Four Cs

AAA

DEFINITION of 'Four Cs'

The four characteristics used to determine the value of a diamond. The Four Cs of diamonds correspond to the carat, cut, clarity and color. The characteristics of a diamond are graded and categorized by the diamond industry to establish its retail value.

Cut refers to the diamond's reflective properties.
Clarity refers to the occurrence of inner flaws or inclusions in the diamond.
Color refers to the presence or absence of a diamond's color. Colorless diamonds allow more light to pass through than colored diamonds.
Carat refers to the weight of the diamond. Larger diamonds are exponentially more valuable because of their rarity.

INVESTOPEDIA EXPLAINS 'Four Cs'

The diamond certificate, which is also called a grading report, is considered the fifth C. The fifth C is a complete evaluation of a diamond that has been executed by qualified professionals using specialized gemological instruments. The certificate details the diamond's exact measurements, weight and details of its cut and quality. In addition, the certificate identifies the diamond's unique characteristics. The certificate describes the diamond's quality, but it does not place a monetary value on the stone.

RELATED TERMS
  1. Precious Metals

    A classification of metals that are considered to be rare and/or ...
  2. Diamonds

    1. An extremely hard gemstone used mainly for jewelry, tools ...
  3. Gemology

    The combined art and science of studying, cutting, valuing, buying ...
  4. Appraiser

    A practitioner who has the knowledge and expertise necessary ...
  5. Cleave

    The occurrence of a gemstone breaking into two or more pieces ...
  6. Bulldog Market

    A nickname for the foreign bond market of the United Kingdom. ...
Related Articles
  1. 5 Most Expensive Diamonds Ever Auctioned
    Economics

    5 Most Expensive Diamonds Ever Auctioned

  2. Introduction To Gemology
    Options & Futures

    Introduction To Gemology

  3. Diamonds: The Missing Commodity Derivative ...
    Active Trading

    Diamonds: The Missing Commodity Derivative ...

  4. Understanding Benchmark Oils: Brent ...
    Investing Basics

    Understanding Benchmark Oils: Brent ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center