The Four "C's"
The four "C's" are the most important things to consider when you buy a diamond. The C's stand for Carat weight, Clarity, Color, and Cut. All four of these C's are important and if you purchase a diamond that is not good in any of these areas, your diamond may not have the appearance that you want.
Carat
A diamond's size is measured in carat weight and each carat is equal to 100 points. A .75 carat diamond is the same as a 75-point diamond or a 3/4 carat. Larger diamonds are very desirable because they show off a diamonds's fine color and cut. But diamonds of equal size may vary greatly in value and brilliance depending on the other 3 C's - Clarity, Cut, and Color.
Clarity
The greater a diamonds clarity, the more brilliant, valuable, and rare it is. Virtually all diamonds contain identifying characteristics. These characteristics are natural phenomena called inclusions. They are nature's birthmarks and they may look like tiny crystals, clouds, or feathers. Internally flawless diamonds reveal no such inclusions under 10X magnifications and they are the rarest. Diamonds with very, very small inclusions are graded as VVS1 and VVS2. The larger the inclusions the lower the grade. Inclusions that can be seen with the naked eye are graded I1 to I3. The number, color, type, size and position of surface and internal birthmarks affect a diamonds value.
Color
Diamonds are graded by color, starting at D and continuing through the alphabet. Truly colorless diamonds are graded D and are valued for their rarity. While many other diamonds appear colorless, they may actually have subtle yellow or brown hues. Although these diamonds can still be beautiful they are less rare and therefore less valuable. Compare diamonds side by side to see differences in color. There are "Fancy" diamonds that have well defined colors that include red, pink, blue, green, and canary yellow. These are all highly prized and particularly rare.
Cut
A well cut and faceted diamond, regardless of its shape, sparkles with fire and light. The best cut diamonds offer the greatest brilliance and value. While nature determines a diamonds clarity, carat weight, and color, the hand of a master craftsman is necessary to release its fire, sparkle, and beauty. When a diamond is cut to good proportions (proper height to width to depth ratios) light will reflect from one mirror-like facet to another and disperse through the top of the diamond, resulting in a show of fire and light like nothing else seen on earth. Diamonds that are cut too deep or too shallow lose light that leaks out through the sides or the bottom. As a result, poorly cut diamonds will be less brilliant and less desirable.