clarity and cut.

Carat is a unit of weight. There are 142 carats to an ounce. Carats are sub-divided by points, 100 to a carat. For example, a 45-point carat weighs slightly under half a carat. Due to their rarity, larger diamonds have greater value per carat.

Colour: Grading a stone for colour means deciding the amount by which it deviates from the whitest possible (truly colourless). Completely colourless, icy-white diamonds are rare and therefore more valuable. The best way to see the true colour of a diamond is against a white surface.

Clarity is determined by taking into account the number, size, placement, colour and nature of any internal "inclusions'' or external surface regularities. Inclusions are Nature's birthmarks included in the stone when it was crystallized from carbon millions of years ago. The fewer the inclusions, the more valuable the diamond. Clarity is graded according to the relative position of the diamonds on an established Flawless-to-Imperfect scale.

Cut: Diamonds are cut according to an exact mathematical formula. A finished diamond has 58 "facets'', which are small, flat, polished planes cut into a diamond so that the maximum amount of light is reflected back to the viewer's eye. This reflection is called "brilliance,'' and is extremely important in evaluating the quality of a diamond. Cut also deals with the shape of the diamond. Traditional shapes are round, emerald, marquise, pear, oval and heart.

What should you spend on an engagement ring? A good rule of thumb is: two months' salary will get you the biggest and best diamond you can afford without breaking your budget. Remember, this is (hopefully) a once-in-a-lifetime purchase which has lasting value, unlike many of the items you will purchase throughout your life for your home and yourself. It is also an enduring symbol of your love which some day will become an heirloom for your children.

Where should you buy a diamond engagement ring? Because every diamond has its own characteristics, and no two stones are alike, knowledge of the diamond industry and the nature of diamonds requires years of study. For these reasons, it is important to buy from a reputable dealer who has earned an excellent reputation for integrity, service and reliability. So-called bargain prices and poorly informed sales staff are reasons for caution.

(This information courtesy of Jewelers of America, Inc.) Taxing time: Choosing a ring can be full of pitfalls.