Refers to the presence of inclusions in a diamond. Inclusions are natural identifying characteristics or 'birthmarks' such as minerals or fractures, appearing while diamonds are formed in the earth.
They may look like tiny crystals, clouds or feathers. To view inclusions, jewellers use a magnifying loupe. This tool allows jewellers to see a diamond at 10x its actual size so that inclusions are easier to see. The position of inclusions can affect the value of a diamond. An inclusion closer to the centre of a stone is more obvious, therefore push the clarity grade down further than if it were close to the edge which could be hidden in a setting.
There are very few flawless diamonds found in nature, thus these diamonds are much more valuable.