The 4 C's - Colour
When a diamond is growing, the presence of different substances and / or conditions will influence the colour of the stone. Diamonds occur in different colours, including red, orange, and more commonly, yellow. This last colour is not a desired colour, unless it is extremely yellow. So much so that it is considered a "fancy" colour.
The Gemological Institute of America has created a Diamond Color Grading scale for diamonds that goes from D, considered colourless, to Z which is almost a fancy colour. The more yellow present, the lower the colour grade and hence, value.
Diamond Colour Grades

In the media, and in movies, we have all heard about the "D Flawless" diamonds which numerous jewel thieves steal in television movies from time to time. These are very rare, and very expensive. Most people do not need to consider these grades for their needs.
Just like clarity, it is a matter of personal preference which grade you go with. It effects the appearance of your diamond as does clarity. So, decide which grade you want to stay with based upon your own personal tastes.
A good general colour range, would be "GH" no real perceived yellow to the naked eye, in a ring. As you proceed to J and onward, the stones begin to have a "warm" perceived tone to them as opposed to the "cool" tone that they normal have in the higher colour ranges.
A gemologist grades colour, usually in your ring mounting, which effects the ability to perceive colour, since your mounting is probably yellow gold. When the stone is loose, it is graded by comparing it to other "Master" stones the colour of which is known.
Just like clarity, it is a matter of personal preference which grade you go with.
