When it comes to purchasing a “special gift” for a loved one, many different items instantly come to mind. If the occasion involves the words “Congratulations on your engagement!” a soon-to-be groom has a lot of work to do. This statement is usually followed by the newly engaged lady showing off her lustrous diamond ring. It seems that over the years, young males who are entering the stage of marriage spend large amounts of time and energy looking for that perfect diamond ring for their special significant other. However, this tradition also comes with a pretty hefty price tag!
Today, over 80 percent of American women receive diamond rings as a symbol of their engagement. It has also been rumored that males are expected to save up approximately 10 paychecks in order to afford that diamond ring! That is certainly a large stack of cash! While preparing for their engagements, males spend their hard earned savings on a diamond ring which in actuality, is just a small piece of rock.
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For most Americans, it seems to be that the bigger the diamond, the more you are loved. Instead of the engagement process representing the commitment and love between two people, it became more about the size of the diamond and the dollar sign attached. Society has definitely altered the dynamic of this critical part of marriage which has now become a status symbol and a measure of "manhood." You may ask when and how this whole tradition began. Well, it actually got started back in the 1940s, when a group of wealthy young men convinced all of America that purchasing a pricy engagement ring is an essential part of marriage! Sure, that shiny rock may look gorgeous as it glistens in the light, and it is sure to turn a few heads while you are flaunting it down the street, but is it really worth the investment?
The answer is absolutely NOT. A diamond ring is actually a depreciating asset disguising itself as a future investment. But what is the logic behind all of this? Well, you have to take into consideration that when a diamond ring is purchased, it is being sold at a retail price, which is marked up anywhere from 100-200%. So, as soon as you leave the store with that diamond ring, it already has lost about 50% of its value, no matter what the sales person tells you! Now, let's say that you decide to re-sell the ring you just bought. Automatically, you would have to sell it for LESS than wholesale, which is a major loss of capital on your part. For example, a one carat round cut diamond ring with decent color and clarity may sell at a retail jewelry store for approximately $3,000. If you decide to sell this ring at any time, you will be lucky if you get back $800. Right there, you just lost a prodigious amount of money! Moreover, it gets even more complex because there are diamond necklaces, earrings, bracelets, and even tiaras.
Credit: Wikimedia Commons
Purchasing a diamond is just not a wise investment! There are plenty of other less expensive alternatives to show your commitment and love while getting engaged. Basically, diamonds are a luxury, and are a good choice for those who have extra cash laying around. If you are looking to make an investment in the future, then put your money elsewhere, because diamonds are simply a waste of your hard earned money.
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