Natural Colored Diamonds
The natural formation of colored diamonds is quite rare. According to the Gemological Institute of America at gia4cs.gia.edu, there are approximately 10,000 colorless diamonds found for every one colored diamond. The colors are attributed to trace amounts of elements that interact with carbon atoms while they are forming into crystalline structures. The extreme pressures associated with this process, and natural subterranean radiation can intensify the shading or depth-of-color of these diamonds.
Synthetic Colored Diamonds
Synthetic colored-diamonds are created using processes that mimic natural forces, namely high pressures and temperatures. According to jewelryexpert.com, there are two general strategies for synthesizing these diamonds. One option is to build an artificial diamond, and add foreign elements into the mix while the carbon is being heated and pressurized. You can then radiate the crystals once they form. The other option is to take a natural diamond (such as a colorless one, or one with light shading) and radiate the crystals. This radiation process should help enhance the diamond's natural, latent color.
Color Grades
According to gia4cs.gia.edu, diamonds are graded according to three characteristics: saturation, or the strength of the diamond's color, tone, or the relative darkness or lightness of the diamond, and hue, or the defining color of the diamond. There are 27 different hues that jewelers and mineralogists apply to natural colored diamonds, however there are always subtle differences in saturation, tone and hue (all diamonds are unique). The more expensive, higher-grade colored diamonds have names such as "Fancy Vivid" and "Fancy Deep."
Cuts
Cutting a diamond into an aesthetically pleasing, well-balanced shape is a meticulous and demanding craft. While round, circular shapes are the most popular choice for colorless diamonds, when working with colored diamonds, diamond cutters tend to use square and oval shapes; the goal being to maximize the distance that light travels through the body of the diamond. According to jewelryexpert.com, the further light can travel into a diamond, the more it is able to reflect and intensify its natural colors.