Each year, people spend millions of dollars on diamonds for their loved ones or themselves. These brilliant stones can be man-made or natural, with the latter usually commanding a much higher price than the former. Many people have heard of the 5 C's of diamond grading, which acts as buying guidelines for consumers and apply to both natural and synthetic stones. To understand what allows one stone to command a higher price than another, it is crucial to have a firm handle on the 5 C's.

The 5 C's consist of five measurable characteristics of a stone; carat, color, clarity, cut and certificate. Carat is a measurement of weight, and is the standard measurement among all gemstones. The carat weight measures the total mass; they are categorized based on a points system; 100 points equal one carat, making a 50 point stone equal to .5 carats. Generally, more carats translate to more value. Since synthetic diamonds tend to have higher densities than those that are natural, they tend to be the heavier of the two.

The next of the 5 C's are color and clarity. For most people, color is one of the most important deciding factors when it comes to purchasing diamonds. An ideal, absolutely perfect diamond is as clear as ice; however these are quite rare and are extremely expensive depending on size and whether or not they are man-made. Using the Geological Institute of America's (GIA) standards, clarity refers to the amount of flaws (or "inclusions") found within the stone, which are found in natural stones rather than lab-created ones. In general, especially with natural stones, clearer colors are more sought after than those with flaws.

The GIA also uses a grading system to measure color, with many falling into the "white/off-white" category, as naturally-occurring gems are rarely found in yellow, pink or blue. In general, the colors found in man-made stones are not nearly as brilliant compared to those that are found in nature, and since reproduction of clarity is so difficult, most that are lab-created will be distinctly off-white, rather than clear.

Cut, the 4th C, refers to how the diamond is shaped. Diamonds can be cut in many shapes, with the round "brilliant" cut being the most popular by far. Many people underestimate the importance of this standard, as a perfect cut will accentuate the brilliance of the stone, while one that is rushed may cause the stone to lose its luster.

The final C refers to the certificate of quality offered by the GIA and other institutions. A certificate is highly desirable, as it offers an outside view of the stone's quality and measures its weight, color and clarity. A buyer's best friend, certificates have become invaluable to the industry.

Though naturally occurring stones will always be sought after, the advances in synthetic gem growth has created the opportunity for more affordable and legitimate alternatives.