Engagement Ring Is Not Just a Commitment of Love, but an Investment

Engagement Ring Is Not Just a Commitment of Love, but an Investment

A Diamond Engagement Ring for your sweetheart could be not just a symbol of love and forever commitment, however, it can be a smart investment, becoming a valuable and significant part of Heirloom property. Passing through generations it will symbolize the traditions and culture of your family, deriving from the strong and meaningful unit of your ancestors. Find further how it will become the token of your family and which Rules you should comply with, buying such a type of Ring.

If you’re thinking of popping the big question, then you’ve probably thought about getting a diamond ring. Getting an engagement ring  for the love of your life is more of an emotional response, seeing it as a long-term investment can also make it a rational decision. In this article, we would like to show how an engagement ring can be not  just a sign of one’s love, but also a smart investment.

Whether it’s worth just a few hundred or a few thousands of dollars, getting a diamond ring will be never considered as wasting of money. Other than a diamond ring having symbolic value, it can be a smart investment, which you even will not suggest about earlier. 

A diamond ring might be a small piece of jewelry, but it does have value. In other words, even the smallest diamond you can find is going to cost you a few hundred dollars. So, the question there becomes, “Might your contribution in a diamond engagement ring have tangible value that will appreciate in time and could be valuable for the future generations?”

One of the existing myths is that ring has the amortization value and like a new car, as in, its value drops once it is driven off the lot, and further depreciates over time. While there is some truth in this myth when it comes to buying a new car, buying a diamond engagement ring is a lot different. That said, every jewelry retailer does have a profit margin that they must maintain, so it is normal for the wholesale value of it to be lower as compared to its value in retail stores.

When it comes to make a deal the place where you buy a ring plays a huge part in its markup. For instance, purchasing ring from an online store can easily get you more bang for your buck since online jewelers do not have to deal with the expenses of maintaining a brick-and-mortar store.

Since online jewelry retailers operate on a rather slim profit margin, which is normally around 10%, they have a lot more room for discounts, which is exactly what young investors should look for while buying such type of ring. Online jewelry retailers are also a great option for those who look at purchasing it as an investment because you are less likely to find bargains at the big-name brands, who use their prestigious brand name to bump up the price of their jewelry, which also includes their diamond engagement rings.

Investing in an Family Ring

Another smart way of investing is by purchase it with a goal to become family’s property namely estate ring. Few people know this, but an “estate” ring simply implies that the particular piece of jewelry was pre-owned. While this fact might make some folks uncomfortable, it is a great way of investing in top-shelf jewelry without having to pay an arm and a leg. 

Those who are not comfortable with the idea of investing in an estate ring, need to look at it this way, it becomes more like a family heirloom, as in, it is precious and unique. Heirloom jewelry is rarely scrapped or end up in a melting pot. The great news is that there are plenty of investment options for those who are searching for top-shelf rings online. These family rings are also available at reasonable prices as compared to the fancy price tags of new engagement rings in retail stores. The significant feature of estate ring, - it has a fabrication cost, otherwise known as a “sunk cost.” 

What this means is that the piece of estate jewelry, in this case, an engagement ring was designed so long ago that nobody is trying to make a profit off it. This lack of markup can allow you to get a better diamond ring at a significantly lower cost.

Buying Rules

While acquiring an engagement ring as not just a symbol of your love but also as an investment is a smart thing to do, there are certain rules on investing that you need to follow. For instance, always avoid a diamond ring that’s set with a modern-cut white diamond. While this might not make sense to some people at first, but white diamonds are far too common for them to appreciate at a level that you would like over time.

In order for your investment to be a reliable one, you will have to choose one that’s at least a bit unique. You can easily do that by using a diamond evaluation chart to find out the main properties of the diamond before you buy it. That said, if you make the right choice, an exceptionally cut diamond ring can prove to be a valuable investment.

There is a possibility also go for antique diamond rings that feature old mine cut diamonds or old European cut diamonds that are always worth investing in. A good example of these European cut diamonds which were popular before World War II is the cushion-shaped old mine cut diamonds and other old European cut diamonds which were more round in shape. Investing in antique diamonds makes for a great investment mainly because they have deeper proportions as compared to modern cut diamonds, which alone significantly enhances their value. That said, these diamonds will usually come with a cost, but will make a good investment option in the long run.

At the end of the day, there is no reason why the value of a carefully selected rings models would depreciate with time, just as it’s the case with investing in gold or real estate. It is always going to have value, mainly because a finely cut is a work of art, and the value of great works of art can easily appreciate over time.

Related posts