A lot of great questions of late. The simplest answer is that an inclusion is "anything" visible on the interior or exterior of a Diamond (or other gemstone). In a "Perfect" Diamond there is no trace of color. It is, in fact, colorless. There are no blemishes of any kind whatsoever on the exterior of the diamond. Not even microscopically. The same for the interior of the Diamond. Flawless - not even a microscopic blip.
Unfortunately 99.99% of all diamonds have some flaw, some blemish, some spot. These are known, overall, as "Inclusions." Identification of the type of inclusion and its impact on the "Perfectness" of the gemstone is the basis for determining the Clarity of the gem. There are many, many types of inclusions. Below are the most common:
There are times that a small crystal can add character to a diamond. A diamond with a tiny garnet inside would be a conversation piece—and an excellent personal choice for someone whose birthstone is garnet.
Small cracks that are not visible when a diamond is viewed in a table-up (face up) position do not seriously affect clarity ratings.
Don't be intimidated by inclusions. Most buyers are looking for an eye-clean diamond that presents well in its chosen setting, and has minimal color tint. These are the types of Diamonds most commonly purchased, and those representing the best value to the buyer.
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