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There's already a lot of good advice on here. I just wanted to point out that in reality, the diamond prices are set but choking off the supply of them until the costs are high.
I think its General Electric that can now actually manufacture a diamond so good that even diamond experts cannot tell them apart. This is of course a huge concern to the actual diamond industry because it could potentially drop the bottom out of the cost of diamonds.
Also, the above mentioned 2 months salary idea has it's roots in diamond industry marketing which has had some of the most sucessful marketing campaigns out there.
Knowing all that, I bought my fiance a diamond ring in a 18k white gold setting that she loves. It comes down to finding something that she'll be happy with as well as something that's not going to kill your budget in the process.
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"It'd be better for me if you don't understand"
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