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Diamonds are graded mainly on the 4Cs - carat, clarity, color, and cut. The most well-known/reliable diamond grading org is the GIA. If you're buying a diamond you should definitely ask for a report so you're sure the stone is legitimate. They have a video that explains exactly how the 4Cs are graded here - http://gia4cs.gia.edu/

It helped me understand what I needed to know when my fiance and I were shopping for my engagement ring.
diamonds are graded on qualilty size and color based on a scale made just for the popular and beautiful jem

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