Buying an Engagement Ring on a Budget During the Cost of Living Crisis

With the cost of living soaring and inflation looming, Brits are more concerned than ever with how and where we're spending our money. It is reported that a number of couples sold their wedding rings to cover basic costs.

Proposing and getting engaged remains a milestone moment in most couples' trajectories, regardless of what’s happening in the economy. So while we’re all tightening our purse strings, how can you save money on your engagement ring? London jewellers Queensmith reveal the secrets that could save you thousands – without compromising on the beauty or the size of your engagement ring.

The answer to this is two-fold: yes and no. Like many materials and commodities, natural diamonds and metal prices are in constant fluctuation, and have been on a general upward trend over the past few years – catalysed recently by Russia's invasion of Ukraine. That said, the jewellery industry has been massively disrupted in the same time period by a lower-cost alternative to natural diamonds: lab diamonds.

The diamond and jewellery experts at Queensmith haven't necessarily seen people's budgets decrease due to the cost of living, with budgets starting around £1,400 and averaging closer to £4,500. What is noticeable is the strong desire from clients to get the very best for their money to make sure it is a worthwhile purchase. Engagement ring buyers are hunting around to find the very best engagement ring jewellers with top-quality crafting and impeccable customer care. More notably, they're looking for the biggest and best quality diamonds for their budget – made entirely possible by lab grown diamonds.

Russia’s invasion of Ukraine had a direct impact on the cost of natural diamonds. Russian mining giant Alrosa was once responsible for around 30% of the world’s mined diamond supply. Jewellers like Queensmith decided in early March 2022 for a self-imposed ban on buying and selling diamonds knowingly mined by Alrosa, who is backed by the Russian Federation. It wasn’t long before America imposed a sanction on the company, drastically reducing the global supply chain of natural diamonds. So, just like natural commodities like oil, mined diamonds have shot up in price due to their scarcity.

Lab diamonds cost significantly less than identical natural diamonds, usually between 60% to 80%. This is because the time and cost of producing a lab diamond are far less than that of mining natural diamonds.

In a 2021 survey conducted by Queensmith, we found that 88% of participants said they’d actually prefer a lab diamond engagement ring. Around 2 in 3 engagement rings ordered with Queensmith now feature lab diamonds - a figure that was as low as 1% in 2019. If you want to have a deeper look on the differences between natural diamonds and lab diamonds, explore our guide.

Diamond engagement rings can range in price from around £1,400 to several thousand, tens of thousands and beyond. The good news is that there are a number of ways to save for an engagement ring on a budget, without compromising on its beauty or quality.

1. Avoid flawless diamonds

There’s no need to buy a flawless diamond, or even a near-flawless diamond. The closer to flawless a diamond is, the rarer and more valuable it is - but the truth is, you don’t need to splurge your budget on finding a diamond without inclusions. You won’t be able to see the small, internal marks within a diamond graded between VS1 and SI1 without magnification, so this is a great grade to compromise on.

2. Lower the colour grade – just a little

A high diamond colour grade, between D to F, will appear bright and icy, but you can lower the grade a little to G or H – particularly if you’re choosing a yellow gold or rose gold ring, because these will absorb the warmth in the diamond. We don't usually advise looking lower than H colour diamonds, but some people don't mind subtle colour traces.

3. Don't compromise on top-cut grades

You should look at diamonds with really great cuts, symmetry and polish grades. They may cost a little more, but it's totally worth spending here. Poorly cut diamonds are lacklustre and can appear dull or cloudy – so for serious sparkle, look at Ideal or Excellent cut diamonds.

4. Avoid round diamonds

They’re beautiful, but round diamonds are the most expensive shape by about 20%! This is due to their high demand and the fact that more diamonds are wasted during the cutting process than any other shape. Since the increase in the cost of living, jewellers have seen alternative shapes soar in popularity, like oval diamond engagement rings

5. Choose an elongated diamond shape

Diamond shapes like ovals, pears or marquise appear larger than other shapes of the same carat weight, and offer great finger coverage. Elongated diamond shapes have an increased spread of carat weight, so they appear bigger than more compact shapes like round, cushion or princess diamonds, making them feel like better value for money.

6. Find an 'underweight' diamond

See if you can find a diamond just shy of the carat mark – they're hard to find but can make you great savings. Diamond prices jump at the carat – a 0.99 carat diamond will cost less than a 1 carat diamond, but the difference in size will be negligible. The same applies to diamonds just under 2 carat, 3 carat and so on. You may even notice big price differences between, say, a 1.49 carat diamond and a 1.50 carat diamond. Read our Engagement ring carat size guide.

7. Save thousands with a lab grown diamond

The best way to save significant savings is choosing a lab grown diamond. Compare an identical natural and lab diamond, and you can notice hundreds, if not thousands, between the prices. A top quality 1 carat natural diamond is likely to cost you upwards of £10,000 – you'd be looking at a little under £2,000 for an identical diamond that's been grown in a laboratory (accurate at the time of writing; please note diamond prices fluctuate).

With your budget in mind, take a look at the carat weight you could achieve with a natural vs lab diamond. The lab diamond will be considerably bigger, so it may strike you as the better investment!

8. Choose a solitaire ring

A solitaire engagement ring is very simple, refined and incredibly timeless. Because there are no extra diamond embellishments, a solitaire ring setting is by far the least expensive, which means you can dedicate more of your budget to the central diamond.

9. Choose less diamond coverage on the band

You may like the look of a ring with tiny diamonds set along the band - but these come at a cost, for the diamonds themselves plus the craftsmanship required to set each little diamond. There’s no need for a full eternity diamond band, as most of the time you're viewing your ring from the top, and the back of the band isn't visible.

Most diamond band engagement rings have a 40-60% coverage, but you can opt for a bespoke ring with fewer diamonds either side of the centre stone to save money.