News

Call it cheesy, but many couples still put stock in the romance of Valentine's Day, if its popularity as a proposal date is any indication.

But this year, the recession has started to take the sparkle off the occasion, with more couples putting budget before bling when shopping for a ring.

"People are looking for a bargain. They are shopping around quite a bit," said Daniel Angel, sales manager of Budget Diamonds Online, a Toronto-based Internet retailer.

A growing number of would-be grooms are lowering their budgets and looking for less expensive rings, including alternatives to diamonds and gold, according to retailers across the country.

"I just think money's tighter," said Niel Westman, president of Diamonds West Wholesale Inc., based in Langley, B.C. "Diamonds aren't cheap."

"There was a little leeway with the budget [before]," Mr. Angel said. "Now the budget is very exact. They want to stay under that budget at all costs."

The idea of getting a giant rock has lost some of its lustre, it seems. These days, more brides-to-be are sporting sapphires or birthstones on their ring fingers.

"We definitely have a lot of clients that don't prioritize with having to have a big flashy diamond in the centre," said Sarah Hamel, owner of Made You Look, a Toronto jewellery store.

Many jewellers say prospective grooms are also less willing to make a decision based on advice from salespeople. More than ever, they arrive at the store armed with information and know exactly what they want, according to diamond retailers throughout Canada.

The diamond industry has already suffered a blow in recent years after the controversy over conflict diamonds exploded in North America, due in part to the 2006 movie Blood Diamond.

Diamonds West, which offers wholesale prices as much as 70-per-cent lower than the retail price, is an example of how the market for engagement rings is shifting in the face of a recession. Calls and e-mails from prospective customers have been pouring in from across the country, Mr. Westman said.

"I think it definitely will increase, if anything," he said.

Meanwhile, many big-name jewellers are suffering major losses as consumers tighten up discretionary spending.

Tiffany & Co.'s worldwide holiday-season net sales dropped 21 per cent compared with the year before - a fact the company blames on the economic crisis and a marked decline in discretionary spending.

Birks & Mayors Inc. experienced an even bigger drop of 31 per cent in holiday sales compared with the previous year.

"It is what it is," said Anny Kazanjian, the company's divisional vice-president of public relations and events. "Canadian business is perhaps not as challenging as the U.S. market in general. This is when companies have to hunker down and stick to their core values and that's what we do best."

De Beers, the largest producer of diamonds in the world, said last month it will slash production in the wake of poor holiday sales, cutting the amount of rough diamonds made available to customers by up to 50 per cent over the next few months.

Waning demand has caused rough diamond prices to fall in recent months, and they could plummet an additional 30 per cent this year, according to a report by RBC Capital Markets analyst Des Kilalea.

That could translate into lower costs at the retail level, inflicting major damage on the public perception of diamonds.

As it becomes a more volatile commodity, "it remains to be seen if both men and women's emotional attachment to the product will be undermined," Nicholas White, president of White & Co., wrote in an industry analysis last November.

That was certainly the case with Shelley Sutton.

The Oshawa, Ont., woman, who got married last September, opted for a small, inexpensive wedding that wouldn't throw her and her new husband into debt.

"I have a problem with starting life out with an excessive debt load. It doesn't make sense," Ms. Sutton said. "It doesn't make sense financially and it doesn't make sense emotionally."

Instead of spending thousands on a huge diamond, Ms. Sutton got a half-carat ring with seven small diamonds arranged in the shape of a forget-me-not flower.

The price tag: $1,000.

While the ring represents an emotional bond between the newly married couple, Ms. Sutton said, it doesn't need a massive price tag to express a couple's love and commitment.

"[The] reality is if you're focusing more on the financial value of your wedding, you're forgetting the fact this is the joining of heart and soul and agreeing to live together in somewhat wedded bliss," she said. "You're agreeing to spend your life with someone. Not your bank account."

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Affordable alternatives

Forget diamonds and gold.

Couples concerned about cost and ethical issues are turning

to alternatives to the traditional engagement ring.

Coloured gems: Many brides-to-be are wearing sapphires, rubies or their own birthstone instead of a diamond. Coloured gems cost significantly less.

Lab-grown diamonds: A new breed of synthetic diamonds has been produced that matches the colour and clarity of the real thing. They cost much less than natural diamonds and are becoming a popular option among ethically aware consumers.

Palladium: Palladium is growing in popularity for engagement and wedding rings because it has a bright white colour, similar to platinum and white gold, but costs a fraction of the price.

Titanium: Although titanium is not quite as popular as palladium, the market for the strong silver-coloured metal is growing, in major part because of its relatively low cost. Online retailer http://www.titanium-jewelry.com reported that sales this past holiday season increased 16 per cent compared with the previous year.

Carly Weeks