The Market Value of a Diamond.
A diamonds market value is based on four criteria commonly called the four C's. They are Carat, Clarity, Color and cut. Each of these has impact on the beauty and the rarity of the stone as well as the value of the stone.
The first C-Carat weight, measures the mass of the stone. Diamonds less than one carat are measured in points. The larger a gemstone in nature, the rarer and more costly it will be. Size matters but bigger isn't always more beautiful. Everyone would love to wear a 3 carat rock , however only a few of them are of actual gem quality.
In the diamond trade Clarity is a measure of internal defects called inclusions. The clarity grade has to do with what was included in the stones formation in nature. They can be crystals of the same gem. They can be microscopic crystals of some other gem.
They can be little gas bubbles, they can be stress fractures in the stones natural formation. Inclusions affect clarity because they interfere with the lights penetration. All diamonds have some trace impurities. That's why agencies such as the Gemological Institute of America have created grading systems to identify diamonds clarity and graciously help determine their market value.
When they give a clarity grade, their identifying how many inclusions there are, what color the inclusions are, and where they are placed in the gym stone. They also determine whether they affect the visibility and the durability of the stone.
When all of these inclusions have been identified, they are given a speculative grade. Grades range on a sliding scale from Flawless to included. They are then denoted by a series of letters and numbers.
Market Value Report

The coveted I F- Flawless, is only given to diamonds that have no visible inclusions at a magnified power of 10x. Completely flawless diamonds are very rare. Only a few hundred are produced annually worldwide. They can cost from 10's to hundreds of thousands of dollars.
Diamonds rated VVS & VS, have very slight flaws. Each V stands for very. Diamonds with no inclusions that can be seen by the naked eye are considered Eye clean. This is a popular choice for most buyers.
Diamonds that are rated Si-1, or Si-2 have increasing degrees of slight inclusions seen under 10x magnification. Diamonds that are I rated can range from I1-I3. This depends on the level of inclusions. Typically, the more inclusions a stone has, the lower the price.
Sometimes an inclusion can enhance a stones value. They are not always bad. This is known as the diamonds personality. For example, you might find an included diamond with a Sapphire embedded in it. This would be very rare, therefore the price for that particular stone would be very high.
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