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The value and attractiveness of a diamond is measured by its attributes contained by the four essential diamond features of Cut | Color | Clarity and Carat weight. If you have a basic understanding of these four qualities, you will know enough to make intelligent choices in the significant process of buying a diamond.

Cut describes the geometric relationship of a diamond's facets, which in turn supplies its luster and brilliance.
Color in a diamond is indicated by a scale from D to Z that renders a colorless (D) diamond to be more valuable and desirable than one with a higher indication of yellowish coloration.
Clarity is a calculation of the number and type of natural blemishes found in a diamond.
Carat is a measure of a diamond's weight. It is not a description of size.

Diamond Grading, or the summary of these qualities, determines a diamond's price. Of the four, only Cut is subject to human intervention, and perhaps is the most important, since, all other features being equal, the quality of a diamond's cut can enhance or moderate a rough diamond's natural potential.

Cut

If a diamond is poorly cut, no amount of good color and clarity can make up for it. That's why a diamond's cut and proportions are pre-eminently significant. It is what makes a rough stone sparkle and shine; what transforms it into a dazzling gem.
A diamond's facets, or flat planes on the stone, as they have been cut and polished will realize the amount of light that refracts through the diamond. Therefore the better the cut, the finer the luminescence.

The following terms apply to parts of a faceted diamond, and will help in describing an ideal cut versus ones that are either too deep or too shallow. (Non-faceted stones are called cabochons.)

Crown	The top part of the diamond.
Girdle	The edge or border of the diamond.
Pavilion	The bottom part of the diamond, measured from the girdle to the bottom point.
Culet	The lowest point of the diamond. In certain stones, this may be partially open.
Table	The flat top of the diamond, and its largest facet. Also called the face.
Table Spread	The width of the table facet, often given as a percentage of the total width of the diamond.

There are several ways that a diamond may appear to be improperly cut:

	If the table is centered but not symmetrical
	When the table is off-center and asymmetrical
	If the crown is too shallow (extremely thin)
	When the crown is too heavy (extremely thick)
	If the pavilion is too shallow
	When the pavilion is too deep

Diamond shapes

Color

A diamond is deemed colorless for its capacity to absorb all light rays equally. These are identified as in the D to F range, and they have no detectable color, allowing the maximum amount of light to shine through the diamond. They are the most expensive.

Diamonds in the G to I range may appear to be colorless to the naked eye, but they exhibit a minuscule amount of yellow and are called Near Colorless. These may be more affordable and may appear to be just as brilliant as a colorless diamond.
J to M stones will exhibit Faint Yellow traces.
Diamonds rated from N to Z in the color scale will show deeper yellowing, and even tinges of brown and gray.

GIA Diamond Color Scale :

Fluorescence

That bluish sheen which can be observed in a diamond under ultra-violet lighting, is known as fluorescence: a quality that subtly conveys on a diamond its mysterious allure.

It is not well known that medium to strong blue fluorescence in a quality diamond will actually improve its brilliance and loveliness. Yet uninformed buyers are typically troubled by the mere mention of fluorescence in a stone.
The fact is that fewer than 10% of gem quality diamonds will exhibit this blue fluorescence either in an incandescent lighting situation or even when viewed in sunlight, which has strong ultraviolet properties.
There is no need to fret over fluorescence. In D - H color stones, fluorescence only rarely will make the diamond look cloudy. A Faint Yellow (J - M color) stone with good fluorescence will actually appear is if it is Near Colorless. So, for the price-conscious consumer, buying a yellowish diamond with strong fluorescence can actually be a gain.
Blue is the most widespread color of fluorescence. But green, yellow, pink, white and greenish-blue fluorescence are also found in diamonds.

Clarity

Clarity refers to the presence of internal flaws or inclusions in a diamond. The type and placement of these imperfections are often as significant as their presence when determining the value of a diamond. Generally, the fewer the inclusions, the more valuable the diamond.
These flaws will normally be invisible to the naked eye and require viewing by a jeweler's magnifying loupe in order for them to be discerned and appreciated.

Clarity Grading Scale of the Gemological Institute of America

	FL - IF	Flawless or Internally Flawless. FL diamonds are very rare and exhibit no inclusions even under 10X magnification. IF may show minor blemishes.
	VVS1 - VVS2	Very, Very Small Inclusions. Requires 70X magnification to observe minute inclusions.
	VS1 - VS2	Very Small Inclusions. Requires 30X magnification to clearly view inclusions. These appear as feathers, clouds or small crystals.
	SI1 - SI2 - SI3	Small Inclusions. Described as clouds, crystals, knots, cavities and feathers observed clearly with 10X magnification.
	I1 - I2 - I3	Imperfect-Eye-Visible Inclusions

Crystals are mineral deposits inside the diamond. Clouds are specks that give a diamond a milky appearance. Feathers are small tiny cracks that look like feathers. Other common inclusions are called Pinpoints, Naturals, Scratches, Knots and Cavities.

Inclusions are significant in terms of their effect to block and divert the flow of light through a diamond. Additionally they provide each diamond with a unique fingerprint that makes it unique and identifiable, primarily through certification by Diamond Grading Reports.

Carat

A diamond's weight is expressed in carats, and one carat is roughly equivalent to 200 milligrams. Each carat has 100 points, and fractions of a carat can be decimally expressed as equivalent points. For example a 3/4-carat diamond has 75 points.
The complication of decimally expressing fractional carat weight is the industry norm of giving fractional carat weight a broad decimal range to maintain its qualification within a particular fractional carat weight. For example, a 1/2-carat diamond may have between 45 and 58 points and still be considered a 1/2-carat stone.
Diamond prices may increase disproportionately with the size of a stone because larger-sized diamonds are more rare.
While it is a primary measure of a diamond's value, carat weight in no way exceeds the importance of cut, clarity and color in estimating the worth of a diamond. All 4Cs must be taken into consideration when looking for the best diamond to meet your budget.

Diamond Carat