Month: January 2022

What does the average engagement ring cost?

In 2022 in the UK, the average price of an engagement ring costs £2100. This figure comes from an average of 100 recent engagement ring sales. 

Individual ring prices ranged from £600 to £10,000. But, as an average cost, the price works out to £2100. We base this figure on the total value divided by the number of sales.

Rounded down, the figure of £2000 aligns perfectly with the national average monthly salary of £1950 based one a single month’s earnings. 

We based the average cost of an engagement ring on our own data collected from engagement ring sales at Serendipity Diamonds. To outline an engagement ring average spend.

Just how much should you spend on the perfect engagement ring in the UK? 

How much should an engagement ring cost?

The question, “how long is a piece of string?” comes to mind in this particular instance.

Jewellers price engagement rings based on a number of different factors. Firstly, what they are made from? In other words, the cost of the materials.

A Platinum diamond engagement ring costs more than a 9-carat gold ring set with a semi-precious gem.

Next, the profit margin makes a huge difference. For example, some online jewellers add a tiny profit margin and rely on large volumes of sales.

Factors affecting engagement ring cost, listed in no particular order.

The precious metal of the ring. (Platinum, 18ct White Gold, Yellow Gold, Rose Gold, 9ct Gold etc.)

Gemstone type. (Diamond, Sapphire, Moissanite, Cubic Zirconia etc.)

Carat weight and the price point of diamonds.

Clarity.

Gemstone colour. Natural, or treated etc.

The cut and proportions of the gem. Especially important for diamonds.

Natural or lab-grown diamond.

The profit margin of the jeweller.

Whether or not the ring was made as a bespoke design, or off-the-shelf.

Exchange rate USD: GBP (particularly important as a factor for pricing diamonds.)

Precious metal price. (Over time, precious metal prices vary, going up or down depending on the economy).

Diamond shape. (Round brilliant-cut diamonds typically cost more than many other fancy shapes).

Ballerina design with Arreton wedding ring

Why do buyers want to know the average price of an engagement ring?

Essentially, knowing the average price of an engagement ring will provide you with some reassurance when looking at ring prices. Also, a benchmark figure on which to base your own budget.

How much to spend on your engagement ring?

Firstly, consider your own finances and financial situation. Remember, that while the average ring cost works out to around £2000, each sale swings wildly from around £600 to over £5000.

People with a higher budget typically earn more or have based their budget on the 3 month’s salary rule.

To summarise, no engagement ring should cost a specific price owing to the sheer number of variations available for any, one ring.

The following chart shows 100 of our most recent engagement ring sales starting from 2022 and the wide variation of prices. Notice how the majority of sales fall between £1000 – £2000.

Compare this chart to the first chart published in this article, taken from 50 x ring sales during 2020.

Additional factors affecting the cost of an engagement ring

Earlier, we considered several factors influencing the cost of an engagement ring. From 2022, we should consider rising inflation.

Inflation happens when the value of the currency falls. As a result, raw materials and finished goods appear more expensive.

During the Pandemic, the creation of money by the UK and US governments will severely reduce the value of the currency. Real money (specifically Gold) will eventually rise. As a result, the cost of an engagement ring is likely to increase greatly in the coming decade.

At the same time, the value of all existing Gold will rise significantly. The same can be said of most materials used to create jewellery including diamonds and gemstones.

Consider your financial situation before buying the ring

Before buying a ring, carefully consider your financial situation. Everyone’s financial position differs based on personal circumstances. Income, existing commitments and credit status all vary from one person to another. 

When it comes to financing, some buyers split their purchases using credit.

We recently introduced a new package from Klarna. UK clients can divide their payment into 3 instalments. Or, pay later within 30 days.

Finally, we have 3 choices of 0% finance, subject to acceptance.

Are big jewellery brands best on price?

Well-known jewellers benefit from greater visibility compared to smaller jewellers. Most shoppers know jewellers such as H Samuel. Founded in 1862 the company enjoys a legacy of High Street presence.

The same can be said for Goldsmiths, Ernest Jones, Beaverbrooks, and Fraser Hart. These are popular brand names of UK jewellery shops. But do they offer such great value?

Comparing independent jewellers

By comparison, many small independent jewellers give a high level of customer service. In addition, their expertise, client care and choice make them a good alternative. 

Furthermore, many open up their catalogues and prices online. This leads to some interesting comparisons, seen below.

For anyone willing to explore further afield, many specialist jewellery stores sell online. Fortunately, we provide clients with both an online experience in addition to showroom facilities.

Surprisingly, a great difference exists in what’s on offer based on the average ring cost.

How many month’s salary – Tradition and how much you should spend on an engagement ring

The jewellery and diamond company De Beers created the first rule-of-thumb in the 1930s. Their guide set a benchmark on how much to spend on an engagement ring.

The ‘One Month’s Salary’ rule for buying an engagement ring

De Beers suggested spending one month’s salary on a diamond engagement ring. Later, by the 1980s this suggestion increased to two months’ salary. 

Later still, in Japan, buyers were urged to spend a figure based on three months salary.

As a result, there was a great deal of confusion for buyers. Buyers face the dilemma of whether to spend one or three months salary on the ring. 

This is sometimes called the DeBeers myth. In the real world, this guidance serves no true purpose for many buyers. 

The average engagement ring price at Serendipity Diamonds

We looked at the last 100 x sales of engagement rings at Serendipity Diamonds. The cost of an engagement ring ranged from £600 to £10,000

Across the many sales, designs varied considerably. For example, some were regular designs.

Other rings came out of our bespoke design service. At one end of the scale, affordable gemstone rings. At the other end, a 2 or 3 carat and 4-carat diamond ring.

From our chart (see above) you can work out how much to spend on an engagement ring based on popular choices.

Serendipity Diamonds – independent engagement ring specialist 

Do chain jewellery stores offer the best value engagement ring?

Chain stores do not tend to offer the best value for money. In our experience, large multiple jewellery stores do not offer the best value. 

In contrast, smaller independent jewellers, create individually crafted rings rather than mass-produced designs.

Also, they offer a greater range of ring styles with a wider selection of designs available.

High Street jewellers often stock mass-produced rings instead of individual designs.

In addition, many stores buy low-grade diamond rings cheaply produced, but sold at very high margins.

Some jewellers work on a margin of 300% – 400% over their own cost price. 

We compared our own £2000 rings to other well-known jewellery stores.

With this in mind, we took 5 well-known jewellery stores—all with an online presence. We looked at a solitaire ring choice with a price tag of £2000.

Then we simply compared this to our own selection.

The scope of our research spanned UK retailers. We left out jewellers without physical stores. For example, Blue Nile or James Allen.

As a result, we found the following, based on an average price of around £2000

1. Serendipity Diamonds

View designs and browse engagement ring prices

Firstly, the team at Serendipity Diamonds, create each engagement ring individually to order. Clients can choose from a very wide variety of ring styles—all individually crafted to order.

What engagement ring can you buy for £2000 at Serendipity Diamonds?

Platinum solitaire ring, set with a 0.40 carat diamond graded G colour and VS1 clarity. A greater carat weight colour and clarity of diamond.

This example included a very good cut grade. Lifetime warranty and free size adjustment. Also, Free delivery with exceptional presentation. 

Or, why not talk to us about one of our latest addition—lab-grown diamonds. (See below for an example based on the same cost).

Exceptional value for money

We offered very good value, based on the price of a single-stone ring, set with a lab-graded 5mm diamond. (Graded G colour and VS1 clarity).

In addition, buyers enjoy the reassurance of a very good cut. Finally, excellent build quality with solid, well-made mountings.

Other benefits included 60 days returns, a free size adjustment and incredible packaging.

Incentives included 12 months 0% interest-free credit available subject to application.

Finally, free shipping on all orders with click and collect or direct ordering from the showroom.

Why 5 stars? – We give 5 stars owing to an all-round service at a good price. Helpful guidance, friendly support, detailed information, packaging and add-ons make this the best value. 

The following video shows the diamond size and quality based on the 0.40 carat G VS1 example in the Twist design.

Typically, this demonstrates an example of the average engagement ring cost.

2. Goldsmiths

What engagement ring can you buy for £2000 at Goldsmiths?

0.33 carat diamond. Platinum ring. G colour SI1 clarity.

3. H. Samuel

What does £2000 get you for an engagement ring at H Samuel?

0.33 carat diamond. Platinum ring. G colour SI1 clarity for £2300.

4. Beaverbrooks

What does £2000 get you for an engagement ring at Beaverbrooks?

0.24ct diamond ring in Platinum, graded G colour and SI1 clarity for over £2000.00.

5. Ernest Jones

What does £2000 get you for an engagement ring at Ernest Jones?

For £2000 you can buy a diamond of 0.33cts.  H colour and I1 clarity, a lower grade than both Beaverbrooks, Goldsmiths and H. Samuel.

Why only 2 stars? – Unfortunately, the clarity offered by Ernest Jones fell below all other retailers we sampled.

Next steps when buying your ring

Once you have a clear idea of the budget, consider your engagement ring design. In general, most clients feel forced into paying what others feel they should spend. For a moment, put aside how much to spend on an engagement ring. 

Look at the designs available and consider which style you prefer. In addition, consider all of the design elements including the shank, setting and shoulders. 

At Serendipity Diamonds, our small and friendly team work with more than 30 years of engagement ring knowledge. Most importantly, we give great advice on every aspect of buying a ring. For example, we advise on the best choice of precious metal for the ring. 

In addition, how to choose a diamond for whiteness and clarity without spending too much. During any meeting, we advise on the various characteristics known as the 4 C’s of diamond grading. 

Handcrafted rings

We handcraft most rings, tailored by diamond size to fit the average engagement ring cost. For this reason, we offer most designs with several thousand price options! As a result, we offer the complete package. From expert guidance to individually crafted engagement rings.

Finally, we offer exceptional packaging and after-sales care from our lovely team.

In addition, consider the following benefits for all diamond engagement rings purchased at Serendipity Diamonds.

Firstly, we give expert advice and guidance to all clients without obligation. 

In addition, clients enjoy free delivery.

Also, a GIA diamond report with a minimum very good cut grade. 

Next, we provide a lifetime warranty on all workmanship and materials.

Together with 0% interest-free finance on engagement rings. Subject to conditions.

Also, a Free insurance valuation.

60 days returns 

And finally, beautiful packaging with 2 ring boxes (one slimline for proposal)

Your only concern should be how to propose.

Lastly, we accept most Worldwide currencies. Also, our showroom opens daily for clients from Monday to Saturday. Clients can request an appointment for a more in-depth visit during opening hours.

Photos from our engagement ring archives.

The following gallery shows some of our previous work. To illustrate this, most of our engagement rings appear on our website pages. Or, visit our Facebook page to see some of our latest designs. Our website products include pricing to help you decide how much to spend on an engagement ring.

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The post The Average Price of an Engagement Ring in 2022. appeared first on Serendipity Diamonds Blog.