Are Diamond Engagement Rings a Good Investment?

There’s no doubt that a diamond ring is a significant investment—but is it a good investment? 

The answer to that is yes… but also, sometimes no. 

Super clear, right? Let us explain.

Engagement rings aren’t typically bought with the intention of resale, which means they aren’t the best financial investment. A diamond engagement ring is more of a sentimental investment than a monetary one. When asking if diamond engagement rings are a good investment, you have to reframe your thinking to fit this idea. 

A Symbol of Your Love

Engagement rings have a long and interesting history. What has now become the ultimate physical symbol of love and devotion began in Ancient Rome as, well… a sign of ownership. (So romantic.) According to the Gemological Institute of America (GIA), Roman women wore rings of ivory, flint, bone, copper, and iron to “signify a business contract or to affirm mutual love or obedience.” Okay, so, there was some love symbology in there after all. 

It wasn’t until the year 850 that Pope Nicholas I first declared that the engagement ring was to be used to represent a man’s intent to marry, and the first time diamonds were introduced to engagement rings was in 1477. 

Nowadays, engagement rings are so much more than just a piece of jewelry (and they’re CERTAINLY more than a sign of “ownership”)—they are the promise of forever. From selection to proposal, there is a lot of time and thought that goes into securing an engagement ring. While many Millennials are choosing gemstones other than diamonds in their engagement rings, the sentimental value of the engagement rings remains. 

A Family Heirloom

Everyone loves a great family heirloom, and nothing makes for a more beloved one than an engagement ring. Remember all that lovey-dovey stuff we talked about earlier? What better way than to secure your family legacy by passing down a piece of jewelry that was well-loved for decades? 

Even if your ancestors don’t use your engagement ring to propose to their sweetheart, having a piece of jewelry that was near and dear to your heart is something special that will be treasured. 

Now, let’s talk about the actual financial investment aspect of buying a diamond engagement ring. While diamond engagement rings are generally not seen as a sound financial investment due to depreciation, there are a few things to look for if you want your engagement ring to be a better monetary investment. 

GIA Certification

When talking about selecting an investment-worthy diamond, one of the most important things to consider is GIA Certification. GIA is the gold standard when it comes to gem labs. A GIA certificate has all the information you need to know about the gemstone. 

A GIA-certified diamond ensures that the carat weight, cut grade, color grade, and clarity grade (also known as the 4Cs) are of high quality. Never buy an expensive gemstone—especially one you want to consider an investment—without a GIA certificate! 

White Diamonds

Small white diamonds are not considered a rarity. Large, high-grade white diamonds, on the other hand, are. Here are a few things to consider when choosing a white diamond as an investment:

  • Carat: the best colorless diamonds to invest in are 3–5+ carat diamonds.
  • Cut: a diamond with maximum fire and sparkle is the one you want to invest in. Look for diamonds that are rated Excellent or Good on the cut rating scale.
  • Color: colorless diamonds (when buying a white diamond) are the best when choosing an investment-grade diamond. 
  • Clarity: clarity grades range from Flawless, Internally Flawless, Very Very Slightly Included, Very Slightly Included, Slightly Included, and Included. For investment diamonds, choose a diamond that’s Flawless or Internally Flawless.
  • Shape: the best shapes for investment diamonds are round, oval, square, and radiant. Those are the most desirable, brilliant shapes. 

Diamonds of a Different Color

The last few decades have seen an increase in colored diamond purchases, making these non-traditional stones better investments than white diamonds. Colored diamonds are less volatile and are said to have the best long-term appreciation potential. 

Pink, red, and blue diamonds are exceptionally rare, making them excellent choices for investment-minded people. Orange and yellow diamonds are also rare. 

Jewelry Insurance: The Best Investment

Whether you purchase a diamond engagement ring as a financial investment or an emotional one, there’s one thing you must not forget—a jewelry insurance policy! Buying coverage for your engagement ring is the best investment you can make because it protects your ring in the event of theft, loss, unintentional damage, and natural disasters. 
At Zillion, we offer jewelry insurance with better coverage, better rates, and ease. With Zillion, you do more than just wear your jewelry—you wear it with confidence.


Zillion partners with jewelers to offer their customers lower rates on jewelry insurance. If you don’t see your jeweler on our list, we’re sorry, we won’t be able to offer you a quote for insurance. If you purchased from a Preferred Jewelers International retailer please email us at and let us know the name of the retailer. Thank you.