Many high profile celebrities, royalties and ultra rich people buy diamonds both for adornment and investments. When in time of unforeseen financial problems, diamonds can be easily sold for a high amount.

The price of a diamond is generally based on 4 Cs ? Color, Carat, Clarity and Cut. Among these four, the color may be the hardest to decide because there is a wide array of diamond colors to choose from.

There are a variety of colors of diamonds found in the market today. There pink, yellow, blue, brown, red and many other colors. In fact due to structural shifting and a variety of impurities, many other tints of diamonds exist.

To the jewelers, diamonds have color grading to determine the price of the stone. Grades D-E-F generally refers to the colorless type. Diamonds having these grades are usually the more expensive types and very difficult to find because of their rarity.

Grade G-H-I-J are the nearly colorless types and maybe relatively expensive. Diamonds having grades K-L-M have usually yellow tints. Grades can reach up to Z and price decreases as the grading approaches Z.

If you are a purist and have a lot of money, settle for diamonds with a grade of D-F. They are the best the industry but they maybe sold by select few jewelers. Near colorless diamonds within G-I grade show no noticeable color and tints to the naked eye can also be an excellent choice.

It is very common to find fancy and colored diamonds in the market today. Even though they are designed for mass appeal, the still exude elegance and style so it is no wonder that one can see high profile people in public functions wearing these stylish colored diamonds.

Fancy and colorful diamonds are created by irradiation which can turn yellow or brown diamonds into greens, blues, reds and other fancy colored ones. These fancy colored diamonds are an inexpensive alternative to the rare and very expensive natural colorless diamonds. But these fancy colored diamonds should not be considered as an investment. If you want to buy one of these fancy colored diamonds, make sure you ask the jeweler for care instructions.

There are two general grading for fancy colored diamonds. The first is based on basic hue like yellow, blue, green, etc. The second grading is based on intensity. In general, the more intense the color, the more expensive the colored diamond costs. As an example, a fancy vivid pink diamond is more expensive than fancy light pink even if they have exactly the same clarity, shape and size.

To conceal yellowish tints in diamonds that may affect the diamond's quality and price, some jewelers trick buyers by applying coatings to the diamonds to change the color. These coatings will eventually rub off in time. If you are buying diamonds, this is one aspect you should be wary about.