The quality of a diamond that has been faceted into a gemstone is primarily determined by four factors: color, cut, clarity, and carat weight. A standardized method of evaluating diamond quality was developed in the 1950s by the Gemological Institute of America and is known as "The 4Cs of Diamond Quality".
Color: Most gem-quality diamonds are colorless or slightly yellow, brown, or gray. The most appreciated and valuable diamonds are those that are completely colorless. These are the ones that are sold at the highest prices. However, another category of diamond gemstones is gaining popularity. These are colored diamonds, which come in a variety of shades, including red, pink, yellow, orange, purple, blue, green, and brown.
The value of colored diamonds is based on the intensity, purity, and quality of their color. Those whose color is saturated and vivid are called "fancy color diamonds" or "fancies". On average, only one diamond in 10,000 has a color that deserves the designation of "fancy". This rarity makes fancy color diamonds extremely valuable. Some of them have been auctioned for more than a million dollars per carat. They are among the most valuable and spectacular diamonds in the world.
Clarity: The ideal diamond is free of fractures and inclusions (particles of foreign matter in the gem). These detract from the appearance of the stone and hinder the passage of light. When they are present in large numbers, dark in color, in obvious positions or sizes, they significantly degrade the appearance of a cut gem and decrease its value. They can also reduce the stone's resistance.
Cut: The quality of the design and craftsmanship used to cut a diamond is what determines its appearance. The angles at which the facets are cut, the proportions of the design, and the quality of the polish determine its appearance, brilliance, sparkle, pattern, and fire. Ideal stones are perfectly polished to be highly reflective and emit maximum fire. Corresponding faceted faces are of equal size and identical shape. And the edges of each facet perfectly join with each of its neighbors.
Carat: Diamonds are sold by the carat (a unit of weight equal to 1/5th of a gram or 1/142nd of an ounce). Small diamonds generally cost less per carat than larger stones of equal quality. This is because very small stones are very common and large stones are exceptionally rare.