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The 4 C's

The value of your diamond is determined by four main characteristics - cut, colour, clarity and carat weight as explained below:
Quality of Cut
Styles of Cut
Colour

Clarity
Carat
Diamond weight is stated in carats, a measurement derived from the more romantic, (but less accurate) original scale of comparison using the seeds of the carob tree which were very uniform and consistent in weight. Precision balances are now used and a carat has been standardized as equivalent to one fifth of a gram. 

One carat is divided into 100 points, so for example, a diamond weighing half a carat can also be described as weighing 50 points or 0.50 carats.

Diamonds over 1 carat are particularly rare.  Less than 5% of gem quality diamonds achieve this magic weight once they are cut and polished, making them more desirable and, inevitably, more expensive.
 
Source:  Birmingham Assay Office Anchorcert