The engagement ring is a tradition that dates back to Roman times. At that time, the ring represented both hands clamped to one another. This symbol originates from the Italian term "mani in fede", meaning ‘hands i trust’. At the time of dowries and gifts exchanges, an engagement ring meant that a contract was concluded. Today, rings come in all shapes and sizes, but diamond engagement rings remain the most popular.  Keep reading to learn more about diamonds, how to evaluate a diamond ring and how to determine their value based on supply and demand.

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Diamond Popularisation

The use of diamond in the manufacturing of an engagement ring became popular in the eighteenth century, following the discovery of diamonds in South Africa. Since 1888, the De Beers Company has made every effort to acquire the majority of the production of this raw gemstone. It took them a century to monopolise the market and control the price of diamonds.

De Beers embarked on an extensive companion to value this precious stone and make it one of the most popular marriage related subjects. In 1947, its advertising campaign conveyed a strong, new idea where they linked the diamond’s purity and strength with the eternal notion of love and sincerity of feelings. The slogan said "A diamond is forever".

How to Determine a Diamond’s Value

Before choosing an engagement ring with a diamond, we advise you to consider the 4C’s: Cut, Carat, Clarity and Color. Cut refers to the cutting of the stone. When a diamond is perfectly cut, light is reflected from one facet to another and breaks down the colour of that light, giving the diamond that stunning sparkle.

The diamond weight is expressed in carats where one carat is equal to 0.20g, and can be divided into 100 points. Therefore, a diamond of 0.75 point equals 0.75 carat.

The presence or absence of defects assesses the clarity of a diamond. The fewer defaults, the more value.

Regarding colour, the assessment is made on a scale from D to Z where the D diamonds are colourless and the most valuable.

Rising Diamond Prices

Investors need a secure value for their investment. Gold has played this role at all times, but the gold market has become too versatile and jewellers need a product with a price that’s strong enough to withstand the various economic shocks. This product could be diamonds. Featuring an intrinsic value because of its beauty and rarity, diamonds will always be popular no matter how the world changes.
Diamond prices are bound to increase at a steady pace in the coming years, which makes diamonds a solid long-term investment. Diamond prices took a hit last year since the pandemic resulted in lower demand. But prices are rising again, showing a 7% increase for round diamonds this month compared to November last year.  This trend is likely driven by an ever-increasing demand for this precious stone, and the rising hope that the world will return to normal soon, meaning we can start planning our dream weddings again.

Sustained demand

Consumers are adapting to the new normal, but demand for diamonds continues. According to De Beers 2020 Diamond Insight Report, consumers are mindful of how they spend money, and many consider showing off excessive jewellery as inappropriate. De Beers’ research revealed that many people gravitate towards designs they know and trust, such as the timeless solitaire setting. This design is appealing through its association with strength and security.
In contrast, 2020 reiterated the strength and resilience of China’s consumer market for diamonds. Despite lockdowns and economic uncertainty, Chinese demand for diamonds continues to surprise us, with multiple major jewellers indicating high double-digit sales growth. The sustained demand for diamonds in China is likely due to their consistent wealth creation and budding middle and upper-middle classes partial to luxurious items.
Whether you’re looking for a simple and timeless classic or a showy and luxurious design, BAUNAT is happy to help you find your perfect match. Do not hesitate to contact us if you need guidance –– our team is always happy to help!

Looking for something more specific? With BAUNAT’s tailor-made service, we help you bring your dream engagement ring design to life. From the initial idea to the final 3D version, our team of experts is with you every step of the way.
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