Engagement rings are becoming more expensive due to several economic factors, particularly the sharp increase in gold prices and the implementation of new tariffs on imported gemstones. These changes are significantly affecting how jewelers set their prices and manage customer expectations. Gold prices briefly reached a record high of $3,500 per ounce on Tuesday, marking a significant increase from around $3,000 a month ago and $2,200 a year ago. This dramatic rise is one of the primary drivers behind the increased cost of engagement rings and other fine jewelry. For a typical engagement ring, about 20% of the cost comes from the metal, while 80% is attributed to the gemstone. Gemstone tariffs, introduced by President Donald Trump's "baseline" tariffs on April 2, 2023, are adding another layer of complexity. These tariffs, which apply to all imported gemstones, further inflate the total cost of an engagement ring. The combination of these factors has led jewelers to reassess their pricing strategies, with many expecting to increase prices by 10% or more starting in June. Ankur Daga, the CEO and founder of Angara, a direct-to-consumer jewelry company specializing in customized pieces, noted that engagement rings constitute more than a third of his business. Most of Angara's production occurs in Thailand, but the finishing touches, including the once duty-free gemstones, are done in a U.S. workshop. Daga explained that if current conditions persist, his company will have to adjust prices to cover both the higher gold costs and the new tariffs. Jewelry designer Audrey Yonkus, founder of Bieta & Co., observed that gold prices have surged by over $1,000 since she launched her business in the summer of 2022. Despite the rising costs, Yonkus believes that the desire to get engaged remains strong, and customers are willing to pay more for their ideal rings. She mentioned that in July 2024, gold reached over $2,400 per ounce, and consumers continue to view engagement rings as a meaningful and valuable purchase. Dominick Gabriel, co-founder of Gabriel & Co., a 35-year-old jewelry company, echoed this sentiment. He noted that even during price hikes, most consumers do not hesitate. Instead, they often see it as an investment and may be inclined to spend more, viewing gold and precious stones as a smart and enduring asset. Sherry Shi, founder of Roen, another fine jewelry brand, has already had to raise prices on most of her company's products by up to 15%. Despite initial efforts to keep prices stable as gold prices rose, Shi acknowledged that it became unsustainable to maintain 2024 pricing levels. Thankfully, Roen had stocked up on gems before the tariffs were imposed, providing a buffer against immediate price increases. However, this stock is limited, and the company will need to reevaluate once it dwindles. Daga reported that Angara has a month's supply of untariffed gems, allowing potential fiancés some breathing room before facing full price increases. This temporary reprieve offers a window for those considering a purchase to act sooner rather than later. Both Daga and Gabriel advised consumers to consider buying engagement rings early to avoid the higher costs. While engagements cannot be rushed, purchasing a ring in advance can help manage the financial impact of these economic shifts. In June, the jewelry industry expects to see widespread price adjustments as the combined effects of gold price surges and gemstone tariffs hit home. This means that the cost of a typical engagement ring will likely increase, making it a wise move for consumers to check current prices and consider early purchases. Industry insiders predict that the trend of rising prices will continue, but consumer demand for engagement rings remains robust. Jewelers are adapting by managing inventory more strategically and working closely with clients to create customized pieces within their budgets. The overall consensus is that while engagement rings are getting pricier, they are still seen as a significant milestone and a worthy investment, despite the economic challenges. Angara, known for its direct-to-consumer approach and customizable designs, has successfully weathered previous market fluctuations. Gabriel & Co. has a long history of providing high-quality, handcrafted jewelry, and their experience in navigating market changes positions them well for the future. Roen and Bieta & Co. are also adapting, highlighting the industry's resilience and commitment to serving customers looking for meaningful, high-value jewelry items.