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The Colours of diamonds can vary greatly. Diamonds can be red, green, purple, blue, brown, yellow, and even black. The brightly Coloured diamonds are often called "fancy Colour." The Colour is determined by which trace elements can be found within the diamond and how they originated. The most valuable diamonds are those for which no Colour can be found in the stone. Such diamonds, however, are very rare. Far more common are diamonds with a slight to obvious yellow tint.
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A Colourless diamond is more valuable because it reflects 100% of the light back through the diamond.
The Colour Grading System
The most widely used system for grading the colour of diamonds was developed by the GIA (Gemological Institute of America). The system uses alphabetical letters ranging from D to Z+ to identify Colours.

In terms of price, D is the most expensive Colour while N through Z are the least expensive. Diamonds, that are yellow enough to receive the rating of Z+, are considered fancies and are not priced in this manner. Their price increases with the intensity of their Colour.
Diamonds with a grade between D and F are rare and therefore, the most expensive. They are often called "Colourless" or "collection." The difference between a D and F graded stone is a matter of transparency, where D is the most transparent. D, E, and F stones are Colourless to the naked eye.
Diamonds in the G though J area are called "near Colourless" or "white." A near Colourless diamond can also be worth a lot, as the average consumer will not even notice the yellow tints. A trained gemologist, however, will be able to detect the yellowish hue.
K through M rated diamonds, or "faint yellow," have a slightly noticeable yellow tint. These stones are more common and less expensive. Some people prefer the yellowish tint because of the warm tone it conveys.
Diamonds that have been graded N through have a noticeable yellow Colour and are therefore much less expensive.
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