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Clarity
Clarity refers to the number and degree of flaws found on the diamond. The grading of clarity in diamonds ranges from flawless to imperfect. A flawless diamond is the most valuable in this category and the clarity of the diamond should always be noted on the certificate.
Color
In general, colorless, clear diamonds are the most valuable in this category. However, a diamond with more color is not always less valuable. There are rare pink- and blue-colored diamonds that are actually more valuable than colorless. Most diamonds however range in color from clear to yellow, brown and grey. There is a letter system for grading the color of diamonds that will be noted on the certificate. The letter system ranges from D to Z. Diamonds with letter grades D,E and F are your clear, colorless diamonds while those graded between G and J are only slightly colored. The higher the letter goes, the more color will be found in a diamond.
Carat Weight
In general, diamonds that weigh more are worth more. The weight of the diamond is measured in carats. Most diamonds are so small and rare that they are weighed by very precise digital scales that will weigh them accurately up to the milligram. One carat is equal to 1/5 of a gram or 200 milligrams.
Cut
Cut refers to how the diamond is shaped and the quality of the cutting job. The objective of cutting a diamond is to give it brilliance, sparkle, symmetry and form. All of these characteristics contribute to the value of a cut. A cut can also be valued more if it is considered to be in style. Of course this arbitrary value will change with the changing styles that come and go. It is highly recommended to buy a diamond in a classic cut such as round and square to ensure that it will retain the highest value. When you look at a diamond to evaluate its cut, search for dark areas of the diamond. These are places where the diamond was poorly cut and can reduce the diamond's value.