Rising gold prices are changing how engagement rings are priced

New research from 77 Diamonds says higher gold prices are cutting jewellery-sector demand and changing the way engagement rings are valued. Buyers are responding by reconsidering ring settings, materials and budgets as gold becomes more expensive and lab-grown diamonds gain ground.

Why it matters: - Rising gold prices are changing the economics of engagement rings, shifting more of the final cost toward the setting and away from the centre stone. - The move could make newly produced gold jewellery less accessible and push buyers toward alternative metals and different design choices. - For retailers and manufacturers, the price shift is reshaping consumer demand as well as product mix.

What happened: - 77 Diamonds said jewellery-sector demand for gold fell more than 23% in the past quarter. - Global gold demand fell 6% in Q1 2026, but remained 2.1% higher than Q1 2025. - Jewellery manufacturing demand dropped 23.5% quarter over quarter and 22.9% year over year. - Gold prices rose 16.2% in the quarter and are now 59.3% higher than Q1 2025. - The research was based on global gold demand and price data sourced from gold.org.

The details: - 77 Diamonds said higher gold prices are creating cost pressure for jewellery manufacturers and consumers. - Co-founder Tobias Kormind said the traditional engagement ring value split has been about 80% in the diamond and 20% in the setting. - Kormind said the combination of higher gold prices and greater availability of lab-grown diamonds has, in some cases, reversed that balance. - The company said the setting is taking on a larger share of overall ring cost. - 77 Diamonds said customers are becoming more informed and strategic about how they allocate their budget. - Buyers are exploring different combinations of materials and design to get better overall value. - The company said guidance and expertise are becoming more important as shoppers compare options. - 77 Diamonds reported growing interest in platinum, which has historically cost more than gold but is now comparatively more accessible. - 77 Diamonds also pointed to palladium, describing it as a lighter metal that offers a different balance of durability and cost.

Between the lines: - The data suggests the engagement ring market is no longer being shaped only by diamond pricing and consumer taste. - Gold inflation is forcing a broader re-evaluation of what drives value in fine jewellery. - Lab-grown diamonds and alternative metals are giving buyers more ways to manage total spend without abandoning premium designs.

What's next: - Buyers are likely to keep comparing metal choices, stone options and setting styles as gold prices stay elevated. - Jewellery brands may need to adapt pricing, sourcing and product positioning if the current cost structure persists. - The market could continue moving toward more customizable ring budgets and material combinations.