Clarity is a term that is used to describe the clearness of a diamond. A perfect diamond with perfect clarity is rare, and most flaws that exist in jewelry grade diamonds cannot be seen without looking at them through a jeweler's magnifying loupe.

It is important to understand diamond clarity before you shop for a diamond ring or other piece of jewelry so that you understand the jeweler's explanations and don't get confused by the word flaws or other terms used to describe the tiny imperfections found in all diamonds.

Cut does not refer to a diamond's shape. Instead, it describes the diamond's proportions, such as its depth and width and the uniformity of its facets, all characteristics that control brilliance, durability and other features we look for in a quality diamond. A good cut is essential to a diamond's beauty. If the cut is of poor proportions, even a diamond with outstanding color and clarity will not display the sparkle that you look for in a quality cut diamond.

Color is the amount of color the diamond contains. This can range from clear or colorless to yellow with slight tints of yellow, gray or brown. Colors can also range from intense yellow to brown, blue, green, pink and red. The latter colors are rare and are, therefore more expensive.

Carat is the unit of weight of the diamond. A carat is further subdivided into 100 points e.g., 0.01 carat = 1 point. The value per carat increases with carat size because larger, rough diamonds are found less frequently. In other words, two half-carat diamonds will not cost as much as a one-carat diamond because the one-carat stone is more rare. One carat is equal to 0.20 grams.