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Similar traditions seem to date at least to the ancient Greeks and Romans.
Designs of such rings have varied greatly over the years. Current fashions for engagement rings are for a gold or silver band with a single diamond. This trend dates from advertising campaigns in the 1940s by de Beers, the world's near-monopoly diamond producer.
In some European countries (e.g. Germany), engagement rings are usually plain gold bands without a diamond and are worn by the woman and the man.