to notice whether the stone demonstrates any signs of inclusions (the term for internal flaws of a diamond) or blemishes on the outer surface of the diamond. Diamond clarity is also graded according to a scale – so the more flawless a diamond, the more expensive it will be.
To sum up, with the average price of a diamond engagement ring in 2021 being £2022, you now have a benchmark for what people are spending on engagement rings in the UK.
That said, there are really no hard or first rules on how much you need to spend on an engagement ring. At David Ashley we can help you find the most beautiful diamond engagement rings which meet our quality diamond lustre standard for all kinds of budgets.
Do you already know the diamond engagement ring you want? Take a look at our selection of stunning and exclusive diamond rings available at David Ashley today!
If you prefer to carry out some of your own research on diamond engagement rings, take a look at the David Ashley diamond education pages where our diamond experts breakdown the diamond engagement ring industry into easy to understand language, leaving you better informed to make a decision on the perfect diamond engagement ring to buy for your loved one.
And remember, with years of expert experience in the diamond industry, we are standing ready at your service! Contact us at David Ashley today and we’ll guide you through the process and help you find the perfect diamond engagement ring.
