Look back to my very first post on March 7^th of this year. There is a mention of a “Big Ticket Purchase.” Well yes I bought a car, a computer, and an iPhone this year, but I also bought an engagement ring. The other things I’ll buy again and again and again. The engagement ring is something you buy only once. Here’s what I did:

The Sheconomist and I have been together for a long time. I won’t bore you with those details but needless to say she put a gun to my head and told me to propose or I would be shot.

I went to a local jewelry store that had some very important features: It wasn’t connected to a mall, I wasn’t harassed upon entry, and they have free candy and coffee. I knew mostly what the Sheconomist was interested in with regards to an engagement ring (big and shiny). However, I also knew there were some styling elements that were important to her. There were a few rings that matched the profile of a good style based on previous trips to various stores. One in particular was new and interested me. I made a note of it.

The next day, the Sheconomist had the idea to go to the same store. Thankfully, the nice woman that helped me the day before was able to act like we had just met when I walked into the store, her Oscar is in the mail. The Sheconomist was introduced to various rings and eventually found the same ring I mentioned above. It was love at first bling.

Without the Sheconomist’s knowledge, I began the process of ordering a ring. I contacted various jewelers in the area that are capable of ordering the ring to get an idea of what the prices were going for. The place we had visited maintained the lowest price and also offered a discount with financing (I’ll get to that in a minute). I decided our original store was the place to make the purchase. But once you’ve picked a ring you must pick a center stone (assuming you’re using diamonds).

The center stone is almost always more expensive than the ring itself. Do not buy a ring with the stone already set, you will get ripped off. Do your research separately from the store to get a good idea of pricing, and that 4 C’s thing (cut, clarity, color, and caret). Once you’ve done that go down to the store to look at their selection. Have a jeweler show you diamonds from all types of qualities, you will soon learn that the 4 C’s are about as important as which type of leather to put in a car. It’s all leather, and only the snobbiest folks and materialistic wastes of space can detect any difference.

The exception is caret, which is the weight of the stone. There is a direct correlation with size and weight. The bigger it is, the more expensive it is too. Do not get the biggest stone you can find, get one that works with the setting you bought. Also ask for a history of the diamond, you can get information on where it was mined, when it was cut, and who cut it.

And of course how I paid for it. I had enough in savings to swipe the credit card (cash back) for the whole shebang. However I was offered 0% with no payments for 6 months and 10% off if I financed half. Since I take few risks with money, I thought I would give this a go. So the rest of the cash is sitting around getting interest in my ING Direct savings account. When my 6 months are up I’ll pay the rest off and close the account. Closing credit does ding your credit score, however any reasonable credit scrutinizer will understand one’s desire to close credit lines like at a jewelry store and it should not have an impact on future financing ventures.

I’ll closed with a few things to keep in mind when shopping for jewelry:

• Outside of unique designs, this is a commoditized market. No one really offers something special.
• The sales folks are commissioned agents. They get a cut and will bend over backwards to win your business.
• Sales are dreadful these days, you have more wiggle room than in the past.
• Mark-up on jewelry is often about 100%, that leaves space to negotiate.
• Jewelers work hard, do not waste their time with a lengthy process if you do not intend to buy.

I almost forgot! She said “YES!”

By The Weakonomist

The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics.

categories: personal, personal finance