HOW MUCH SHOULD AN ENGAGEMENT RING COST?

There is no single correct answer to how much should an engagement ring cost. And there certainly isn’t a rule that says it should equal a particular number of months of your salary. An engagement ring can cost $3,000, $8,000 or $30,000, and the price alone tells you surprisingly little about what you are actually buying.

The centre stone is usually a significant part of the engagement ring cost, but it is only one part. You are also paying for precious metals, the ring setting, manufacturing, craftsmanship, design, finishing and, depending on where you shop, retail overheads and brand positioning.

The journey of the diamond matters too. A stone that passes through several traders before reaching a jewellery studio can accumulate additional costs at each stage. A jeweller sourcing closer to a diamond grower, manufacturer or primary supplier may operate with fewer intermediaries. That doesn’t automatically make one diamond cheaper than another, but it is one reason apparently similar diamonds can be offered at very different prices.

With a lab-grown diamond, it is also worth understanding the distinction between the facility that grows the diamond and the independent gemmological laboratory that grades it. Lab-grown diamonds are primarily created using HPHT or CVD growth processes. Production conditions, yield, energy and technology requirements, cutting, possible post-growth treatment, grading and distribution can all contribute to the final cost. GIA explains the differences between  HPHT and CVD diamond growth.

A grading report is another part of the picture. GIA’s 4C: cut, colour, clarity and carat weight remain the global framework for describing diamond quality, and two diamonds of exactly the same carat weight can have very different values because of differences in the other characteristics. This is why engagement ring pricing needs to be viewed as a whole rather than reduced to the carat number on a certificate.

What’s the average cost of an engagement ring?

If you search for the average engagement ring cost in New Zealand, you will find plenty of different figures.

Published guides from New Zealand jewellers currently place typical spending anywhere from roughly $4-6,000 at one end to $7-10,000 at another. These are useful indications of what individual jewellers are seeing, but they should not be mistaken for an official national average. There does not appear to be a current Stats NZ dataset establishing one definitive average engagement ring cost for New Zealand. More importantly, averages don’t tell you what you are receiving for the money.

Two rings priced at NZ$5,000 could be completely different. One might put a larger proportion of the budget into the centre stone and use an established ready-made setting. Another might have a smaller diamond but involve an original design, individually developed proportions, a made-to-order setting and extensive hand-finishing.

Neither approach is automatically better. The question is: what do you value?

Custom or ready-made engagement rings

The difference between a custom engagement ring and a ready-made engagement ring isn’t simply that one is expensive and the other is affordable.

Large jewellery businesses can manufacture the same design at scale. Components or complete settings may be cast in quantity, processes can be standardised, and the cost of developing the original design is spread across many rings.

There is nothing inherently wrong with that. If you love a classic solitaire and your priority is putting as much of your budget as possible towards the size or specification of the centre stone, a ready-made ring may make perfect sense.

A bespoke engagement ring is different. You are paying not only for materials, but for someone’s eye, experience and design decisions: the width of the band, the height of the stone, the proportions of the basket, the way the setting looks from the side, how another ring will sit beside it and hundreds of tiny decisions that determine whether the finished piece feels balanced. For something that may be worn every day for decades, I think there is something particularly meaningful about knowing why those decisions were made.

Is a custom engagement ring always more expensive?

No.

A custom ring can cost more because additional design time, specialist production and hand-finishing are involved. But custom does not automatically mean more expensive, just as mass-produced does not automatically mean inexpensive.

A large luxury retailer may have significant costs associated with stores, marketing, inventory and brand positioning. An independent jeweller or smaller jewellery studio may have a very different cost structure. Conversely, a particularly complex bespoke design may require substantially more labour than a standard setting.

This is why I would look at engagement ring value rather than comparing price tags alone.

Gold is a good example. Seeing “recycled gold” in a description doesn’t mean the metal is a cheaper substitute. Gold can be refined and reused without losing the properties that make it suitable for fine jewellery. In responsible supply chains, recycled precious metals can also involve documented sourcing, due diligence and traceability. The Responsible Jewellery Council’s Chain of Custody framework specifically covers traceable and responsibly sourced gold, silver and platinum-group metals. (Responsible Jewellery Council)

How to get the best value for your engagement ring budget

Instead of beginning with what you think you are supposed to spend, I recommend making a few decisions first.

1. Decide what matters visually. If you have always wanted a larger diamond, prioritise carat size and understand where you are comfortable making compromises elsewhere.

2. Decide what matters in diamond quality. Carat weight alone doesn’t determine value. Cut, colour and clarity can materially change both the appearance and price of a diamond. (GIA 4Cs)

3. Consider how the ring is made. If proportion, craftsmanship, an exceptional finish and small details matter to you, ask who designs the ring, where it is manufactured and how it is finished.

4. Choose the jeweller, not simply the price. A good jeweller should be able to explain why they selected a particular diamond, metal, setting and construction method rather than simply telling you that one option costs more.

Every BÓHDAN piece is custom-made. Even designs with a set price on our website are made to order rather than held as finished stock. Each piece enters production only once it is ordered. This allows us to create more responsibly, avoid unnecessary production and give every ring the individual attention it deserves.

It is also why BÓHDAN doesn’t rely on seasonal promotions or discounting. Our pricing reflects the diamond, precious materials, craftsmanship and work that goes into creating each piece from the beginning.

So, how much should you spend?

There is no “right” engagement ring budget.

Spend an amount that is comfortable for you, then look carefully at what that money is buying.

For one person, the priority might be a larger natural diamond. For another, it may be a high-specification lab-grown diamond. Someone else may care far more about a one-of-a-kind design, beautiful proportions and the experience of creating the ring together with a designer.

An engagement ring is an unusual purchase because its value isn’t purely financial. It is an object you may look at every day for the rest of your life.

The best ring is therefore not necessarily the most expensive one. It is the one where diamond quality, materials, craftsmanship, design and budget feel considered, and where the finished piece feels unmistakably right for the person who will wear it.

The BÓHDAN approach

We work closely with our clients from the very beginning, whether that means selecting the right diamond, refining proportions, developing the setting or considering how the finished ring will sit and feel on the hand.

We also work directly with diamond laboratories and suppliers wherever possible. This allows us to be more involved in the sourcing process, understand the specifications and origin of the stones we select, and reduce unnecessary layers between the diamond and the finished piece.

An engagement ring is rarely just another jewellery purchase. It often marks one of the most meaningful moments in someone’s life. I believe the process of creating it should feel considered, transparent and just as personal as the finished piece.

By Alla Bóhdan

About the author

Alla Bóhdan is the founder and designer behind Bóhdan Diamonds, an Auckland-based fine jewellery studio specialising in thoughtfully designed diamond pieces and bespoke engagement rings.