Unless you are familiar with the diamonds grading process, and the average person usually is not, then you will not know how to determine if the price you are paying is appropriate for the diamond you are buying.

You first have to familiarize yourself with this grading process. The four C's is the term used to define the four words involved in this, color, clarity, cut , and caret.

They all help determine the diamonds value. The color that is best is a clear white. It is graded by a chart ranging from D to Z. The closer to D the diamond you pick is the better.

The cut of a diamond has a more involved process. The artistry required to cut a diamond is no simple matter. In order for the diamonds light reflection potential to be achieved, the facets of the diamond have to be perfectly symmetrical to maximize the fire and brilliance you get from the stone.

The clarity of the diamond also has a grading procedure that is complicated. What a diamond looks like on the outside is important and it is possible for a diamond to have visible flaws on the outside. What a diamond looks like on the inside plays just as big a part of the determining value.

Some flaws or inclusions, as they are also called, may be visible to the naked eye. In most cases a jeweler will use a x10 magnifier called a loupe to look deep into the core of a diamond to chart defects inside. Spots of carbon, which create dark spots or fuzzy looking spots, are inclusions.

The fewer inclusions a diamond has, the greater its value is. These inclusions will be listed on the certificate of authenticity you receive when you buy diamonds or gem stones, along with the other 3 C's.

The caret of the diamond is the fourth C. The caret tells how much a stone weighs. Obviously the bigger the diamond, the more valuable it will be. Having even a minor knowledge in the diamond grading process will make you feel a lot more confident in the choice you make.