Unfortunately, if you do ever want to sell, the setting is essentially worthless. Almost all of the cost of the setting is in the labor, and, as the article explains, those who buy "used" jewelry are almost certainly going to part it out and melt it down. (That is, unless you're talking about really high end estate jewelery.) So, for the $3-10k you'll spend for a nice setting, you'll probably get back 20-50% of the price of the stones, and maybe 60-80% of the spot value of whatever metal you choose, which again, is far, far less than the cost of the setting.
This isn't to say that you're not right on from a signaling standpoint, just that if you think you might have the need to resell the ring in the future (or perhaps borrow against it), you're better off getting a better stone than a fancier setting.
Do engagement rings have a large resale value anyway? This is a whole article about the marketing push for diamonds. I can't imagine what "second hand ring" would say....
That's sort of the point. The ring itself is only really worth whatever the metal weighs because nobody wants a "used" ring. So if you sell the ring to a jeweler, he is almost certain to melt it down and recast it. Whatever you paid for the craftsmanship/design of the ring is literally melted away.
The stone is another story. It's very easy to resell/reuse good stones, although as the article indicates, the value you'll be able to recoup isn't exactly great.
Yes that's true, but I'd presume a lot of what you pay for in a diamond ring initially is not the cost of raw materials, but the symolism, and hence a diamond ring would lose value.
I was thinking you'd lose money either way if you went with diamond vs. non-diamond, so "you'll lose value" is not a compelling argument for non-diamond.
Everything about a wedding is front-loaded to an exreme. From photos, to flowers, to cars - when it's a wedding the price is loaded. It's a complete rort, everyone knows it is going on, yet - there it is, everyone just pays up. Because nobody wants to be seen to be cheap.
This isn't to say that you're not right on from a signaling standpoint, just that if you think you might have the need to resell the ring in the future (or perhaps borrow against it), you're better off getting a better stone than a fancier setting.