Are diamonds a good investment? Not according to experts. "A diamond ring is not an investment in the sense of making a return on your money because you will never get what you put in it back out," financial planner, Christopher Cannon, told The Cheat Sheet. Another expert and financial planner, Ed Snyder, explained, "Retailers mark [diamond rings] up so high, they depreciate as soon as you walk out of the store."
Many customers would concur. After discovering her husband was having an affair, a woman divorced him and attempted to recoup some of the money from her engagement ring. Although it originally cost £1,000 (nearly $1,225 USD), a jeweler offered her £50 ($70) after haggling. "I even had a certificate that verified the diamond's authenticity," she told The Guardian. Yikes! Of course, the situation is similar in America. Personal finance expert, David Bakke, estimated a slightly higher return to The Cheat Sheet, but still thinks you could only get back 60% of what you paid.
Much like a car that depreciates as soon as you drive it off the lot, diamond rings don't hold on to their value.