A diamond ring typically loses a significant portion of its retail value immediately after purchase, often 30% to 50%, because of high retail markups and the shift from new to used jewelry, similar to a car driven off the lot. While you might recoup 20% to 60% of the original price on the second-hand market, this varies greatly; large, high-quality, certified stones have better resale potential, but most diamonds are not good investments, with lab-grown diamonds depreciating even faster.
The typical loss on reselling a diamond is between 25% and 50% of its original purchase price. Like the price of gold, diamonds' resale value can rise and fall depending on some circumstances. You can anticipate getting 25-50% less when you resell your diamond than you paid.
The "3-month ring rule" is an outdated marketing guideline suggesting spending the equivalent of three months' salary on an engagement ring, a concept created by De Beers to boost diamond sales, evolving from earlier one and two-month suggestions. Today, it's widely seen as a myth, with most couples prioritizing personal financial comfort, open communication, and meaningful choices over this arbitrary rule.
To sell a diamond ring for the most money in Australia, use specialist diamond buyers (in-person or online) or try consignment for unique pieces, focusing on the diamond's 4Cs (Cut, Color, Clarity, Carat) and brand, ideally with certification, to get a better price than a pawnbroker or general jeweller, ensuring a professional valuation and secure, fast payment.
And whilst selling gives you the entire cash value of an item, pawning diamonds and jewelry will only provide you with a fraction of its resell value. You can sell your items to a pawnbroker but they are not diamond specialists. As such, they do not have the expertise and knowledge to offer the best prices.
A diamond appropriate for 75% of a $20k engagement budget could range from 1 to 2.50 carats, or even higher, depending on the shape, and how it's graded in other areas. It may even be able to get you a diamond 3 carat or larger stone if you opt for a lab-grown diamond instead.
The 2-1-1 jewelry rule is a styling guideline for balanced accessories, generally meaning two pieces on the hands/wrists, one piece on the neck, and one piece on the ears, or variations focusing on visual weight distribution like two subtle pieces, one medium, and one statement for a cohesive look without clutter. It helps create intentional, effortless style by balancing different accessory types and placement, preventing the "Christmas Tree effect" (too much in one spot).
For a $5,000 budget, you can typically get a natural diamond engagement ring with a center stone around 0.75 to 1.0 carat, possibly slightly larger (up to 1.2 ct) in elongated shapes like pear or oval, depending on cut, color, clarity, and the setting's cost, with lab-grown options allowing for much larger (3-4+ carat) stones or alternatives like moissanite offering bigger stones within budget.
A 1-carat diamond in Australia generally costs between A$2,000 and A$20,000+, but can range from under $1,100 for lower-grade stones to over $18,000 for high-quality, well-cut diamonds, with the price heavily influenced by the "4 Cs": Cut, Colour, Clarity, and Carat, plus the diamond's shape and if it's natural or lab-grown (lab-grown being much cheaper). For example, you might find a lower-clarity, M-color oval for around $1,000, while a D-color, VVS1 princess cut could be over $11,000.
While the factors above all influence the resale price of an engagement ring, in general you can expect to get 20-45% of the original retail price. If you sell your ring to a jeweler, this number will be affected by their markup.
Jewelers report budgets anywhere from $3,000 to $25,000+. But plenty of beautiful rings exist in the $1,000-$4,000 range. Diamond alternatives make your money go further. A one-carat natural diamond averages $6,000, while a larger 2.5-carat lab-grown diamond engagement ring costs about $4,750.
One of the things I shared was my “3-Rings” rule. It goes like this: When your phone rings, and it's a potential client who's calling you, the first three rings are on the house. BUT — if someone doesn't pick it up by the end of the third one, each additional ring costs your firm $1,000.
Understanding Engagement Ring Costs
According to industry sources, people in the U.S. generally spend between $5,000 and $7,500 on a ring, but many couples spend less than $3,000 for their ring. Your choice can easily go above or below this range.
The resale value of a 1 carat diamond is usually between 20% and 60% of its original retail price. For instance: A $1,250 diamond would sell for $1,000 today but resell for ~$650 after a 35% discount. A quality-graded 1 carat diamond would sell for $1,036–$5,946 based on quality and sales medium.
The price of all diamonds, both rough and lab-grown, has plummeted in recent years. The price of a natural, one-carat diamond dropped 26% over the last three years. The drop is even bigger for their lab-grown equivalents: a one-carat factory-made diamond now costs much less than half what it did in 2022.
With a $10,000 budget, you can likely find a high-quality diamond between one and two carats. Remember, prices can vary based on individual diamond characteristics. Actual diamond carat weight, clarity, and ring cost vary.
Ten years ago, in 2003, a 2.00-carat Fancy Intense Yellow diamond with a VS+ clarity grade cost $5,000 per carat. Today, that same stones goes for $13,500 per carat.
Yes, $20,000 is a substantial amount for an engagement ring, placing it in the mid-to-high luxury range, well above the national average, allowing for a large, high-quality diamond or unique designer piece, but whether it's "a lot" depends on your personal finances, lifestyle, and partner's preferences, as it's a significant investment but offers great flexibility for a premium ring.
Size is subjective and varies depending on personal preference and budget (and even things like finger size, if you're looking at engagement rings!). However, diamonds of one carat and above are typically considered large.
Michelle Obama has two engagement rings: her original was a 1-carat round diamond, but in 2017, she received an upgrade to a larger, estimated 2.5 to 3-carat princess or cushion-cut diamond in a pave setting, with reports suggesting the new one is worth significantly more.
You can wear a divorce ring on any finger that feels right, but popular choices are the left ring finger (replacing the wedding ring for a symbolic fresh start) or the right ring finger (signifying independence and avoiding confusion). Other options include the middle finger or even as a necklace, as there are no strict rules—it's about personal meaning and comfort.
It's not that wearing jewelry is a sin or forbidden in the New Testament, but rather that outward appearance is not the focus of the Godly woman. That doesn't mean that she can never wear a womens gold cross necklace, however, to express our faith to others.
The "5 Outfit Rule" (or "5-Outfit Rule") is a smart shopping guideline: before buying a new item, you must be able to mentally style it into at least five different outfits using clothes you already own to ensure versatility, prevent clutter, and promote mindful consumption. It helps build a functional wardrobe by focusing on pieces that offer maximum wearability for various occasions, seasons, and styles, moving away from impulse buys that get worn only once.