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Commercially, a diamond is graded according to its cut, its clarity, its colour, and its carat weight.

You can read more following the link, below.

Another Answer

The GIA consumer site has this information as well as a great video that breaks it down really simply. It is the second link, below.

A diamond is graded according to the 4Cs but not all grading organizations are alike. Some are stricter than others. GIA is considered to do the most reliable grades and that type of report is the gold standard for jewelers. They also defined/created the 4Cs way back when.

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