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Color
Most diamonds are either white or yellow. White or colorless diamonds are more expensive than most yellow diamonds with the exception of the yellow canary diamonds. Many diamonds have a slight yellow tint. The G.I.A. color grading scale starts with the letter D and ends with the letter Z. Colors with a D rating are typically much more expensive than diamonds with a Z rating. The chart below outlines the standards set forth by the G.I.A. and also provides examples for comparison.

Grade D - F Colorless pic
Grade G - I Nearly Colorless pic
Grade J - L Slightly Yellow pic
Grade M - T Light Yellow pic
Grade U - X Darker Yellow pic

Clarity
Clarity is determined by how many inclusions or blemishes can be seen on the diamond with a 10x loupe(magnifier) or the naked eye. Over 99% of the diamonds available on the market contain some type of inclusion. G.I.A. uses the scale below to grade a diamond based on those inclusions.

Flawless Contains no invisible inclusions when viewed under 10x magnification. Rare and very expensive.
Internally Flawless Contains no inclusions, but may have slight Blemishes invisible to the naked eye, but visible under 10x magnification. Expensive and rare.
VVS1 and VVS2 Contains very slight inclusions or blemishes (very, very slightly included) only visible under 10x magnification. Rare and expensive.
VS1 and VS2 Diamond contains very small blemishes or Inclusions only visible under 10x magnification. Very high quality.
SI1 Contains inclusions which can be seen under 10x magnification. These inclusions might be slightly larger than those found on a VS graded diamond. However, no inclusions should be visible to the naked eye.
SI2 Diamond inclusions easily detectable under 10x magnification. May contain inclusions which are visible to the naked eye.
I1-I3 Diamond contains inclusions easily seen by the naked eye. DiamondSpotter does not recommend diamonds in the I2-I3 range.

Carat Size
A diamond's carat size is determined by its actual weight. Diamond weights are determined by points. One carat equals 100 points. 50 points would be a half carat. A 1.5 carat diamond is equal to 150 points.

Larger diamonds are rare and more expensive than smaller diamonds. In other words, a one carat diamond will be more expensive than 4 ¼ carat diamonds with the same grade.