A diamond's beauty, rarity, and price depend on the 4C's - Cut, Clarity, Carat, and Color. The 4Cs are used throughout the world to classify the rarity of diamonds. Diamonds with the combination of the highest 4C ratings are more rare and, consequently, more expensive. Each C has it's unique value in determining the beauty of diamonds.
Diamonds have been known in Europe since the time of Plinie the Wise, who described the stone extensively in his works as being extremely hard, colorless and resident to fire. The Greeks called it ADAMAS which literally meant untameable or indestructible.
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CARAT (Weight)
Carat is a measure of weight but is often confused with size. One carat is equivalent to 200 milligrams. One carat can also be divided into 100 'points'. A .75 carat diamond is the same as a 75-points or 3/4 carat diamond. Since larger diamonds are found less frequently in nature stones weighing more in one piece are more valuable than multiple stones with the same weight. For example, a 1-carat diamond will cost more than twice a 1/2-carat diamond, all other C's being equal.
CLARITY (Presence of Inclusions)
Every diamond is unique. Naturally-occurring features - known as inclusions - provide a special fingerprint for each stone. Inclusions are natural identifying characteristics such as minerals or fractures, appearing while diamonds are formed in the earth. They may look like tiny crystals, clouds or feathers. To view inclusions, jewelers use a magnifying loupe. This tool allows jewelers to see a diamond and 10x its actual size so that inclusions are easier to see. The position of inclusions can affect the value of a diamond. Inclusions are ranked on a scale of perfection, known as clarity, which was established by the Gemological Institute of America (GIA). The clarity scale, ranging from F (Flawless) to I (Included), is based on the visibility of inclusions at a magnification of 10x. An inclusion in the middle or top of a diamond cut could impact the dispersion of light, sometimes making the diamond less brilliant. The greater a diamond's clarity, the more brilliant, valuable and rare it is.
GIA clarity designations are:
Flawless - FI
Internally Flawless - IF
Very very slightly included - VVS1, VVS2
Very slightly included - VS1, VS2
Slightly included - SI1, SI2
Included, I1, I2, I3
COLOR (Or Lack Thereof, i.e. Colorless)
Diamonds are found in almost every color of the rainbow, but white-colored diamonds are the most popular. Graded on a color scale established by the Gemological Institute of America (GIA) diamonds are rated from D (colorless) to Z. Warmer colored diamonds (K-Z) are particularly desirable when set in yellow gold. Icy winter whites (D-J) look stunning set in white gold or platinum. Color differences are very subtle and it is difficult to see the difference between an F and a G for example. Therefore, in order to accurately grade the color controlled lighting conditions are used and every stone is compared to a master set. Truly colorless stones, graded D, treasured for their rarity, are some of the most expensive, all other C's equal. Diamonds also are created in intense shades of blue, green, yellow, orange, pink or - rarest of all - red. These diamonds are called 'colored fancies' and are extremely rare and highly treasured.
CUT (Angles and Proportions)
It takes a master cutter to reveal a diamond's true brilliance, fire and ultimate beauty. A well-cut diamond will internally reflect light from one mirror-like facet to another and disperse and reflect it through the top of the stone resulting in a display of brilliance and fire. Stones that are cut too deep or too shallow lose or leak light through the side or bottom, resulting in less brilliance and ultimately, value.
Cut also refers to shape - round, square, pear, or heart for example. Since a round diamond is symmetrical and capable of reflecting nearly all the light that enters, it is the most brilliant of all diamond shapes and follows specific proportional guidelines. Non-round shapes, also known as 'fancy shapes,' have their own unique requirements in establishing the quality of the cut.