The "4 C's" Of A Diamond A diamond's value is based on four criteria: color, cut, clarity, and carat. The clarity and color of a diamond usually are graded. However, scales are not uniform: a clarity grade of "slightly included" may represent a different grade on one grading system versus another, depending on the terms used in the scale. Make sure you know how a particular scale and grade represent the color or clarity of the diamond you're considering. A diamond can be described as "flawless" only if it has no visible surface or internal inclusions when viewed under 10-power magnification by a skilled diamond grader. For a more detailed description of the 4 C's go to our Education portion of this website.